MASTER 
NEGATIVE 

NO.  95-82505 


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Author: 


U.S.  Congress.  House 


Title 


National  banks, 

January  24,  1893 

Place: 

[Washington,  D.C 

Date: 

[18931 


^5'^25qS  '  \ 


MASTER    NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

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U,  '6.     ConcrccG.     House.     Comittcc   on  l^an^rin^  and 
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LIBRARY 


1 


School  of  Business 


I 


/ 


TESTIMONY  TAKEN  BEFORE  THE  COMMITTEE  ON  BANKING  AND 
CURRENCY,  HOUSE  OF  REPRESENTATIVES. 


Committee  on  Banking  and  Currency, 

April  27,  1892, 
The  Committee  on  Banking  au<i  Clurrency,  charged  by  tlie  resolution 
of  the  House  with  the  investigation  of  certain  banks,  met  at  11  a.  m.  tor 
the  purpose  of  commencing  their  investigation. 

Present:  Mr.  Bacon  (chairman),  and  Messrs. Dickerson,  Cate,  Sperry, 
Townsend,  Cobb,  Cox,  Gantz,  and  Walker. 

The  clerk  read  the  resolution  under  which  the  committee  were  acting, 
as  follows: 

In  the  Hoi)\SK  of  Refjm:iskntatives, 

February  9,  1892. 
Whereas,  the  Keystone  National  Bank   and   the  Spring'  Garden  National  Bank 
located  in  the  city  of  Philadelphia,  in  the  State  of  Pennsylvania,  and  the  Maverick 
JSational  Bank,  located  in  the  city  of  Boston,  in  the  State  of  Massachusetts,  have  be- 
come l)ankrui)t  and  are  now  in  the  hands  of  receivers;  and 

I  Whereas,  it  is  allej^ed  that  large  sums  of  money  belonging  to  the  public,  to  the  city 
ot  Philadelphia,  and  to  the  State  of  Pennsylvania  have  been  lost  by  reason  of  sucli 
bankruptcy;  and 

Whereas,  it  is  further  alh';j^ed  that  the  losses  sustained,  to  a  great  extent,  are  due 
to  willful  negli<;eiice  or  inefficiency  on  the  part  of  officials  of  the  United  States  Gov- 
ernment whose^  duty  it  was  to  examine  and  report  the  financial  condition  and  stand- 
injf  ot  said  banks.     Therefore 

Resolved,  That  the  Committee  on  Banking  and  Currency  be  instructed  and  re- 
quired to  investigate  and  report  to  the  House  the  causes  which  led  to  the  bankruptcy 
ot  s^d  banks,  or  either  of  them,  and  to  inquire  and  report  whether  any  official  or 
ll'^^^^^^i.  4,  Government  of  the  United  States,  whose  duty  it  was  to  eiamine  and 
dlLl^nvl^  fi«a^cial  condition  and  standing  of  said  banks,  neglected  or  refused  to 
t  W  1  ?^vf  P^^^«^"^  *?a*  duty ;  whether  the  losses  sustained  by  the  patrons  of 
oiHre  InH  .^''T'^  J"^'*  ""^/''f^  ^2^^''"'  ""'^''^^  occasioned  by  such  neglect,  and  to  in- 
thi  ln.«  nf  !S  ^^  *""  any  tact  or  tacts  connected  with  the  bankruptcy  of  said  bauks, 
the  Unite  1  *5f  J"«°^y  ^y  *^«\r  depositors  or  patrons,  and  any  acts  of  anv  official  of 
nort«nf  «i/  1  '"  "r^f  ary  m  said  investigation  a«  the  committee  may  deem  im- 
inJltw^  «r«  ^l^Z  ^^^*5«^ajiy,  and  if  any,  what  amendments  to  the  national  bank- 
future  necessary  for  the  protection  of  the  public  against  similar  losses  in  the 

^^^vt^^to\^^Z'fi^^^^T-^'^'^7^^^^  send  for  persons  and  papers  and  to  employ 
-atfonto  btT,*i    ^  TiJ'^'^  Its  investigation.     The  expense  attending  the  investi- 
S  t  contingent  fund  of  the  House. 


James  Kerr. 


Cleric. 


wo  wii?^       ^^"^^^  Yi".^^"^  *^^  resolution  and  by  order  of  the  committee 

PhiirhinblT^Ax^  1^'^  morning  with  the  Keystone  National  Bank  of 

iXPurL.  ^^^  ^^^?  ^^^^?  ^i«  Mr.  Edward  S.  Lacey,  Comptroller 

and  wo  wii    i  ^'  ''vl"  ^^  ^^""^  '°  compliance  with  a  lett/r  sent  to  him, 
«ina  we  wdl  start  with  hmi  as  the  first  witness.  ' 

.3792 1 


I  '       INVESTIGATION   OF   NATIONAL   BANKS. 

TESTIMONY  OF   EDWARD  S.  LACEY,  COMPTROLLER  OF  THE  CUR- 
RENCY. 

Edward  S.  Lacey,  sworn  and  examined. 
By  the  Chairman  : 

Q.  You  are  at  present  the  Comptroller  of  the  Currency  of  the  United 
States? — A.  I  am. 

Q.  How  long  have  you  occupied  that  position? — A.  1  entered  upon 
the  duties  of  the  office  on  iMay  1, 1889. 

Q.  And  have  continued  in  the  oflice  ever  since?-— A.  I  have  continu- 
ously occupied  that  position  up  to  the  present  time. 

Q.  Will  you  give  me  the  date  on  which  the  receiver  of  the  Keystone 
^sTational  Bank  was  appointed,  if  you  happen  to  have  it  in  mind? — A. 
It  was  May  8,  1891. 

Q.  Now,  give  us,  if  you  please,  the  date  of  the  organization  of  that 
bank,  and  state  briefly  the  chronological  history  of  its  ojieraticms  in  re- 
gard toitscit])ital,  its  increase  of  capital,  and  so  on?— A.  The  Keystone 
National  Bank  of  Philadelphia  was  origiuallv  a  State  institution,  with 
a  capitalization  of  $200,000.  The  autliority  executed  by  the  directors 
of  the  State  bank  for  its  conversion  into  an  associated  bank  under  the 
national  bank  act  was  dated  March  25,  1875,  and  it  was  filed  June 
15,  1875.  Its  arti(;les  of  association  were  dated  March  23, 1875,  and 
were  filed  June 24, 1875.  The  organization  certificate  was  dated  March 
2^)^  1875,  and  was  filed  June  24,  1875,  at  which  latter  date,  under  the 
law,  it  became  incorporated  under  the  naticmal  banking  act.  The 
Comptroller  of  the  Currt^ncy  on  June  30,  1875,  issued  his  certificate 
authorizing  the  bank  to  commence  business.  It  continued  in  business 
fiom  that  time  until  31arch  19,  1891,  when  it  was  closed. 

Q.  How  was  the  capital  of  |200,000  divided?— A.  It  was  divided  into 
shares  of  $50  each. 

Q.  Have  you  any  statement  which  would  show  the  condition  of  the 
affairs  of  the  bank  at  that  time  other  than  what  is  shown  by  your  regu- 
lar statement?— A.  I  have  only  such  evidence  as  was  disclosed  by  the 
report  of  condition,  which  was  filed  with  its  application  for  conversion, 
and  the  report  of  the  examiner,  which  was  made  shortly  after  it  com- 
menced business. 

Q.  Can  you  give  up  those  reports?— A.  The  report  of  condition  of  i\ie 
Keystone  Bank,  prior  to  its  becoming  an  association  under  the  national 
banking  act,  w^as  made  at  the  close  of  bnsiness  on  the  12th  of  June, 
1875,  and  a  copy  of  that  report  is  in  the  papers  transmitted  to  the  com 
mittee. 

Q.  Have  you  a  copy  of  those  papers  which  are  intended  to  be  left 
with  the  committee?— A.  Yes,  sir.  Here  is  a  certified  copy  of  those 
papers.  This  [indicating]  is  the  examiner's  report,  made  on  August 
23, 1875  [examining  papers].  I  will  state  that  this  bank,  as  a  national 
assocmtion,  opened  its  doors  for  business  August  1,  1875,  as  a  national 
bank. 

Q.  You  have  also  the  examiner's  report?— A.  I  have  a  report  of  an 
examination  made  by  Mr.  W.  P.  Drew  on  the  2;Jd  of  August,  1875. 

Q.  Look  at  the  item  of  resources  and  the  examiner's  report,  and  state 
whether  there  is  any  ditterence  between  the  loans  and  discounts  on 
that  date,  at  the  time  of  this  report  of  resources  ?— A.  The  loans  and 
discounts  on  the  12th  of  June,  1875,  according  to  the  report,  aggregate 


INVESTIGATION   OF   NATIONAL   BANKS.  3 

* 

$175,433'.45 ;  the  other  report  made  by  Mr.  Drew  on  August  23,  1875, 
shows  $180,184.79. 

Q.  The  banking  house  property,  which  is  in  this  report  of  June  12, 
is  put  at  $90,000. — A.  In  the  examiner's  report  it  is  stated  as  $150,000. 

Q.  There  is  an  item  in  that  report  of  suspended  notes.  That  means 
overdue  paper,  I  take  it. — A.  Of  course;  suspended  notes  would  mean 
overdue  notes. 

Q.  Is  there  such  an  item  in  the  examiner's  report?  That  item  in  this 
report  is  $25,928.60. — A.  Nothing  appears  in  the  statement  of  liabilities 
on  the  face  of  the  report;  but  in  the  remarks  of  the  examiner  he  states 
that  past-due  paper  at  $4,611.76.    They  are  referred  to  as  bad  debts. 

Q.  What  is  the  amount  of  the  bad  debts? — A.  None  are  stated.  The 
matter  of  bad  debts  comes  under  section  5204  of  the  Eevised  Statutes. 

Q.  Does  the  item  due  from  the  First  National  Bank  of  Philadelphia, 
$26,268.88,  subject  to  sight  draft,  appear? — A.  The  only  item  appear- 
ing in  this  report  among  the  resources  is  an  amount  due  from  other 
national  banks  of  $49,660.11.  "Other  national  banks"  means  national 
banks  not  designated  as  reserve  agents. 

Q.  There  is  no  item  of  the  I^st  National  Bank  separately? — A.  No, 
sir. 

Q.  There  is  an  item  of  "  bills  of  other  national  banks,  $12,192."  What 
does  that  mean? — A.  That  refers  to  circulating  national  bank  notes. 

Q.  In  the  liabilities  the  capital  paid  in  is  stated  at  $239,690.  Will 
you  look  at  that  report  of  the  examiner  and  see  what  it  states? — A.  It 
is  stated  at  $200,000  in  the  examiner's  report. 

Q.  The  individual  deposit  account  on  this  list  is  $246,497.82. — A.  It 
is  $256,937.50  by  the  examiner's  report. 

Q.  "Due  to  banks  and  bankers,  $1,221.88."— A.  This  report  shows 
the  amount  due  tx>  national  banks  to  be  $8,448.13,  and  due  to  State 
banks  and  bankers,  $1,320.41. 

Q.  What  is  the  total  of  assets  and  liabilities?— A.  $538,751.73. 

Mr.  Sperry.  What  is  the  difference  in  the  date  of  these  statements? 

The  Chairman.  One  is  June  and  the  other  is  August;  about  two 
months. 

* 

Q.  The  item  given  in  the  examiner's  report  as  to  the  value  of  the  real 
estate  is  the  value  as  it  appears  on  the  books  of  the  bank,  and  not  by 
appraisement  of  the  examiner?— A.  Yes,  sir. 

Q.  So  that  the  effect  is  that  any  change  which  appears  in  this  item  be- 
tween the  statement  of  the  resources  in  general  and  the  examiner's  report 
represents  the  change  made  upon  the  books  of  the  bank?— A.  Yes,  sir. 
It  will  be  observed  that  in  the  examiner's  report  other  real  estate  men- 
tioned among  the  resources  is  valued  at  $35,802.60,  making  all  the  real 
estate  valued  at  $185,802.60,  while  the  capital  of  the  bank  is  only 
$2()0,000.  The  examiner  says  in  reference  to  the  real  estate  that  these 
estimates  were  taken  under  the  old  regime.  The  president  agreed  that 
tliese  as  well  as  the  mortgages  should  be  disposed  of  within  six  months. 
Ihe  Comptroller  evidently  made  an  agreement  that  the  real-estate 
account  should  be  reduced. 

co?o.^^\S^?,«*^  ^'*  ^*^"*  in  the  report  of  resources,  -  other  real  estate, 
!r>?'!l^\^^^--^-  '^Otlier  real  estate"  in  this  report  is  stated  to  be 

By  the  Chairman  : 

Q.  Another  item  is,  "  mortgages  on  real  estate,  $38,827.50."  Is  there 
any  such  item  in  the  examiner's  report  ?— A.  It  shows  the  item  of  other 
leai  estate,  stocks,  bonds,  mortgages,  to  the  amount  of  $26,327.50. 


II 


4  INVESTIGATION   OF  NATIONAL   BANKS. 

Q.  Who  was  the  examiner?— A.  W.  P.  Drew. 

Q.  This  same  man  continued  to  examine  this  bank!— A.  Yes,  sir 
until  it  was  finally  closed.  (The  exhibits  referred  to  by  Mr.  Lacey  were 
presented  by  him  to  be  inserted  in  the  evidence,  and  are  marked  Ex- 
hibits A  and  B.) 

Exhibit  A. 

Report  of  the  condition  of  the  Keystone  Bank  of  Philadelphia,  Pa.,  at  the   dose    of 

basiucsif  June  12th,  1875. 

RESOURCES. 

Loans  and  discounts .  ^^1K  Ano  au 

Overdrafts ...'.;  V.*.:*;.: 1  186  79 

Due  from  banks  and  bankers in'«ft7'ii 

U.S. bonds ';;;.';;;;;;;. ■*-   50' ^-^J 

Premium  on  U.  S.  bonds q  mn  no 

Mortgages  on  real  estate; 33  827  "V) 

mwrS^Tt^''**^''''*-^ *-:"/.:::::::;::::::   90; 000:00 

Utner  real  estat*^ ox  S0'>  fiO 

Insurance  (perpetual)  on  banking  bouse ."JS\ *  600  00 

Susjx-nded  notes  (discounts) ok  ooe'cn 

Profit  and  loss 'aZf^ 

Furniture ■.::::;;::;:::;:: ifmf> 

stationery ;;;; '?5ooo 

Current  expenses " " 97  f- 

U.S. revenue  stamps  on  liand 148  1*S 

Checks  and  other  cash  items .'.' j  4  2  lO^T 

Fractional  currency  (including  nickels)  ....         l'97«ViM) 

Due  from  First  Nat'l  Hank,  Phila.lcl].bia  (subject  to  sight  \\Y;\\'t) ^^^  ^y^si  88 

Billsofother  national  banks '                                  To  iq9  m 

Legal-tender  notes. ^•^^:^::::::.:::::::::::::::.    i^Z 

488, 198.  45 

LIAIilLITIES. 

Capital  stock  paid  in 900  oq^  f\t\ 

inxeresi 97  79 

Discount 'r-o'll 

Exchange **.".".'.  .*.'.".*.'.".' 7  fIJ 

Individual  deposits ...^  .Jj'  gj 

Due  to  banks  and  bankers •' ^"-i^'.".:  i.".'..."/.."**.'..'.".*. .*."'.;        1  221  88 

488, 198. 45 
Philad,,  June  14,  1875. 

J.   B.   WiSWELL, 

Cash, 


INVESTIGATION   OF   NATIONAL   BANKS. 


KX  111  BIT   B. 


5 


[No.  of  bank,  2291.] 

Examiner's  report  of  the  condition  of  "  The  Keystone  National  Bank,''  located  at  Phila- 
delphia, in  the  count}/  of  l*hHadelphia,  State  of  Pennsylvania,  at  9  o'clock  a.  m., 
Au(iuHt23;i875. 


'iHOMAS  Allman,  President.] 


[J.  B.  WiswELL,  Casliier. 


liesonrces. 


Dollars,    i 


Liabilities. 


Dollars. 


jl 


k 


8. 

9. 
10. 
11. 
12. 

13. 
14. 

15. 

16. 
17. 

18. 
19. 
20. 

21. 


22. 
23. 

24. 


Xote.s  and  bills  di.scounted 

Overdrafts  (22  a(-.) 

V.  S.  bonds  to  secure  (Circulation., 
U.S.  bonds  to  secure  deposits  -  - . 

IT.  S.  bonds  on  band 

Otlier  stocks,   bonds,    and    mort- 
gages  

Diie  from  app'd  reserve  agents, 

viz :  (None  yet  appointed) 

Due  from  other  national  banks 

Due  from  Static  banks  and  bankers. 

Banking  house $150,  000.  00 

Other  real  estate 35, 802. 60 

Furniture  and  fixtures      1, 003. 62 


180,184.79  ;      1. 

904.54  ij    2. 

50,000.00  '■■.     3. 

4. 

5. 

26,327.50   I    7. 


■|i 


Capital  stock  paid  in. . 

Surplus  fund 

Di.scount 

Exchange 

Interest 

Premiums 

Profit  and  loss 11, 056. 03 


$610. 42 

21.32 

229  01 


200, 000. 00 


49,660.11  !i    8. 
2,020.49 


Current  expenses. 
Taxes  paid 


186, 806. 22 
291. 17 


Rent 

Circulation  received  . 
On     hand    and     re- 
turned   


$       Xone. 


11. 916. 78 
128. 50 


9.  State  bank  circulation  outsta  nd- 


Preraiunis  paid ! 

Perpcitual  insurance j 

Checks  and  other  cash  items ; 

Exfh's  for  C.  H.,  includ'g  gold  | 
checks j 

Hills  of  other  national  banks I 

Bills  of  State  banks ' 

rra<;tional  currency  (includ'gnick-; 
els) , ' ; 

Specie,  viz:  i 

Coin $ : 

bold  Treas'y  notes : 


8,762.50  1 1 

600.00  |l 

13,122.09  1! 


li  10. 
11. 


mg 

M't'g  on  bank  property 

Dividends  unpaid 

Individual  deposits,  viz: 

Subject  to  check. $250, 947. 51 


60,000.00 


11,  365. 00 


Demand  certifs . 
Time  certificates  - 
Certified  checks . 
Cashier's  checks 


5, 990. 00 


I  12. 


2,296.32  ii 


Legal-tender  notes 

U.  S.  cert's  of  dep.  for  legal  tend 

era ' 

Eedemntion  fund  with  Treas.  U. 

S.    (Jsot  yet  remitted.) 
Cash  short 


6, 310. 00 


13. 

14. 

15. 
16. 
17. 


United  States  deposits ! . 

Deposits  of  U.  S.  disbursing  ofti-  \ 

cers 

Due  to  national  banks : 

Due  to  State  banks  and  bankers.  | 

Notes  and  bills  re-discounted i. 

Bills  payable i. 

Cash  over ■ . 


256, 937. 51 


8,  448.  53 
1, 320.  41 


101.00 


Total i  538,751.73 


Total ;    538,751.73 


Records:  In  good  order;  bills  discounted  found  correct. 

Other  books:  Very  well  kept;  individual  ledger  was  balanced  and  found  to  be  cor- 
rect;  is  in  excellent  hands;  daily  ^'  statements  "  made. 

President:  Owns  35  shares  of  stock;  a  retired  gentleman  devoting  himself  exclu- 
sively to  bank. 

Cashier:  Formerly  in  Girard  National  Bank;  evidently  a  careful  and  laborious  offi- 
cer; acts  as  paying  teller. 

Directors:  7  owning  330  shares  of  stock;  H.  J.  Crump  has  but  11  shares,  par  value. 

«+    T  u  ■  1  °^^^^*^  meets  semi  weekly  mainly  in  active  business. 

JMo(!kholders:  120;  certificates  will  be  issued  to  alias  soon  as  practicable;  largest 
**    T  '  ^^^^®-  ^^'i^lJanis,  a  director,  100  shares. 

oihcc:  Large  banking  house  corner  Juniper  and  Chestnut  streets;  well  arranged: 
remainder  ot  building  well  rented  for  offices,  etc. 

bale:  Large  safe^  vault  by  Evans  &  Watson ;  good  doors,  good  locks ;  244  safe-deposit 
boxes,  watchman;  burglar  alarms. 


DIVIDENDS  AND   SURPLUS   (SECTION  33). 

m!f«^f..!l^*  dividend,  May  1,  1873;  amount,  3^  per  ct. ;  carried  to  surplus,  $- 
UUia  bank  went  into  operation  as  a  national  bank  August  1,  1875.) 


6 


INVESTIGATION   OF   NATIONAL   BAXKS. 


LOANS  AND  DISCOVNTS. 


$165,  741. 69 


On  ]>ni)or  witli  two  or  more  individual  or  firm  names 

On  ,sin<;le  name  i»ai)er  (one  person  or  firm)  without  other  security 

On  mortgagen  and  other  real  estate  security 

On  U.  S.  bonds  payal)le  on  demand ! ]]] 

On  other  stocks,  bonds,  etc.,  payable  on  demand .......... 

All  other  loans  (nine  loans  on  collaterals,  13  notes) ''.'.....       i4,443.i() 

Inclnded  in  the  above  are —  ,  » 

Bad  debts  as  defined  in  section  38 $ 

Other  suspended  and  over<lne  paper $4  611.  76 

Liabilities  of  (lirectors  (in<lividual  and  firm)  as  payers 

(2  borrowers) '..„  $10,754.00 

Loans  exceeding  the  limit  prescribed  by  section  29,  viz:  (None). 

GENERAL   REMARKS. 

Mortgages,  etc.,  on  han<l: 

1st  mortgages  on  large  number  of  dwellings  on  19th  st.  and  Indiana 
avenne,  taken  under  ''(dd  regime"  for  loans  made;  bk.  has  five 
insurance  p(ds.  on  all $24  827.50 

Ground  rents  here  bought  for  debt  .' ] ],,       "I'sOO.OO 


Other  real  estate: 

7  acres  on  Richmond  st.  with  three  dwellings 

3  houses  on  Anderson  st [ . . 

1,600  acres  in  Cumberland  Co.,  N.  Y ..".!!!"!'..."] 

Lot  in  Oxtbr<l,  Chester  Co.,  expect  to  sell  to  Bait.  Cent'l  R.  R.'Co. 


26, 327. 50 

20,  000. 00 
3, 302. 60 
7,600.00 
5, 000.  00 

35, 802. 60 


These  were  taken  under  the  "  old  r6gime."  Prest.  states  that  he  agreed  that  these 
as  well  as  the  ''  mortgag«'s  "  above  should  be  disposed  of  within  six  months.  This 
with  the  Comptroller  of  the  Currency. 

"  Past  due  ])aper : " 

Due  ]875,  9  notes,  protested,  carried  in  '^cash  items,"  good $2,  .345.28 

Dae  1875,  2  notes,  with  att'y  carried  in  cash  items,  good 271. 48 

Due  May,  1874,  Jno.  M.  Brodles,  judg't  obtained,  hopeful 1,  995.  00 

4,611.76 

Loans  on  coUaterah.—Aimmg  these  is  one  note  of  J.  C.  Wvman  for  $1,236.29,  secured 
by  pledge  of  stock  of  this  bank.     President  says  securitv'will  be  changed  at  once. 

iS/awji>8.— Revenue  official  examine<l  this  bank  last  winter  for  unstamped  checks, 
found  n(me.  My  examination  discovered  18  che(;ks  not  stamped.  These  were  8tampe<l 
to-day  properly.  There  does  not  seem  to  be  any  intentional  neglect  in  this  case. 
Bank  has  to-day  decided  to  use  hereafter  nothing  but  stamped  (printed)  checks. 

Deposits.— OH  these  interest  at  rates  of  3  per  cent  and  4  per  cent  is  paid  on  $74,725.96. 
There  are  also  $10,575.62  still  of  the  ' '  savings  branch  "  of  the  old  bank.  This  is  being 
*'  dried  up  "  as  fast  as  possible. 

W.  P.  Drew, 

rr.    XT     ^,  _  Examiner. 

To  the  COMrXROLLER  OF  THE  CURRENCY, 

Washington,  D.  C, 

By  Mr.  Sperry  : 

Q.  When  was  the  jurisdiction  of  your  office  attached  to  this  bank?— 
A.  Theoretically  from  the  date  of  tlie  certificate  of  authority,  but  prac- 
tically from  the  opening  of  the  bank. 

Q.  Is  there  anything  to  indicate  when  it  commenced  business  and  to 
show  when  the  authority  began  to  attach  to  it?— A.  The  examiner's 
report  shows  that  the  bank  opened  for  business  August  1,  1875,  and 
our  jurisdiction  would  practically  commence  from  that  date. 

Q.  When  a  bauk  changes  from  a  State  to  a  national  bank  do  you 


INVESTIGATtOX   OF   NATIONAL   BANKS.  7 

have  an  examination  on  the  date  that  the  bank  enters  into  operation? — 
A.  No,  sir ;  but  as  soon  after  as  it  is  i>racticable. 

Q.  In  this  case  how  soon  was  it? — A.  Twenty-three  days. 

q!  Would  it  be  possible  for  a  bank  having  received  this  certificate  to 
continue  as  a  State  bank?  Would  it  so  continue  indefinitely? — A.  The 
law  says  it  shall  become  a  corporation  under  the  national  bank  aet  at 
the  date  of  the  execution  of  its  organization  certificate. 

By  Mr.  Dickerson  : 
Q.  That  would  dissolve  it  under  its  State  charter? — A.  That  would 
be  a  legal  question  that  I  hardly  would  want  to  give  an  opinion  upon. 

By  Mr.  Sperry: 

Q.  You  do  not  attach  jurisdiction  until  you  receive  notice  that  the 
bank  has  commenced  business  as  a  national  bank? — A.  Yes,  sirj  that 
is  the  practice  of  the  office. 

Q.  You  probably  take  some  action  to  revoke  a  charter  unless  they 
notify  you  that  they  are  ready  to  'operate  as  a  national  bank? — A. 
There  is  no  process  by  which  the  Comptroller  can  terminate  the  fran- 
chise of  a  bank  except  in  case  of  the  appointment  of  a  receiver  or  a  suit 
to  vacate  its  charter  under  the  law. 

By  Mr.  Walker  : 

Q.  The  appointment  of  a  receiver  by  whom? — A.  By  the  Comptroller. 
In  fact  the  appointment  of  a  receiver  does  not  terminate  the  franchise ; 
it  can  only  be  terminated  by  the  expiration  of  the  twenty  years  or  by 
I)roceedings  against  the  bank. 

By  Mr.  Dicker  SON : 

Q.  You  have  no  statutory  autliority  to  cancel  your  certificate? — A. 
No,  sir. 

By  the  Chairman  : 

Q.  Under  the  prac^tice  of  your  office,  before  the  bank  aetually  com- 
mences business  they  have  to  make  a  preliminary  statement? — A.  It 
is  the  practice  as  soon  as  it  is  oi)en  for  work.  Sometimes  it  will  run 
thirty  days. 

I  want  to  correct  the  date  of  the  issuance  of  the  authority.  It  was 
July  30,  instead  of  June  30.  The  certified  copy  of  the  certificate  of 
authority  was  not  before  me. 

By  Mr.  Sperry  : 

Q.  I  was  wondering  how  it  happened  to  run  so  long? — A.  Sometimes 
they  do  not  open  for  business  for  several  months  after  they  receive 
authority. 

By  Mr.  Cox : 

Q.  When  the  application  was  made  t^  convert  it  into  a  national  bank 
was  there  anything  presented  to  the  office  to  show  the  condition  of  its 
assets?— A.  The  report  of  condition  of  June  12,  1875,  seems  to  be  the 
only  evidence  filed  with  the  Comptroller  as  to  its  condition. 

Q.  What  is  the  amount  of  real  estate  as  assets  of  the  old  State  bank 
as  reported?— A.  The  banking  house  property,  $90,000;  other  real 
estate,  $28,322.60;  mortgages,  $33,827.50. 

The  Chairman.  We  have  those  details  in  the  record  now.  (To  the 
w^itness.)  Please  pass  to  the  first  increase  of  stock  and  give  us  the  date 
of  It.— A.  The  correspondence  seems  Xo  have  begun  in  November,  1885, 
looking  to  an  increase  of  the  capital  iu  the  sum  of  $100,000.     At  that 


I 


8 


INA'KSTIGATION    OF    NATIONAL    BANKS. 


th.ic  tlic.  iiKTcase  (;..,ul(l  be  m,Mlc  by  tl...  vot..  by  llic  dim  tors  of  Hie 
asso,.,H  !o„  The  increase  did  „ot  take  i.la.-..  .u.tii  about  tl.e  Ist  of  May. 
1<SS(>,  when  It  was  iiKTea.se<l  to  .«200,(KK».  ^ 

Q.  So  that  the  lirst  increase  was  *2(K),000  in  May,  1886?— A    Yes 

«200  000  and  this  money  was  paid  iu  May  4,  1886,  and  the  ComntroUer 
cerUtied  lus  approval  in  May,  1886.    Here  is  the  certificate  of  thTcS 
as  to  the  increase  aiid  the  payment  of  the  $200,000,  and  here  is  the  cer- 

co^di^'i.rri*  r  S^rLSaS'r^^^^^ 

this  association  on  January  19,  188G.  ^  ^* 

By  Mr.  Gate: 

Q.  That  was  before  the  capital  was  increased  to  $200,000 1— A   That 
was  pending  the  application  for  aji  increase.  y^^fy^J^.L  nat 

By  the  Chairman  : 

^  ha^e  Sthalher^"  ''"^'^  ""'  *'"*'  ''""'»'*"'"  '"«'^'^'-^-  ^  ^  --^  I 
«f  ?.;  J^"^  ii  report  of  the  cx)ndition  made  shortly  afterwards?— A.  Copies 
up!%hTare'-^l' ml^r  ^""'^  ""*  '•''^''**«''  "'  *«  """-^  "^  --" 
at^il.'*""'""^  ^^'^  """^'^  "*^*''^  ^""'^  ""^  *^**  "'"*'  °"  '^al  estate  appears 

Mr.  Gate.  Ko  banking-house  property? 
The  Chairman.  No,  sir. 

r^u"  w™"  ^'^'^  ^^*  """l«  ten  years  afterward? 
Ihe  Witness.  Among  the  resources  no  real  estate  appears. 
By  the  Chairman: 

re^V^lf.  Tni*"'"!?  *>J-.i^»!:tgages?-A.  Ko  bonds,  no  mortgages,  no 
real  estate,  and  no  banking-house  property.  ^    ' 

+».*«?'''  T*"*'?  ''"y  explanation  attached  to  the  report  in  reference  to 

S  i  rViort  V.;t'fr*""*^  ''"■"  '"j"^"'e  *»'-"^l'  ^hTclJ^^eSnde^e 
tween  thrcomntmlw  «^f  A"  accordance  with  an  agreement  made  be- 
Z^tvZ^^tatflr^.    i^^  president  prior  to  the  conversion  of  the 

co^^rtrint.'t^ht'*grlr!^^^^^^^^  ^"^'^  ^^'*'  -*^^  ^'^-'^^  »>« 

By  Mr.  Walker: 

th?offlce*s*liS^  wh.T'is*!j''*  ''•;•  ""*'•"'  '''^^'^  y'*'^  *"-^  Wanks  printed  in 
We^e^n.  M  fJii  •  ''°''  *™'"  «"«  exa"'i''ation  to  another ?-A. 
we  Keep  no  blanks  showing  an  exam  ner's  work     Thev  arc  takou  »n 

ba^lk^s^Xe^s.    -^  ''"^''^'"'^  ^'^  ^''^^^^^  ^  *^^  attention  of  the 

Q.  Of  the  Comptroller's  office?— A.  Yes,  sir 
^?.  Do  you  have  in  your  office  a  book  or  any  form  of  record-  for  in 

can  b^  referredt"l'7,r'"^  ea<3h  one  of  the  examinations,  so  thXt 
A  "^^^^^Yf  ®^  to— A.  They  are  not  so  treated. 

fi.r^  ^*  J'^*  ""^^"^^^  **^'^"^  five  to  ten  times  as  much  work  to  treat 

SeZTen^^^^^^^  ^  ''''''  ^^^"^  accordi^g^Ttt  System 

l^have  spoken  of?-A.  m,  sir;  your  way  would  require  much  greater 


INVESTIGATION   OF   NATIONAL   BANKS.  9 

().  All  yon  would  have  to  do,  then,  would  be  to  enter  tlie  fio-ines? — 
A.  it  is  not  iinportniit  to  e<unpare  the  ainonnts  of  the  several  items  of 
this  year  with  the  aniomits  of  last  year.  The  princii>al  thin^-  is  to  find 
what  is  on  the  ledgers,  and  the  liabilities,  and  whether  the  resources 
are  worth  the  book  value.  What  you  want  to  get  at  is  the  a<itual  value 
and  character  of  the  assets  at  the  particular  time  when  the  examina- 
tion was  mad(^  There  might  be  several  items  which  would  change 
between  two  examinations,  but  it  does  not  indicate  the  legaUty  of  the 
transactions. 

Mr.  Cate.  I  would  like  if  the  Comptroller  would  fiirnish  the  state- 
ment of  the  examiner,  or  some  other  statement  showing  when  this  real 
estate  was  converted. 

The  Comptroller.  I  will  furnish  it. 

Keystone  Bank,  Philadelphia,  March  9th,  '74. 
To  the  Honorable  John  Jay  Kxox, 

Comptroller  of  the  Currency. 

Sir:  I  hereby,  in  behalf  of  the  stockholders  of  the  Keystone  Bank,  Philadelphia, 
make  application  for  a  national-bank  charter  under  the  national  currency  act,  with 
capital  stock  of  two  hundred  thousand  dollars,  with  privilege  to  increase  to  six  hundred 
thousand  dollars. 

This  bank  is  located  on  Chestnut  street  at  the  corner  of  Juniper,  directly  opposite 
the  United  States  Mint,  there  being  but  one  national  bank  west  of  Fifth  street,  and 
the  city  now  extending  westward  solidly  built  as  far  as  Fortieth  street,  a  distance 
of  about  four  miles,  and  northward  a  distance  correspondingly  great,  as  well  as  the 
new  city  buildings  being  erected  within  one  square;  the  rapidly  increasing  business 
in  the  vicinity,  together  with  the  growing  confidence  in  our  national  banks,  render  it 
desirable  that  the  operations  of  this  bank  be  conducted  under  a  national  rather  than 
a  State  charter . 

Yours,  respectfully, 

C.  M.  Cling  AN, 
President  Keystone  Hank. 

We,  the  undersigned  directors  of  the  Keystone  Bank,  unanimously  concur  in  the 
loregoing  application  for  a  national-bank  charter. 

iRVIN   H.   TORRENCE.  JOHN  C.   LUCAS. 

Thomas  Lewis.        H.  J.  Crump. 
Thomas  Allman.       \Vm.  Armstrong. 
John  K.  (Iould.        Hiram  L.  Holden. 


h.!!^^H  ?  ""'|f^«'gnfd,  directors  of '^  The  Keystone  Bank"  of  Philadelphia,  having 
been  duly  authorized  by  the  owners  of  two-thirds  of  the  capital  stock  of  said  bank 
tocnange  and  convert  said  bank  into  an  association,  and  to  make  the  necessarv 
rwll^""  *^.f  *i^!f/'''  "'''^^''  *^®  provisions  of  the  forty-fourth  section  of  the  act  of 
ilTu^TLn^  I  J^'^  f""*  *"*  Pyovide  a  national  currency,  secured  by  a  pledge  of 
nroved  ^iffrl^^  ??p^  '""/  ^'J  ^'T''^"^  ^"^  *^^  circulation  and  redemption  thereof,'^  ap- 
SJ^^l  m/i  l^L^U  S'  Ti  of  subsequent  acts  in  addition  to  or  amendatory  thereof,  do 
fif  1  tr^tl  l^M^^  Icdlowiug  certificate,  which  we  hereby  declare  we  are  author- 
FirVf  TV^^  "^  '''V*!?"r.  ""*  t^^"-^hii-<l«  of  tke  capital  stock  of  said  Kevstoue  Bank. 
Banrof  PhuSpMa'"  association  shall  be   -The  Keystone  National 

de?nli?M"V.  J!J?  ''''iJ^T?^^"^^^^^^^?  '^1^«"  ^>«  located  and  continued  in  the  citv  of  Phila- 

fs?ount  and^LlH^'^^'^.^'^t^"^'  and  State  of  Pennsylvania,  where  its  operations  of 
uiscount  and  deposit  are  to  be  carried  on. 

($20o'o00^'^^mrth^h\**'''''f  of  this  association  shall  be  two  hundred  thousand  dollars 
itJMwT^SldTtVe'^^^^  Ck''^  ^"^^^^  ^*'  ""''^  '''^  ^«^^-  «^^^^ 

hoXs  tWeormivlw/'./"^*^^  i""  order  that  the  said  Keystone  Bank  and  the  stock- 
noiaers  thereof  may  avail  themselves  of  the  advantages  of  the  aforesaid  act,  and  that 


10 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


11 


t!. 

On: 


ia> 


H«ff.^i   ,    i     +r  ^''''^  may  be  channred  and  converted  into  a  national  banking  asso- 
ciation  nnder  the  name  and  title  of  -  The  Keystone  National  Bank  of  Philadelphia  " 
In  witness  whereof  we  have  hereunto  set  onr  hands,  this  twenty-fifth  day  of  March 
eighteen  hundred  and  seventy -live.  "^       i»irtit.u, 

[SEAL.I  JoHx  C.  Lucas. 

[SEAL.]  H.  J.  Chump. 

[SEAL.]  Wm.  Armstrong, 

[seal.]  Irvix  H.  Torrexce. 


C.  M.  Clingan. 
Thomas  Lewis. 
Thomas  Allmax. 
Chas.  Williams. 


[seal.] 
[seal.] 
[seal.] 
[seal.] 


A. 


Karnes. 


Arthur,  Robert 

Allen.F.B 

A llmau,  Thomas 

Armstrong,  William 
BugbeeCo.,  (1.  W... 

Brintzenghoffer , 

Bartel8,tr:w 

Bum8,B.C 

Butler,  Rebecca,  Mrs 

Bewley.T.J 

Brenneman,  B.  F 

Beewer,  John 

Buck,  Daniel 

Bauer,  F 

Crump,  H,  J 

Chamberlain,  M 

Chapin,  Geo.  W 

Chapin,  Sarah  C 

Colket,  Coffin 

Carson,  R,  I 

Cooper,  W.  F 

Clingan,  Lewis  &  Co. 
Clingan,  Dr.  CM.... 

Craven,  Jno.V 

Dixon,  Thos.S 


Residence. 


Philadelphia. 
...do 


No. 
shares. 


— do 

...do 

...do 

...do.... 

— do  — ■ 

...do 

— do 

Lancaster I 

Philadelphia 

...do , 

...do  

...do  


Donagliy,  Walt 

Davi«lson.  Dr.  Sam'l . . 

Dixon,  George  B 

Damon,  A.  F 

Donnelly,  V.P 

Edar,M 

Excelsior  Div.  No. 
205,  Sons  of  Tem- 
perance. 

First  Nat.  Bank,  Cur- 
winsville. 

Field.s,  Geo.  F 

Freedly,  Jno.  K 

Fitzgerald,  Thomas, 
Cot 

Ficken,  Richard 

Folmer,  Mrs.  E.  H 

Gillinger,  Philip 

Gould  &■  Fischer 

Gibson,  C.E 

Gasslein,  J.  J 

Greer,  Wm.  R 

Graff,J.F 

Holden,  Lentz  «fe  Sail 

ade. 
Howell,  Zophar  C  . . . 

Howard,  James 

Holden,  Sarah  E 

Holden,  H.L 

Haines,  G.B 

Hickman,  M.  B 

Hopkins,  Edward  . . . 

HoUtrook.  Jno.  O 

Hopkins,  Mrs.  M 

Johnson,  Henry 

Jones,  S 

KerIin,I.N 

Keeney,  Thomas  M  . 

Kirbv.E.W 

Kirby,Mrs.E.  W.... 

K:rise,P.N 

Lucas  Bro 

Lewis,  Thomas 

Lewis,  Henry  R 

Lyons,  James  H 

Landi8,P.K 


Milton,  Pa 

Philad«^Iphia 

...do 

...do  

Columbia 

Philadelphia 

.-..do 

■  *  *  ■  UtJ   ■•.«•>•■««_• 

do 

do 

do 

....do 

do 

Wiliianisport,  Pa 
Philadelphia 


Philndelphia- 

...do  

...do  


New  York 

Milton,  Pa 

Philadelphia , 

--•do , 

Williani.si»ort,  Pa 
Pliiladeli»hia , 

...do 


WilliamM]>ort,  I'a . 

Philadelphia 

do 

Wiliianisport,  Pa . 
do 

Philadelphia 

AVest  Clie.Hter,  i'a 

Philadelphia 

do 


...do 

Muncy.  Pa 

Wiliianisport,  Pa 

Media.  Pa 

Philadelphia j 

...do ! 

...do I 

Lynchburg i 

Philadelphia 

...do... I 


...do  ... 
...do... 
...do... 


Names. 


20     Mellock,J.M 

5      Meyers,  George 

10      Morgan,  J  ames 

45      Murphy'sSon.s,  W.  F 
20      Matthew.s,  C.  T 

5  Matthews,  C.  T.,  Mrs 
20      Mitchell,  Thompson . 

10      Milnor,  Phoebe 

40     Merriman,  Hiram  . . . 

20     Mottatt.J.J 

50      Munroe,  D.  S 

20      Ma.hette,  E.V 

6  Murphy,  William 
10  Duke. 

5     McCuue,  Clement 

50     McConnell,A 

15  I    MeSJiane,  Manuel 

20  i    McMnllen,  W^ 

100  i    Norton,  CD 

20      Obdyke,B.P 

5      Omensetter,  R.  L 

40   I  Omensetter,  A 

60    !  (m',Geo.  H.  W 

10      Otto,  Jno.  A 

120      Pennell,W.H 

25      Patton,  .J  ames 

10      Paul,  HenrvS 

20     Riebel,  JoHeph 

30     Renninger,  H.  B 

:^0      Richie.  K.L 

;{0   I  Reynolds,  Joseph  H., 
10         cash. 

Stokes,  Richard  S  . . . 

Stang,  Peter 

Stradley,  John 

Stearns,  Mrs.  Sarah  C 

Steams,  J.  A 

Stearns,  Delia  E 

Stearns,  Enuna  A  . . . 

Stearns,  G.  L.  «fc  O.  R 

Sallade,  E 

I  Stewart,  Mrs.Marv-  E 

Spencer,  Charles  it  . 
I  Woo<l.  Wm.B 

Wood,  Maria  E 

AVeaver,  William 

Williams,  Cliarles 

Williams,  Mrs.  Mary 
Jann. 

Webb,  George 

W  hittaker,  William  M 

Wyman,  J,  C 

Wilson,  J.L 

Warner  &  Co 

White.  Devinney    &, 
Hetzneth. 

Watson.  J 

Whitman.  H.F 

AVheeler.  Mifflin 

Wel)b.  Mr.s.  E.  O.D... 

Torrence,  J.  H.,  ad- 
ministrator. 

Torrence,  J.  H 

Torrence,  Mrs.  Mar- 
garetta. 

Taylor,  J  ames 

Thojnpson.  Thomas  . . 

Vogel,T.K 


Residenoe. 


Jersey  Shore 

Philadelphia 

....do 

do 

.  — do .-...,.... 

— do 

Williamsport,  Pa  . 

lMiila<lelphia 

Williamsport,  Pa. 

Philadelphia 

AVillianisport,  Pa  . 

Philadelpnia 

do 


No. 
shares. 


.... UO  .....*•*••«•. 

do 

do 

..-.do 

....do 

do 

do 

■  »  •  -  W*  •>•-••>•..••• 

AVilliamsport,  Pa  . 

Pliiladelphia 

do 

do 

...do 


50 

80 

20 

5 

100 
20 
20 
20 

no 

10 
25 
10 
40 

200 
20 
60 
70 
40 
50 
10  I 
10  i 

5| 
50  I 

10 

10 

10 

5 
20 

5 
25 
30 
10 
100 
20 


AVilliamsport. 
Philadelphia. . 
— do 


....do 

do 

do 

Williamsport,  Pa  . 

do 

do 

.-..do 

....do 

do 

Philadelphia j 

East  Lynn,  Ct i 

Canton,  Pa j 

Canton, Pa I 

Williamsport,  Pa .' 

Philadelphia 

— do 


Pittsburg,  Pa 

Philadelphia 

— do 

...do 

...do 

-do 


...do 

— do 

Williamsport,  Pa  . 
Phila<lelphia 


Danville,  Pa  . . , 
— do 


Total. 


Philadelphia. 

--  do 

Philadelphia 


20 
20 
10 
20 
10 
10 
10 
35 
70 
50 
1 
50 
10 

10 
50 
25 
14 
50 
20 
1 
29 
50 
10 

100 

20 

10 

5 

120 
30 
50 

10 
10 
20 
31 

1 

1 

1 

1 
160 
10 
20 
10 
10 
20 
100 
10 

10 
100 
110 

10 
5 

40 

20 
10 
10 
20 
50 

69 
10 

10 
30 
20 


State  of  Pexnsylv.\nia,  County  of  Philndelplda,  ss: 

On  this  the  twenty-fifth  day  of  March,  A.  D.  1875,  personally  came  before  me,  a 
notary  public  of  said  county,  the  above  named  C.  M.  Clingan,  Thomas  Lewis,  Thomas 
Allm-in  Charles  Williams,  John  C.  Lucas,  H.  J.  Crump,  and  Wm.  Armstrong,  Irvin 
H  Torrence  directors  of  ''Th<'  Keystone  National  Bank  of  Philadelphia,"  to  me  well 
known,  who  severally  acknowledged  that  they  executed  the  foregoing  certificate  for 
the  purposes  therein  mentioned. 
^Witness  mv  hand  and  seal  of  office,  the  day  and  year  aforesaid. 

[notauial  seal.]  Wm.  F.  HARRi-nr, 


[Dr.  C.  M.  Clingan,  prest.    Joseph  B.  Wiswell,  cash'r.] 

Keystone  Bank,  1326  and  1328  Chestnut  street, 

Philadelphia,  March  23,  1875. 

Hon'ble  Jno.  Jay  Knox, 

Compt.  Currency,  Washington,  D.  C: 

Dear  Sir:  P^nclosing  a  copy  of  my  letter  of  19, 1  desire  to  ask  if  you  offer  any  ob- 

ioctions  to  a  change  in  this  title,  as  our  board  would  very  much  prefer  Keystone  Nt. 

Bank  to  Nt.  Keystone  Bank.     You  would  greatly  oblige  us  by  answering  this  and 

the  former  questions  so  that  I  may  state  your  answer  to  the  board  on  Thursday 


juoruing. 


Very  respectfully, 


J.  B.  Wiswell,  Cash. 


The  undersigned,  Charles  M.  Clingan,  president,  J.B.  AViswell,  cashier,  and  Thomas 
Lewis,  Thomas  Allman,  J.  C.  Lucas,  W.  Armstrong,  H.  J.  Crump,  directors  of  the 
Keystone  National  Bank,  organized  under  the  act  of  Congress  entitled  *^An  act  to 
pr<)vide  a  national  currency  secured  by  a  pledge  of  United  States  bonds,  and  to  pro- 
vide for  the  circulation  and  redemption  thereof,  "approved  June  3,  1864,  and  of  subse- 
quent acts  in  addition  to  or  amendatory  thereof,  do  hereby  certify  that  two  hundred 
thousand  dollars  have  been  jiaid  into  said  bank,  on  account  of  its  capital  stock,  as 
permanent  capital ;  that  the  residence  of  each  director,  and  the  amount  of  stock  of 
which  each  director  is  the  bona  fide  owner,  are  as  follows: 


Xame  of  director. 


CM.  Clingan 

Thomas  Lewis 

Thomas  Allman 

J.  C.  Lucas 

William  Armstrong j do 

H.  J.  Cnunp I do 

Irvin  H.  Torrence ! do 


Place  of  residence. 


Citv  of  Philadelphia. 
.....do  

.do 


Shares  of  stock. 


Sixtv  shares  (60). 

Thirty  shares  (30). 

Tensliares  (10). 

Twenty-live  shares  (25). 

Forty-live  shares  (45). 

Five  shares  (5). 

One  hundred  twenty  -nine  (129). 


4,000 


And  that  this  bank  has  in  good  faith  complied  with  all  the  provisions  of  said  act 
required  to  be  complied  with  before  receiving  authority  to  commence  the  business  of 
banking. 

C.  M.  Clingan,  President, 
J.  B.  Wiswell,  Cashier. 

Directors.— Thomas  Lewis,  Thomas  Allman,  Chas.  Williams,  John  C.  Lucas,  H.  J. 
Crump,  Wm.  Armstrong,  Irvin  H.  Torrence. 

State  of  Philadelphia,  County  of  Philadelphia,  ss: 

On  this  twenty-fifth  day  of  March,  A.  D.  1875,  before  the  undersigned,  a  notary  public 
ot  the  Counnonwealth  of  Pennsylvania,  residing  in  the  city  of  Philadelphia,  came 
C.  M.  Clingan,  president;  J.  B.  Wiswell,  cashier;  and  Thomas' Lewis,  Thomas  Allman, 
Chaa.  Williams,  John  C.  Lucas,  Wm.  Armstrong,  directors  of  the  Keystone  National 
Bank,  and  made  oath  that  the  foregoing  certificate  and  the  matters  and  things  therein 
set  lorth  are  true  to  the  best  of  their  knowledge  and  belief. 

Subscribed  and  sworn  to  before  me,  this  25th  day  of  March,  1875. 

[notabial  seal.]  Wm.  F.  Harrity, 

Notary  Public, 


12 


INVESTIGATION   OP   NATIONAI.   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


13 


SI' 


.. 


^^(^  tlio  Tiiid«Msijxiie«l,  storlxholders  of  the  Keystone  IJ.iuk,  located  in  the  eity  of 
IMiihulelphiji,  county  of  Philadelphiu,  State  of  Pennsylvjinia,  having  a  capital  of  two 
hundred  thousand  dolljirs  ($2(X),000)  do  hereby  nnthorize  and  cni])ower  the  directors 
thereof  to  <hano<>  jnid  convert  said  h.mk  into  a  national  banking  ass<>ciation  un<ler 
the  genera]  banking  law  of  the  United  States,  and  according  to  the  provisions  of  the 


to  and  amendatory  thereof;  and  we  do  also  authorize  the  said  directoi-s,  or  a  majority 
thereof,  to  make  and  execute  the  articles  of  association  and  organization  certificate 
required  to  be  made  or  contemplated  by  said  act;  and  also  to  make  and  execute  all 
other  i)apers  and  certificates  and  to  do  all  acts  necessary  to  be  done  to  convert  said 
Keystone  Bank  into  a  national  l)anking  association,  and  to  do  and  perform  all  such 
acts  as  may  be  necessary  to  transfer  the  assets  of  every  descrijition  and  character  of 
said  Keystone  Bank  to  the  national  banking  association  into  which  it  is  to  be  con- 
verted, so  that  the  said  conversion  may  be  absolute  and  complete ;  and  we  do  hereby 
assume  and  anthorize  the  said  directors  to  assume,  as  the  name  of  the  national  bank- 
ing association  into  which  the  said  Keystone  Bank  is  to  be  converted,  *'The  Key- 
stone National  Bank,"  and  we  do  hereby  appoint  C.  M.  Olingan,  Thomas  Lewi's, 
Thomas  Allman,  Charles  Williams,  John  C.  Lucas,  H.  J.  Crump,  Wm.  Armstrong,  I. 
H.  Torrence,  H.  L,  Holden,  who  are  now  the  directors  of  the  said  Keystone  Bank  to 
be  the  directors  of  the  said  Keystone  National  Bank,  to  hold  their  offices  as  such 
directors  until  the  regular  annual  election  of  directors  is  held,  pursuant  to  the  provis- 
ions of  said  act  of  Congress,  and  until  their  successors  are  chosen  and  qualified;  and 
we  do  hereby  authorize  the  said  directors  of  the  said  Keystone  Bank  to  continue  in 
office  the  officers  of  the  said  Keystone  National  Bank  or  to  appoint  or  elect  others,  as 
to  them  may  seem  best. 

In  witness  whereof,  we  have  hereunto  set  our  hands  and  written  against  our  names 
the  number  of  shares  owned  by  us,  respectively,  this  25th  day  of  March,  A.  D.  1875. 

Names  of  stockholders  and  number  of  shares  owned  by  each : 


Charles  M.  Cliiigan,  sixty  shares  (60). 

John  E.  Gould,  twenty  shares  (20). 

E.  W.  Kirby,  twenty-iive  shares  (25). 

Chas.  "Williams,  one  hundred  shares  (100). 

J.  C.  Wyman,  one  hundred  and  ten  shaies  (110). 

C.  T.  Matthews,  ten  shares  (10). 

Eliza  B.  Matthews,  ten  shares  (10). 

John  Goodyear,  thirty  shares  (30). 

Win.  Aniistronff,  forty-five  shares  (45). 

Thomsis  E.  lie wley,  twenty  shares  (20). 

Geo.  W.  Jiugbee  &  Co.,  twenty  shares  (20). 

Justus  A.  Mellick,  twenty  shares  (20). 

Thomas  Lewis,  thirty  shares  (30). 

Wm.  F.  Copper,  five  shares  (5). 

Geo.  H.  Oil  &.  Bro.,  fifty  shares  (50). 

H.  J.  Crump,  five  shares  (5). 

Phoebe  Milnor,  thirty-five  shares  (35). 

Peter  Stang,  ten  shares  (10). 

Warner  &.  Co.,  five  shares  (5). 

James  Morgan,  ten  shares  (10). 

B.  C.  Obdyke,  twenty  shares  (20). 

Robert  Arthur,  twentv  shares  (20). 

Wm.  B.  Wood,  ten  shares  (10). 

Maria  E.  Wood,  ten  shares  (10). 

Thomas  Allman,  ten  shares  (10). 

Samuel  Davidson,  ten  shures  (10). 

Thus.  Thompson,  thirty  shares  (30). 

Vincent  P.  Donnelly,  thirty  shares  (.30). 

Chas.  D.  Norton,  fifty  shares  (50). 

J.  V,  Bartels,  twenty  shares  (20). 

Clingau.  Lewis  <fe  Co.,  forty  slums  (40). 

Thos.  W.  Keeney,  ten  sljaies  (10). 

James  W.  Howard,  twenty  shares  (20). 

Wm.  McMullen,  fourteen  shares  (14). 

AVm,  H.  Pennell,  one  hundred  shares  (100). 

(JranvilleB.  Haines,  forty  shares  (40). 

Wm.  M.  Whitaker,  one  hnndred  slian^s  (100). 

Manuel  MeShain,  tweuty-tive  shares  (2."»). 

Geo.  F.  Field,  ninety -five  sliares  (95). 

James  Watson,  twenty  shares  (20). 

Wm.  F.  Murphy's  Son's,  twenty  shares  (20). 

The  above  is  correctly  copied  from  the 
Philad.,  June  14/75. 


James  J.  Mofiett.  fifty  share*  (50). 
Irvin  H.  Torrence,  adin.,  fifty  shares  (.'>0). 
Irvin  H.  Torrence,  sixty-nine  shares  (69). 
Margaret  R.  Torrence,  ten  shares  (10). 
Lucas  &  Brother,  twenty-five  sliares  (25). 

B.  F.  Biennenian,  fifty  shares  (50). 

C.  Colket,  one  hundred  shares  (100). 
Clement  McCiine,  ten  shares  (10). 
(ieo.  B.  Dixon,  twenty  shares  (20). 

T.  N.  Dixon  and  Geo.  B.  Dixon,  executors  and 

trustees  estate  Thos.  S.  Dixon,  one  hundred  and 

twenty  (120). 
James  Tayl«)r,  ten  shares  (10). 
Alex.  McConnell,  fifty  shares  (50). 
James  H.  Lyons,  one  hundred  shares  (100). 
Donashy  &  Walt,  twenty-five  shares  (25). 
J«weph  Butler,i)er  R.  T.  Butler,  forty  shares  (40). 
Horace  F.  Whitman,  ten  shares  (10).' 
Z<»i»har  C.  Howell,  two  hundred  shares  (200). 
John  A.  Otto,  ten  shares  (10). 
Charles  E.  Gibson,  one  hundred  and  ten  shares 

(110). 
Huam  L.  Holden.  seventy  shares  (70). 
Thoni])son  Mitchell,  ten  shares  (10). 
L.  L.  Stearns,  ten  shares  (10). 
Sarah  E.  Holden,  sixty  shares  (60). 
('has,  L.  Stearns,  G.  L'.  Stearns,  one  share  (1). 
J.  A.  Stearns,  one  share  (1) 
Sarah  C.  Stearns,  thirty-two  shares  (32). 
Emma  A.  Stear^is,  one'share  (1). 
Delia  E.  Stesirns,  one  share  (1). 
Holden,  Lentz  &  Sallada,  H.  L.  Holden,  Geo.  W. 

Lentz,  J.  Sallada,  three  hundred  and  twentv 

sliares  (320). 
Hiram  Men*i man,  twenty  shares  (20). 
Sain'I  Jones,  ten  shares  (10). 
M.  I'Mer,  thirty  shares  (30). 
Wm.  Weaver,  twenty  shares  (20). 
Carroll  E.  Monroe,  one  share  (1). 
John  Pat  ton,  fifty  shares  (.50). 
Henry  Johnson,  fifty  shares  (50). 


original  list  of  signatures. 


.J.  B.  WlSWELL, 

Cashier  Keystone  BTc. 


Articles  of  association. 

We,  the  undersigned,  directors  of  the  Keystone  Bank  of  Philadelphia,  having  been 
authorized  by  the  owners  of  two-thirds  of  the  capital  stock  of  said  bank  to  change 
and  convert  the  said  bank  into  a  national  banking  association,  under  and  according 
to  the  provisions  of  the  act  of  Congress  entitled  "An  act  to  provide  a  national  cur- 
rency, secured  by  a  pledge  of  United  States  bonds,  and  to  provide  for  the  circulation 
and  redemption  thereof,'"  approved  .June  3,  1864,  and  of  subsequent  acts  in  addition 
to  or  amendatory  thereof,  and  to  exectite  articles  of  association  do  hereby,  in  our 
own  behalf  andin  behalf  of  the  stockholders  whom  we  represent,  make  and  execute 
the  following  articles  of  association : 

1st.  The  name  and  title  of  the  association  into  which  the  said  Keystone  Bank  of 
the  city  of  Philadelphia  is  to  be  changed  and  converted  shall  be  the  Keystone  Na- 
tional Bank  of  Philadelphia. 

2d.  The  place  where  its  banking  house  or  office  shall  be  located,  and  its  operations 
of  discount  and  deposit  carried  on  and  its  general  business  conducted,  shall  be  the 
city  of  Philadelphia,  in  the  county  of  Philadelphia,  and  State  of  Pennsylvania. 

.3d.  The  board  of  directors  shall  consist  of  not  less  than  five  nor  more  than  eleven 
(11)  stockholders.  The  regular  annual  election  of  directors  shall  be  held  on  the  sec- 
ond Tuesday  of  January  of  each  year;  but  if  no  election  shall  be  held  on  that  day  it 
may  be  held  on  any  other  day,  according  to  the  provisions  of  the  tenth  section  of  the 
act ;  and  all  elections  shall  be  held  according  to  such  regulations  as  may  be  prescribed 
by  the  board  of  directors  of  the  association  not  inconsistent  with  the  provisions  of 
tiie  aforesaid  act. 

4th.  The  capital  stock  of  this  association  shall  be  two  hundred  thousand  dollars, 
to  be  divided  into  shares  of  lifty  (50)  dollars  each;  but  the  capital  maybe  increased, 
according  to  the  provisions  of  the  thirteenth  section  of  the  act,  to  any  sum  not  ex- 
ceeding six  hundred  thousand  dollars;  and  in  case  of  the  increase  of  the  capital  of 
the  {issociation,  each  stockholder  shall  have  the  privilege  of  subscribing  for  such 
number  of  shares  of  the  proposed  increase  of  the  capital  stock  as  he  may  be  entitled 
to  according  to  the  number  of  sluires  owned  by  him  before  the  stock  is  increased. 

5th.  The  board  of  directors  (a  majority  of  whom  shall  be  a  quorum  to  do  business) 
shall  elect  one  of  their  number  to  be  president  of  this  association,  who  shall  hold 
his  office  (unless  he  shall  become  disqualified,  or  be  sooner  removed  by  a  two-thirds 
vote  of  all  the  members  of  the  board)  for  the  term  for  which  he  was  elected  a  di- 
rector; and  they  shall  have  i)ower  to  elect  a  vice-president,  who  shall  also  be  a  mem- 
ber of  the  board  of  directors,  and  to  elect  or  appoint  a  cashier  and  such  other  officers 
and  clerks  as  may  be  required  to  transact  the  business  of  the  association;  to  fix  the 
salaries  to  be  paid  to  them,  and  continue  them  in  office  or  to  dismiss  them,  as,  in 
the  opinion  of  a  majority  of  the  board,  the  interests  of  the  association  may  demand. 

They  shall  also  have  power  to  define  the  duties  of  the  officers  and  clerks  of  the 
association,  to  require  bonds  for  them,  and  to  fix  the  penalty  thereof;  to  regulate 
the  manner  in  which  elections  of  directors  shall  be  held,  and  to  appoint  judges  of 
the  elections ;  to  provide  for  an  increase  of  the  capital  of  the  association,  and  to 
regulate  the  manner  in  which  such  increase  shall  be  made ;  and  generally  to  do  and 
perform  all  the  acts  that  it  may  be  legal  for  a  board  of  directors  to  do  under  the  act 
aforesaid ;  and  they  shall  also  have  the  power  to  make  all  by-laws  that  it  may  be 
proper  and  convenient  for  them  to  make  under  said  act  for  the  general  regulation 
of  the  business  of  the  association  and  the  entire  manjigement  and  administration  of 
its  affairs:  which  by-laws  may  prohibit,  if  the  directors  shall  so  determine,  the 
transfer  of  stock  owned  by  any  stockholder  who  may  be  liable  to  this  association, 
either  as  principal  debtor  or  otherwise,  without  the  consent  of  the  board. 

6th.  This  association  shall  continue  for  the  period  of  twenty  years  from  the  date 
of  the  organization  certificate,  unless  sooner  dissolved  by  the  act  of  its  stockholders 
owning  at  least  two-thirds  of  its  stock,  who  may  dissolve  and  close  up  the  associa- 
tion in  such  manner  as  they  may  deem  to  be  for  the  interest  of  the  stockholders  aaid 
creditors  of  the  association,  but  subject  to  the  restrictions,  requirements,  and  pro- 
visions of  the  act. 

7th.  These  articles  of  association  may  be  changed  or  amended  at  any  time  by  stock- 
holders owning  a  majority  of  the  stock  of  the  association  in  any  manner  not  incon- 
sistent with  the  provisions  of  the  act,  and  the  board  of  directors  or  any  three  stock- 
holders may  call  a  meeting  of  the  stockholders  for  this  purpose. 

In  witness  whereof,  we,  the  directors  aforesaid,  for  ourselves  as  such  directors  and 
m  behalf  of  the  stockholders  of  the  Keystone  Bank,  have  hereunto  set  our  hands,  this 
twenty-third  day  of  March,  eighteen  hundred  and  seventy-five. 

Thomas  Lewis. 

TlI().MA!>   AlJ-MAX. 

C'liAs.  Williams. 
John  C.  Ltcas. 

H.  J.  CUUMP. 

Wm.  Akmstroxg, 


14 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


15 


•:■,.  i 


'.a: 


I  certify  the  forcjroiiijr  to  be  a  true  copy  of  the  original  articles  of  association  of 
the  Keystone  National  Bniik,  and  that  such  original  is  duly  stamped  with  a  —  cent 
revenue  stamp  for  each  piece  of  ])aper  on  which  it  is  contained. 

Dated  Philadelphia,  March  25th,  1875. 

TuoMAS  Allman, 

.   .  J  Fresidmt  pro  tern. 


[Dr.  C.  M.  Clingan,  pres't.,  Joseph  B.  Wiswell,  cash'r.] 

Keystone  Bank,  1326  and  1328  Chestnut  Street, 

Philadelphia,  Apl.  3,  1875. 
Hon^ble  Jxo.  Jay  Knox, 

Compt.  of  the  Cmrency,  Washn. : 
Dear  Sir  :  May  I  trouble  you  to  send  me  a  copy  of  the  ^'  Free  Banking  Law,"  to 
gether  Avith  the  necessary  blanks  by  which  this  bank  may  be  converted  into  a  Natl- 
We  already  have  blanks  sent  us  last  year,  but  presume  these  will  not  do,  or  at  least 
our  board  seem  to  have  doubts  thereupon.     I  am  sorry  thus  to  trouble  you,  but  con- 
sider it  best,  as  it  may  save  annoyance  hereafter. 
Very  respectfully, 

J.  B.  WiswELL,  Cash. 


Philada.,  No.  520  Walnut  St., 

^  ,  ^  April  '27th,  1875. 

Thos.  Allman,  Esq., 

PrcH.  Kejf stone  BanV: 

My  Dear  Sir:  Your  favor  of  24th  inst.,  in  which  you  inquire  if  the  lcgislati(m  r»f 
this  State  to  facilitate  the  conversion  of  State  banks  into  national  banks  is  still  in 
force,  is  received. 

In  reply  to  yt)ur  question,  I  have  to  say  that  the  enabling  statute  of  this  State  has 
been  made  perpetual  by  the  2nd  sect,  of  the  act  of  .July  lOth,  1866,  Pamp.  Laws  of 
1867,  page  1362.  The  original  act  of  Augt.  22,  1864,  P.  L.,  977,  contained  a  provision 
that  any  bank  intending  to  make  a  conversion  shall  notify  the  State  treasurer  of  its 
election  to  do  so  on  or  before  the  1st  day  of  Jan'y  next  (1865),  which,  as  a  conse- 
quence, rendered  the  act  of  no  avail  after  that  date.  By  an  act  approved  Feb'y 
28th,  1865,  P.  L.,  p.  6,  the  time  for  such  notification  was  extended  to  Jan'y  1st,  1866 
and  by  the  act  of  July  19th,  1866,  above  referred  to,  it  was  extended  to  Jan'v  1st' 
1867.  The  second  section  of  this  act  also  made  it  unnecessary  thereafter  to  "make 
supplements  to  the  original  act  for  the  purpose  of  extending  its  existence  by  mak- 
ing the  act  perpetual  in  these  words :  ''  If  hereafter  anv  bank  of  this  Commonwealth, 
at  a  general  meeting  of  the  stockholders  hehl  for  that  purpose,  shall  elect  to  sur- 
render its  charter,  to  become  an  association  for  carrying  on  the  business  of  banking 
under  the  laws  of  the  United  States,  then  all  the  privileges  and  immunities  of  the 
act  to  which  this  is  a  supplement  shall  be  extended  to  it." 

Therefore,  under  this  statute,  you  are  able  to  complete  the  con  version  of  your  bank 
into  a  national  bank  when  you  have  complied  with  the  acts  of  Congress  upon  the 
subject. 

I  am,  very  respectfully,  yours,  etc., 

M.  Arnold. 


„        -  ,    ,^  Philadelphia,  May  6,  1874. 

Hon.  John  J.  Knox, 

Comptroller  of  the  Currency: 

Dear  Sir:  I  hereby  inclose  an  application  for  a  national-bank  charter  under  the 
national  currency  act. 

This  application  has  not  been  forwarded  (its  date  being  Mar<th  9,  1874)  owing  t«» 
the  doubt  regarding  the  action  of  Congress  concerning  tiuancial  matters. 

As  matters  now  stand,  we  can  not  expect  to  secure  circulation  from  you  other  than 
m  exchange  tor  sus])ended  notes  obtained  by  us. 

Of  course  we  <ran  not  as  a  bank  secure  a  national  charter,  but  we  propose  as  stoc^k- 
holders  individually  of  the  Keystone  Bank  to  organize  with  your  permission  under 
the  national  currency  act. 


The  stockholders  of  the  Keystone  Bank  having  consented  to  sell  or  rent  us  their 

buUding  for  lianking  purposes.  •     , ,     .         ^  ■   i-         1- 

Will  you  please  have  forwarded  to  me  the  proper  forms  m  blank,  and  information 
necessary  for  our  organization  ? 

Very  truly,  yours,  etc.,  ^_  ^_  ^^^^.^^_ 


[Thomas  Allman,  Pt.    Joseph  B.  Wiswell,  cashier,  late  receiving  teller,  Girard  Bank.] 

Keystone  Bank,  1326  and  1328  Chestnut  street, 

Philadelphia,  June  14,  1875. 

Hon.  Jno.  Jay  Knox,  ^    ..     *       ^  ^ 

Comptroller  of  the  Currency,  Washington,  DC: 

Dear  Sir  :  Herewith  please  find  the  additional  papers  required  necessary  to  com- 
plete our  application  for  conversion. 

Please  inform  us  at  your  earliest  convenience  if  they  are  correct.  If  so,  we  will 
then  remit  the  fifty  thousand  dolls.  U.  S.  bonds,  $50,000. 

Respectfully,  ^    «    -.^r  ^    i 

J.  B.  Wiswell,  Cash. 


Philadelphia,  2nd  Congressional  Dist.  of  Pa., 

June  18,  1875. 

Hon.  John  Jay  Knox, 

Comptroller  of  the  Currency: 
Dear  Sir:  The  Keystone  Bank  of  this  city  having  made  application  for  conversion 
from  a  State  to  a  national  bank,  I  am  pleased  to  inform  you  that  I  have  never  heard 
the  stability  of  the  bank  questioned  and  I  believe  it  to  be  sound  and  good.  The  offi- 
cers are  well-known  business  men  of  high  standing,  and  the  location  of  the  bank  is 
in  a  populous  neighborhood  and  calculated  for  the  convenience  of  a  large  number  of 
business  people. 

I  am,  very  respectfully,  yours, 

CiiAS.  O^Neill. 


[Ths.  Allman,  president;  Joseph  B.  Wiswell,  cashier,  late  receiving  teller,  Girard  Bank.] 

Keystone  Bank,  1326  and  1328  Chestnut  Street, 

Philadelphia,  June  18,  1875. 
Hon.  J.  J.  Knox, 

Compt.  Currency  J  Washn.: 
Dear  Sir  :  Your  favor  of  15  was  duly  reed.    Your  reference  to  office  letter  of  Mch. 
24  to  which  you  call  our  attention  is  for  a  letter  from  our  member  of  Congress,  which 
please  find  herewith  inclosed. 
Respectfully, 

J.  B.  Wiswell,  Cashier. 


[Ths.  AUman,  president ;  Joseph  B.  Wiswell,  cashier,  late  receiving  teller,  Girard  Bank.] 

Keystone  Bank,  1326  and  1328  Chestnut  Stre^.t, 

Philadelphia,  June  24,  1875. 
Hon.  J.  J.  Knox, 

Compt.  Currency,  Washn.,  D.  C: 
Dear  Sir  :  Your  favor  of  15th  inst.  stating  that  you  had  "  received  our  letter  of 
the  14,  containing  authority  for  conversion  of  your  bank  into  a  Nt.  bank,  and  oath 
of  directors  for  the  proposed  Keystone  Nt.  Bk.  of  Philad.,  &c.,  &c.,  and  that  you 
had  written  to  the  governor  of  Penna.  in  regard  to  the  enabling  act,  and  also  calling 
our  attention  to  your  letter  of  March  24,  which,  we  presume,  had  reference  to  the 
necessity  of  a  letter  from  our  member  of  Congress,"  Avhicli  letter  we  mailed  you  on 
the  18th  inst.,  and  since  then  Ave  have  none  of  your  fav^ors.  If  (uir  papers  and  state- 
ment are  satisfactory  we  will  immediately  forw^ard  the  $50,000  U.  S.  bonds  to  deposit 
tor  circulation.  The  1st  July  will  be  a  convenient  time  for  this  bank  to  make  the 
change,  if  by  that  time  we  have  your  authority. 
Respy.,  your  obt.  st., 

J.  B.  Wiswell,  Cash, 


'  r 


Wl 


w 


itp 


m : 


^^  INVESTIGATION   OF   NATIONAL   BANKS. 

[Thomas  AUman.  president;  Joseph  JB.  Wiswell,  cashier,  late  receiving  teller  Girard  Bank.] 

Keystone  Bank,  1326  and  1328  Chestnut  Street, 

TT^      ,  ^       ,,  Philadelphia,  July  23rd,  1875, 

Hon.  John  Jay  Knox,  >     '^' 

Comptroller  of  the  Curi-ency,  Washington,  D.  C.  : 

Dear  Siu:  I  have  the  honor  to  acknowledge  the  receipt  of  vour  favor  of  2l«f  i,i«f 

.J^\t  ^'"''^'I'S  «{/^*'  ?>o»rd  of  directors,  held  this  niorniug,  your  letter  was  received 
and  the  proyisos  therein  contained  were  unanimously  accepted  received 

1  will  he  in  Washington  early  next  week  with  thehonds 
Very  respectfully,  your  obdt.  servt., 

Thomaj?  Allman, 

Freat. 

No.  2291.]  Treasury  Department, 

UEEICE   OF   (:!OMPTK(>LLf:R  OF  THE   CURRENCY, 
wi,«  1  X    ..    X  Washington,  Jubf  30th,  1875. 

Whereas  by  satisfactory  evidence  presented  to  the  undersicri.ed  it  has  been  madA 
to  appear  that  the  Keystone  National  Bank  of  Philadelphi a"  n  the  dtv  o^Phfl^ 
delphia,  m  the  county  of  Philadelphia,  and  State  of  PeXyvTnia  has  l^eLi  d  Iv 
organized  under  and  according  to  the  requirements  of  the  ac^  of  ConZ 
*' An  act  to  provide  a  national  currency  secured  by  a  pled-e  of  Unitrr^SAfw^^^^ 
and  to  provide  for  the  cnrculation  and  'redemptioif  Thereof '\npprv^  June  S^«^' 
and  has  complied  with  all  the  provisions  of  sLid  act  requked^^^^^  wUh 

before  commencing  the  business  of  banking  under  said  act :  ^«n^l>li«^  with 

i£  =!^r^/^;^^^^;-^^^^  i«  authoriz^/^ilrtii^:- 

^^In  testimony  whereof,  witness  my  hand  and  seal  of  oflire,  this  mh  ilay  of  July. 

J  NO.  Jay  Knox, 

Comptroller  of  the  Currency. 


INTESTIGATION   OF   NATIONAL   BANKS. 


17 


John  C.  Lucas,  president;  G.  W,  Marsh,  cashier.J 

Keystone  National  Bank,  1326  ani»  1328  Chestnut  St 
Hon.  H.  W.  Cannon,  Philadelphia,  Nov.  5,  'l8S5. 

Comptroller  of  the  Cnrrcncif: 

charter  and  what  forms  must  be  obselCd  in  so  doTn-^         ^  ""^''  ""' 

lour  answer  will  oblige,  yours  truly,  **  * 

John  C.  Lucas,  Prest. 

[John  C.  Lucas,  president;  G.  W.  Marsh,  cashier.] 

Keystone  National  Bank,  1326  and  1328  Chestnut  St., 
T>wAT»  Rtt,.  rkw-       +  1.  .  Philadelphia,  Mch  27,  ^1886. 

t^^ZlTiim^C^  Department  in  November,  1885,  it  was  the  intention  to  increase 
tne  capital  $100,000.     Subsequently  it  was  determined  to  make  the  increase  ^^imS 
Mav^  T^l  tbe  amount  paid  in  four  installments,  the  last  of  wh  c^  viirbe  dm'Z 
fl'^kTrL'm'itterbrr.*^^^  '^  ^"'  ^^'^^"^^^^'^  *^^  ^'^^"^'  ^^^"^^^  ""  "llinVblank 
In  makmg  report  on  1st  inst.,  we  supposed  we  slioidd  include  the  amount  of  capi- 


tal then  paid  in,  the  $121,260.50  being  amt.  reed,  on  acct.  of-  the  $200,000,  new  capital 
subscribed.  *^ 

,.i^>^^^y  ^*i:im"nJJ\^  ^^^•!°''®  7'"  ^!  received,  and  we  will  ask  authority  to  issue  cer- 
tihcates  lor  $200,000  additional  capital. 

If  we  are  required  to  comply  with  any  other  form,  we  shaU  b«  pleased  to  do  as  in- 
structed by  you.  ^ 
Very  respectfully, 

rr    u       \T    n   u  ^^^'  C.  Lucas.  Prest 

To  Hon.  V.  P.  Snyder,  ' 

Acting  Comptroller,  WasUngton,  D.  G, 


[John  C.Lucaa,  president;  G.  W.  Marsh,  cashier.] 

Keystone  National  Bank,  1326  and  1328  Chestnut  Street, 

Philadelphia,  May  4, 1886. 
Dear  Sir:  I  enclose,  properly  signed,  etc.,  blank  in  regard  to  increase  of  capital. 
Very  respectfully,  *  I'ivai. 

To  Comptroller  of  the  Currency,  ^*  ^'  ^^^='  ^' 

Washington,  D.  C, 


2291. 


Keystone  National  Bank  of  Philadelphia, 

To  the  Comptroller  of  the  Currency,  *^'  ^^^' 

Washington,  D.  C: 

i>/V''i¥'r?'^'/J'"*'?^'^*^''**^®  ^'^P^*^^  «*«^k  of  "Tlie  Keystone  National  Bank  of 
ir.,li!r  TxJ*  1  f«uf '•  "If *^«s«*l'  pursuant  to  the  articles  of  association  of  said  bank, 
approved  May  1,^1886  in  the  sum  of  two  hundred  thousand  dollars,  all  of  which  has 

Irdi^^thousTuVcltr.^^^"-^^  ^^^^*^^  «^^^^  ''  -^^  bank  now  amounts  to  four 
[Seal  of  bank.]  •  q^   ^    ^^^^^  ^^j^^ 

i>TATEOFFKNN'A,  County  of  Philadelphia,  ss: 

^tl'f^'Ji>'J^f'''h  cashier  of  ''The  Keystone  National  Bank  of  Philadelphia,"  in  the 
State  of  Penn'a,  do  solemnly  swear  that  the  foregoing  certificate  by  me  subscribed  is 

G.  W.  Marsh,  Cashier. 
Subscribed  and  sworn  to  before  me,  this  4th  day  of  May,  1886. 
[Ofhcial  seal  of  officer.  J  johk  W.  Barron, 

Notary  Public, 

No,  2291. 

Treasury  Department, 

Office  of  Comptroller  of  the  Currency, 

WT,..«         ^.  ^^  .  Washington,  D.  C,  May  5,  1886. 

rci  cv  th^f  f  *f  f^*^*P/y  notice  has  been  transmitted  to  the  Comptroller  of  the  Cur- 

Penn^   h « «  l       ^-^'^^^''^  stock  of  ''The  Keystone  National  Bank  of  PhUadelphia,'' 

I  aSanTe  wffi,'?^''^^'^^.'^  *^^  "J"'  ^^  *^**  ^^nd^xtdi  thousand  dollars  ($200,000),  in 

^h^wt^k  amoi^nfnf  ^''^r-'^''"  ^^  ^^*  ^^  Congress  approved  May  1,  lg»6,  and  that 

^tocHf  Lid  CV  .  'f''^ '''^''T^  has  been  paid  in,  and  that  the  paid-up  capital 

'  ($400,W0) :  amounts  to  the  sum  of  four  hundred  thousand  dollars 

I  Ba^roVUnade7nYi« ''^^^^^^^  ^}^.  *Hf  "^?^*^^  "*^i^^  «^  "^he  Keystone  National 
liimdied  f  1^  .,  P  5  ^'/  ^f?I®^^^**'  ^'^^  ^^^^  increased  a«  aforesaid  in  the  sum  of  two 
•sai    ba  k  t  aTai^^^^^^         ($200,000) ;  that  said  increase  of  capital  has  been  paidinto 

I  *-rf  "^r  cti^^^^^^^^  -^  *^^**^«  -^-—  o? capital 

[4  al  ol^ComnZ^lr  .^^'^""*«  ^^^^^^  ^^  ^^^^^1  signature  and  seal  of  office. 

^        ^aCI.J  yf^   j^^   TRENHOLM, 

3790 2  Comptroller. 


m 


18 


INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


19 


'iI'M:; 


i^ll 


11 


■;'|lt; 


TESTIMONY  OF  ANDREW  J.  SARDEN. 

Andrew  J.  Sarden,  sworn  and  examined. 

By  the  Chairman: 

Q.  Where  do  you  live?— A.  In  Pliihidelphia,  at  Kirkbridge,  Brides 
bni'g. 

Q.  What  is  your  present  occupation? — A.  1  am  in  the  office  of  Boyd 
&  Company. 

Q.  In  what  capacity  ? — A.  Assistant  bookkeeper  and  collector. 

Q.  What  is  your  age? — A.  Twenty  years. 

Q.  Were  you  ever  employed  in  tlie  Keystone  National  Bank  in  any 
capacity? — A.  Yes,  sir;  I  was  em])loyed  in  that  bank  seven  years. 

Q.  Diuing  what  time?— A.  Fiom  18.S4  to  1891. 

Q.  Were  you  there  at  the  time  of  the  closing  of  the  bank? — ^A.  Yes, 
sir;  I  was  there  when  the  bank  closed. 

Q.  In  what  capacity?— A.  For  the  first  live  years  I  had  the  corre- 
spondence, and  the  last  two  years  I  was  the  individual  bookkeeper. 

Q.  You  kept  the  individual  ledger  ?— A.  I  kept  the  individual  ledger, 
the  accounts  under  the  letters  of  '^  A  to  G"  of  the  names. 

Q.  Of  course  you  knew  the  officers  of  the  bank? — A.  I  did. 

Q.  And  you  knew  what  books  the  bank  kept?— -A.  I  knew  all  those 
that  came  within  my  knowledge  and  observation. 

Q.  The  bank  kept  a  general  ledger? — A.  Yes,  sii*;  I  know  there  was 
a  general  ledger,  but  I  knew  nothing  a])out  it. 

Q.  There  was  an  individual  ledger? — A.  Yes,  sir. 

Q.  And  this  was  kept  in  two  or  three  forms? — A.  It  was  kept  in 
three  different  forms. 

Q.  Then  there  were  the  books  of  the  original  entries  kept  by  the  tel- 
lers?— A.  Yes;  they  had  other  books.  We  posted  from  the  check  and 
deposit  slips,  except  the  discounts  and  foreign  collections,  which  were 
posted  from  the  discount  clerk's  books. 

Q.  Most  of  your  work  was  done  from  the  check  and  deposit  ac 
counts? — A.  Yes,  sir. 

Q.  Did  you  know  of  the  existence  of  any  books  other  than  the  reg:- 
ular  books  of  the  bank? — A.  Ko;  not  in  any  particular  direction. 

Q.  Have  you  heard  since  the  failure  that  there  were  a  set  of  books  in 
which  false  entries  were  made,  intentionally  or  otherwise? — A.  I  knew 
before  the  bank  closed  that  there  were  such  books. 

Q.  What  was  the  character  of  the  entries  in  them? — A.  Mr.  Law 
rence  kept  them  and  he  put  down  the  names  and  the  amount,  and  in 
another  part  he  had  provided  for  increasing  balances.  He  put  them 
down  likewise. 

Q.  How  were  those  amounts  decreased  on  the  ledger? — A.  By  rub 
bing  them  out  or  making  false  charges. 

Q.  Were  any  of  those  entries  made  in  the  ledger  of  which  you  hnd 
charge? — ^A.  Yes. 

Q.  By  whom? — A.  According  to  the  handwriting  I  believed  they 
were  made  by  Mr.  Lawrence. 

Q.  You  did  not  make  them? — A.  No. 

Q.  You  have  known  of  such  entries  being  nmde? — A.  Yes,  sir;  «»| 
number  of  them. 

Q.  In  whose  handwriting  were  those  entries? — A.  in  the  hanu 
writing  of  Mr.  Lawrence. 

Q.  What  is  his  name? — A.  Charles  Lawrence. 


Q.  What  was  his  relation  to  the  bank? — A.  He  had  charge  of  the 
cash  book  and  the  general  ledger,  and  tor  the  last  year  or  two  he  was 
assistant  cashier. 

Q.  Where  is  he  now? — A.  He  is  in  Moyamensing  Piison. 

Q.  He  was  put  on  trial  and  convicted  ? — A.  Yes,  sir. 

Q.  Where  were  those  books  kept  ? — ^A.  I  saw  them  by  accident.  That 
w  as  how  I  knew  it. 

Q.  You  did  not  keep  them  yourself? — A.  No,  sir;  he  kept  them  in  a 
drawer  of  his  desk. 

Q.  Did  you  see  them  long  enough  to  see  in  whose  handwriting  they 
^yere? — A.  I  saw  him  make  one  entry.  It  was  the  John  Bardsley  entry 
for  $40,000  or  $50,000.  Mr.  Marsh  came  to  me  and  said  that  Mr.  Drew 
was  coming  back;  and  Mr.  Marsh  asked  if  I  could  not  come  down,  and 
if  I  would  not  rub  out  the  balances,  and  I  did*  not  say  yes  or  no.  He 
turned  away  and  I  went  and  told  Mr.  Lawrence  about  it  and  said  that 
1  would  not  do  it.  He  said  that  he  would,  and  he  went  back  and  made 
the  entries  "  J.  B.  $40,000  or  $50,000." 

Q.  The  memorandum  I  have  is  that  the  change  was  made  from 
$94,000. — A.  It  was  somewhere  about  $90,000. 

Q.  That  was  a  change  of  the  ledger  that  diminished,  apparently,  the 
liability  to  Bardsley  to  that  amount? — A.  Yes,  sir. 

Q.  Do  you  know  of  any  other  instance  w^here  such  a  memorandum 
was  made  in  this  book  ? — A.  No,  sir. 

Q.  Did  you  ever  see  the  books  in  Mr.  Marshes  i)ossession  ? — A.  I  never 
did  except  one  night.  I  was  there  one  night  a  little  late  tixing  up  sonie 
of  my  work  on  which  I  was  behind.  They  had  e^terything  closed  up 
from  the  Chestnut  street  side.  They  were  going  over  the  accounts  that 
night  and  I  saw  the  books.  They  were  getting  leady  to  alter  them,  and 
I  saw  them,  as  he  had  a  couple  lying  on  the  desk  alongside  of  the  ledger. 

Q.  Can  you  state  what  date  that  was? — A.  I  have  no  idea. 

Q.  How  long  was  it  before  the  bank  broke? — A.  I  haven't  any  idea. 
It  was  shortly  before  I  took  the  ledger,  because  I  was  going  to  make  a 
trial  balance  and  Mr.  Marsh  would  not  allow  me  to  do  so. 

By  Mr.  Walker  : 

Q.  Did  you  testify  about  this  matter  on  the  trial? — ^A.  I  was  sub- 
poenaed, but  I  did  not  testify. 

Q.  Were  there  others  who  testified  to  these  same  facts  in  that  trial? — 
A.  I  do  not  think  so.     There  was  no  trial,  because  he  plead  guilty. 

Q.  He  plead  guilty  in  doing  these  things? — ^A.  Yes,  sir. 

By  the  Chairman  : 

Q.  Could  you,  by  an  examination  of  the  individual  ledger  or  ledgers, 
tell  what  entries  had  been  made  from  time  to  time  in  Mr.  Lawrence's 
handwriting,  and  would  you  be  able  upon  inspection  of  those  books  to 
determine  where  they  were  falsified?— A.  I  think  I  could  in  most  cases, 
for  I  am  tamiliar  with  his  handwriting. 

Q.  You  discovered  the  true  balances  after  taking  the  ledger?— A.  No, 
he  did  not  alter  them,  only  at  two  certain  periods. 

Q.  I  understand  you  to  say  that  shortly  after  you  took  the  individual 
ledger  you  proposed  to  take  off  a  trial  balance  and  Mr.  Marsh  would  not 
pernut  ycm  to  do  it.  Did  you  learn  that  there  w^ere  forced  balances  on 
tnat  book?— A.  We  all  had  a  sort  of  general  idea  that  things  were 
wrong.  ^^ 

By  Mr.  DiCKERSON: 
Q.  You  had  inference,  but  no  knowledge?— A.  Yes,  sir. 


M 


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20 


INVESTIGATION    OF    NATIONAL    BANKS. 


UrSTESTIGATION   OF    NATIONAL    BANKS. 


21 


Q.  From  the  informatiou  you  had,  you  came  to  the  conclusion  things 
were  wrong? — A.  I  suppose  I  could  have  found  out. 

Mr.  Walker.  Ask  him  when  he  first  communicated  these  facts  to 
anyone. 

By  the  Chairman  : 

Q.  After  that  one  time,  had  you  discovered  that  Lawrence  was  the 
individual  who  was  making  changes  in  the  balances  on  your  book f — A. 
I  suppovse  when  the  examiner  came  in  1  did. 

Q.  Mr.  Walker  desires  to  be  informed  as  to  when  you  first  communi- 
cated these  facts  to  anybody? — A.  As  soon  as  I  found  them  out  I  told 
Mr.  Lawrence  about  it,  and  he  said  it  was  all  right. 

By  Mr.  Walker  : 

Q.  How  long  was  it  after  you  discovered  these  facts? — A.  I  suppose 
it  was  when  the  examiner  came. 

Q.  You  must  know  somewhere  approaching  the  time  when  you  first 
discovered  these  facts.  Was  it  three  months  or  six  months? — A.  It 
was  inside  of  six  months. 

Q.  Can  you  state  the  date  any  closer  than  that? — ^A.  I  do  not  know 
that  I  could.    I  have  no  recollection  about  it. 

Q.  Would  an  examination  of  the  books  enable  you  to  fix  the  time 
more  accurately  as  to  when  you  discovered  it? — A.  I  guess  I  discovered 
whose  handwriting  it  was  previous  to  that  time. 

Q.  When  did  you  discover  that  Lawrence's  handwriting  was  in  the 
balances? — A.  I  do  not  remember.  I  suppose  that  if  I  saw  the  books 
I  could  tell  when  Drew  came  to  make  the  alterations. 

By  Mr.  Dickerson  : 

Q.  Did  Lawrence  make  any  entries  in  his  own  handwriting? — A.  He 
made  alterations.    They  were  all  starred,  every  one  of  them. 

By  Mr.  Walker  : 
Q.  By  Lawieuce? — A.  Yes,  sir;  the  star  is  a  double  entry.     There  is 
first  a  debit  and  a  credit,  and  a  star  was  to  enable  him  to  tell  them. 

By  Mr.  Cox : 

Q.  Were  you  present  when  the  examiner  came,  after  you  had  discov- 
ered these  false  entries? — A.  When? 

Q.  When  the  examiner  came  to  examine  the  bank? — A.  I  was  always 
there. 

Q.  What  books  did  he  use  in  making  these  examinations;  the  books 
on  which  false  entries  had  been  made? — A.  He  used  the  little  pass 
book  to  put  the  amount  down  in. 

By  the  Chairman  : 
Q.  What  books  of  the  bank  did  he  use? — A.  The  individual  ledger. 

By  Mr.  Cox : 

Q.  Were  there  false  entries  on  that  book? — A.  Yes,  sir. 

Q.  Did  the  examiner  ever  inquire  of  you  in  legard  to  those  entries? — 
A.  No,  sir. 

Q.  Did  you  hear  any  inquiry  made  about  that  in  anyway? — A.  He 
did  not  examine  the  ledgers  himself,  but  his  assistants  did.  Mr.  Tren- 
holni  was  there  and  his  nephew,  Mr.  Drew,  was  there,  and  Mr.  Jones. 

Q.  VVlio  made  those  examinations! — A,  They  all  did,  but  at  different 
periods;  not  at  the  same  time. 


Q.  Were  you  there  when  the  last  examination  was  made? — A.  Yes, 
sir;  I  guess  I  was.  For  three  months  1  was  not  there,  and  there  was 
an  examination  made  while  I  was  absent. 

Q.  Who  made  the  last  one? — ^A.  Mr.  Jones — I  don't  know  his 
name. 

Q.  Where  is  he? — A.  In  the  Market  Street  National  Bank  of  Phila- 
delphia. 

Q.  And  the  examiner,  in  person,  never  made  any  examination,  so  far 
as  you  knew? — A.  Not  to  my  knowledge — I  mean  Mr.  Drew. 

By  the  Chairman  : 

Q.  You  never  communicated  any  of  these  facts  to  the  examiner  or  his 
assistants? — A.  Never. 

B^  Mr.  Dickerson  : 

Q.  Do  you  know  whether  anyone  else  did? — A.  I  do  not  know. 

Q.  Did  you  ever  hear  any  conversation  about  it  ? — A.  I  only  heard  it 
afterwards  when  Lawrence  made  the  confession.  I  didn't  know  any- 
thing about  it  before. 

Q.  That  was  in  November,  1891? — A.  It  was  the  1st  of  December, 
1890. 

Q.  You  don't  know  whether  Mr.  Drew  knew  anything  about  this? — 
A.  I  do  not. 

Q.  Did  he  ever  ask  for  references  to  those  star  entries? — A.  He  never 
asked  me. 

Q.  He  never  asked  you  about  any  of  the  books  in  your  custody? — A. 
He  never  did,  but  he  had  a  personal  account  in  my  ledger. 

Q.  Did  they  not  come  to  you  and  ask  you  any  questions  about  the 
books  or  yoiu"  methods  of  keeping  them  ? — A.  They  took  off  a  trial 
balance. 

Q.  Did  they  notice  the  difference  in  the  appearance  of  the  books? — 
A.  They  never  said  anything  to  me  if  they  did. 

Q.  Did  they  have  the  books  in  their  possession? — A.  Yes,  sir;  they 
had  to  take  the  balance  off  my  books. 

Q.  Was  there  any  effort  made  to  make  the  handwriting  appear  like 
yours? — A.  I  discovered  a  case  day  before  yesterday  where  he  had 
made  an  alteration,  and  it  was  like  mine.  It  was  so  much  so  that  when 
I  first  saw  it  I  thought  it  was  mine.  That  shows  he  had  copied  my 
handwriting. 

Q.  Could  you  distinguish  them  ordinarily  ?— A.  I  think  1  could.  His 
handwriting  was  somewhat  peculiar.  His  is  a  sort  of  a  jerky,  heavy 
hand- writing;  mine  is  not  of  the  best,  but  it  is  light.  I  saw  him  make 
two  false  entries. 

Q.  None  of  these  bank  ofiicials  from  the  Comptroller's  department, 
the  United  States  examiners,  ever  asked  you  any  questions  about  this? — 
A.  No,  sir. 

Q.  You  say  that  Mr.  Drew  had  an  account  in  the  bank?— A.  Yes, 
sir;  he  had  a  personal  account  in  my  ledger. 

Q.  Was  it  ever  overdrawn,  to  your  knowledge  ?— A.  I  think  not. 

Q.  Do  you  know  what  the  items  that  went  to  make  up  the  credit 
side  were;  whether  they  were  cash  or  not?— A.  I  don't  know  what  kind 
ol  deposits  he  made — that  is,  whether  they  were  checks  or  cash.  I 
can't  say. 

By  Mr.  Cox: 

Q..  What  was  the  extent  of  that  account;  how  large  did  it  run? — 
A.  It  was  not  much  more  than  $200.    It  was  sraiill. 


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INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


23 


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C^.  You  say  you  saw  these  books  day  beinre  yesterday? — A.  Yes, 
sir;  I  saw  tbem  down  at  tlie  receiver's  office.  Mr.  Me(iill  showed 
them  to  rue. 

Bythe  Ohaiuman: 

Q.  Do  I  understand  that  you  were  sent  there  by  Mi*.  Volhiui,  the  ex- 
pert!— A.  I  was. 

Q.  The  receiver  (hxliued  to  permit  you  to  see  them? — A.  Mr. Brown 
dec^lined. 

Q.  Who  was  he? — A.  He  was  the  expert  on  the  books. 

Q.  Was  he  from  Washington? — A.  I  am  not  sure  who  employed  liim; 
but  I  think  the  council  committee  employed  him.  He  would  not  let 
me  look  at  them. 

By  Mr.  Cox ; 

Q.  Bo  you  know  what  amount  of  money  the  bank  paid  those  ex- 
aminers?— A.  I  don-t  know;  I  heard  they  got  $100  from  each  bank  for 
each  examination. 

Q.  One  hundred  dollars  from  each  bank  or  for  each  examination? — 
A.  Each  examination. 

By  the  Chairman  : 

Q.  You  testified  to  the  sum  of  $50,000  in  alterations.  Did  that  re- 
duce the  credit  in  favor  of  Bardsley  upon  the  books  of  the  bank  that 
much? — A.  It  did;  yes,  sir. 

Q.  So  that  the  bank  was  that  much  less  indebted  to  him,  and  the 
bank  was  the  gainer  and  Bardsley  the  loser? — A.  Yes,  sir. 

Q.  It  just  took  $50,000  out  of  the  credit  of  Bardsley's  account? — ^A. 
Yes,  sir. 

By  Mr.  Cox: 

Q.  State  also  whether  any  of  these  gentlemen  who  you  have  said 
were  assistant  examiners,  wliose  names  you  have  given,  had  any  ac- 
counts in  the  bank  ? — A.  Yes,  sir ;  Mr.  Trenholm  had. 

Q.  Was  it  an  individual  deposit? — A.  Yes,  sir.     He  is  the  only  one. 

Q.  His  name  was  not  in  your  ledger? — ^A.  No;  but  I  knew  abcmt  it. 
I  took  the  bookkeeper's  accounts. 

Q.  What  sort  of  iu^count  was  that? — A.  It  was  very  much  overdrawn. 

Q.  To  what  extent  was  it  overdrawn? — A.  It  was  overdrawn  at  least 
$5,000,  if  not  more. 

Q.  Was  there  any  other  of  these  gentlemen  who  had  accx)unts  there? — 
A.  None  besides  Drew  and  Trenholm. 

By  Mr.  Dickerson  : 

Q.  Were  they  borrowers  of  the  bank? — A.  They  were  if  their  ac- 
counts were  ovenlrawn. 
Q.  Did  they  negotiate  paper  there? — A.  Not  that  I  know  of. 
Q.  Who  is  Treiiliolni  ? — A.  His  father  is  in  New  Yoik  somewhere. 

By  Mr.  Diokerson  : 

Q.  Do  you  know  of  anything  else  ab(mt  the  bank  that  was  irregular? 
If  so,  state  what  you  know  about  it  and  the  general  methods  of  the 
bank. — A.  I  don't  know  hardly  how  to  answer  that. 

By  Mr.  Cate  : 

Q.  He  means,  is  there  any  other  crookedness  you  know  about,  and  if 
so  we  want  you  to  state  it. — A.  Those  are  the  only  things  that  came 
under  my  eye.  I  knew  from  hearsay  that  the  bank  got  a  great  deal  oi 
money  ttom  Bardsley. 


By  theCHAiK3iAN: 

O  The  accounts  with  Bardsley  were  regular  deposit  accounts  ?— A. 
He  iiad  four  accounts,  the  '^  Bradford  Mills,"  "John  Bardsley,"  "John 
Bardsley,  special,"  and  "  John  Bardsley  &  Co." 

Q.  What  was  the  "John  Bardsley,  special,"  account?— A.  It  was  the 

highway  account 
Q.  What  was  the  account  of  "John  Bardsley?"— A.  That  was  his 

personal  account.  ,      .   .,  , ,.  »     * 

Q.  That  was  the  account  in  which  he  kept  the  pubhc  money?— A. 
Yes,  sir;  the  John  Bardsley  account. 

Q.  The  "Bradford  Mills"  was  a  manufacturing  concern  of  which 
Bardsleywastreasurer?— A.  Yes,  sir.  o  ^   «    ^^  x 

Q.  What  was  the  other  account?— A.  "John  Bardsley  &  Co."  That 
was  a  very  inactive  one. 

Q.  The  active  account  was  the  John  Bardsley  account?— A.  Yes,  sir. 

Q.  In  addition  to  that,  he  furnished  money  to  the  bank  which  did  not 
go  into  the  account?— A.  I  don't  know  anything  about  that,  except 

what  I  saw  there. 

Q.  You  learned  that  he  gave  \h^  bank  money  and  took  due  bills?— 
A.  Yes,  sir;  he  took  due  bills. 

Q.  And  this  you  did  not  have  anything  to  do  with?— A.  I  had  charge 
of  the  certificates  of  deposit  issued  by  the  bank.  There  was  a  great 
deal  of  this  business.  Mr.  Marsh  would  draw  up  certificates  of  deposit 
for  large  amounts  and  give  them  to  certain  parties,  and  from  them  we 
never  got  any  money.  He  told  me  to  post  them  up,  and  the  parties 
got  the  money  on  them  for  which  we  never  got  any  return. 

Q.  Can  you  give  the  names  of  some  of  those  gentlemen? — ^A.  H.  H. 
Yard,  William  Jackson,  and  one  or  two  other  parties  who  were  em- 
ployed by  him. 

By  Mr.  Cox : 
Q.  I  do  not  catch  clearly  about  how  they  work  this. — A.  I  don't 
know  whether  Marsh  got  the  cash.    It  didn't  come  from  the  receiving 
teller. 

By  Mr.  DiOKEESON :     . 

Q.  They  came  to  you  in  the  regular  way  in  the  office? — ^A.  They 
were  regular  certificates  of  deposit.  They  didn't  come  from  the  receiv- 
ing teller. 

Q.  Ordinarily  would  they  come  through  the  receiving  teller? — ^A.  I 
never  got  tliem. 

By  Mr.  GATE : 
Q.  The  teller  did  not  take  your  books  to  make  up  the  balances? — 
A.  No,  sir;  because  those  accounts  didn't  show  on  any  book. 

By  the  Chairman  : 

Q.  Who  was  that  teller? — A.  Jefibrd  and  Nieman,  and  Hayes,  son  of 
the  cashier,  were  paying  tellers. 

By  Mr.  Dickerson  : 

Q.  Was  there  any  temporary  use  of  money  to  make  up  the  amount  of 
cash  in  any  way  that  you  know  of? — A.  I  only  heard  of  it.  We  borrowed 
from  other  banks. 

Q.  Was  there  any  record  kept  of  that  indebtedness? — A.  We  would 
give  them  our  due  bills. 

Q.  The  books  would  not  have  shown  anything  about  that? — A,  No, 
sir 5  the  paying  teller  has  charge  of  the  due  bills. 


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24 


INVESTIGATION   OF   NATIONAL   BANKS. 


Q.  You  would  not  be  able  to  testify  as  to  the  amount  of  those  ?— A.  I 
would  not.     The  due-bill  matter  is  very  much  mixed  up. 

By  Mr.  Townsend  : 

Q.  You  say  that  the  certificates  of  deposit  were  issued  bv  Marsh  to 
Yard  ?— A.  Yes,  sir.  ^ 

By  the  ('hairman: 
Q.  Were  not  these  issued  by  Marsh?— A.  Yes,  sir. 
By  Mr.  Townsend  : 

Q.  The  first  seen  of  those  w<nild  be  when  they  came  back  to  the* 
bank?— A.  Yes,  sir;  that  is  the  first  knowledge  I  had  of  them. 

Q.  It  would  not  be  evidence  of  any  deposit  until  it  came  in?— A. 
Kone  whatever. 

By  Mr.  Cobb  : 

Q.  When  they  (;ame  in  they  were  regular  deposits?— A.  They  were 
deposited  as  if  they  were  all  right. 

At  this  point  the  connnittee  adjourned. 


Committee  on  Banking  and  Currency, 

April  ^8^  1892. 
The  committee  met  at  10:30  a.  m. 

Present:  Messrs.  Bacon  (chairman),  Di<'kerson,  Gantz,  Cobb,  Pusey, 
Henderson,  Sperry,  Cate,  Cox,  Walker,  and  Townsend. 

TESTIMONY  OF  EDWARD  S.  LACEY,  COMPTROLLER  OF  THE  CUR- 
RENCY. 

By  the  Chairman  : 

Q.  At  the  close  of  the  examination  yesterday  you  were  asked  to  give 
us  as  nearly  as  i^ossible  the  date  when  this  real  estate,  as  shown  by  the 
resources  of  this  bank,  disappeared  out  of  its  assets.— A.  I  found' that 
in  the  report  of  condition,  showing  the  condition  of  the  bank  at  the 
*  close  of  business  December  17, 1875,  that  the  banking  house,  other  real 
estate,  and  stocks,  bonds,  and  mortgages  remained  substantially  as 
they  did  at  the  first  opening  for  business;  that  is,  the  banking  house 
was  $150,000;  other  real  estate,  $28,395.10;  other  stocks,  bonds,  and 
mortgages,  $28,357.10. 

The  report  of  the  condition  at  the  close  of  business  on  the  10th  of  the 
following  March,  1870,  "  other  real  estate,"  which  had  been  reported  in 
December  at  $28,395.16,  disappeared  as  assets.  The  banking  house  re- 
mained at  $150,000,  other  stocks,  bonds,  and  mortgages  at  $27,542.60. 
The  report  of  condition  at  the  close  of  business  May  12,  1876,  other 
stocks,  bonds,  and  mortgages  had  been  redu(fed  to  $8,100,  the  banking 
house  still  being  reported  at  $150,000.  The  report  of  the  condition  at 
the  close  of  business  on  the  30th  of  June,  1876,  reports  the  banking 
house  at  $150,000,  other  stocks,  bonds,  and  mortgages  at  $3,700.  There 
was  no  substantial  change  until  May  6, 1881.  The  report  of  that  date 
shows  that  other  stocks,  bonds,  and  mortgages  had  entirelv  disappeared. 
The  banking  house  is  reported  at  $140,000.  The  report  at  the  close  of 
business  on  June  30,  1881,  shows  other  stocks,  bonds,  and  mortgages 
had  disappeared,  other  real  estate  had  disap])eared,  and  the  banking 


INVESTIcfATION   OF   NATIONAL   BANKS. 


25 


house  wa.s  still  set  down  at  $140,000.  The  report  of  the  condition  at 
the  close  of  business  on  the  1st  of  October,  1881,  shows  that  there  was 
no  amount  stated  as  other  stocks,  bonds,  and  mortgages,  and  lor  the 
banking  house  the  $140,000  had  disappeared,  and  the  same  thing  was 
true  of  other  real  estate.  This  report  of  the  condition  of  the  bank 
shows  that  those  three  items  had  entirely  disappeared. 

Q  They  disappeared  between  June  and  July,  1881?— A.  Between 
June  and  October,  1881,  the  banking  house  disappeared  from  among 
the  assets. 

No.  of  bank,  2291. 

[Use  the  blank  lines  If  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

BwoH  of  the  condition  of  ^' The  Keystone  National  Bank"  at  Philad'a,  in  the  State  of 
Pennsylvania,  at  the  close  of  business  on  the  30th  day  of  June,  1881. 

Db.  ^"• 


Kesources. 


Loans  and  discounts  (see  schedule) 

Overdrafts 

U.  S.  bonds  to  secure  circulation 

(par  value) 

U.  S.  bonds  to  secure  deposits  (par 

value) 

U,  S.  bonds  on  hand  (par  value) 

including  $ tL_S-j;e£ujUiling 

<;er^ificate8 

OtlTer  stocks,   bonds,   and  mort- 


gages (see  schedule) 


Dollars. 


583, 664. 30 
1, 477. 03 

200,000 


8. 
9. 

10. 
11. 
12. 

13. 
14. 


Due  from  approved  reserve  agents 

(see  schedule) 

Due  from  other  national  banks 

Due  from  State  and  private  banks 

an<l  bankers  (see  schedule) 

Banking  house $ 

Other  real  estate $ 

Furniture  and  fixtures.  $ 


Current  expenses  and  taxes  paid . . 

Premium  paid — On  bonds  for  cir- 
culation, $10,884.29;  other  pre- 
miums, $ 


15.  Checks  and  other  cash  items  (see 

schedule) • 

16.  Exclianges  for  clearing  house 

17.  Bills  of  other  banks 

Fractional  paper-currency,  nick- 
els, and  cents 

Specie,  viz : 

Gold  coin $3,153.00 

Silver  coin $9, 995. 78 

Gold  clearing-house 

certificates $5, 000. 00 

Silver  certificates  (act 

Feb.28,1878) $ 


18 
19 


20.  Legal-tender  notes 

21.  XJ.  S.  certificates   of  deposit   for 

legal-tender  notes 

22.  Redemption  fund  with U.  S,  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23.  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redemption  fund.) 


Total 


16, 046. 83 
30, 319. 37 

5,021.37 


140, 000 
848.98 


10, 884. 29 


Liabilities. 


13, 746. 

56, 119. 

2,076 


65 
48 


165.50 


18, 108. 
52,300 


78 


9,000 


1 .  Capital  stock  paid  in 

Mortgage 

2.  Surplus  fund 

3.  Undivided  profits 


Circulating  notes  re- 
ceived from.  Comp- 
troller   $ 

Less  amount  on  hand 
and  in  Treasury  for 
redemption $ 


Dollars. 


200,000 
60,000 
25,000 
8, 102. 35 


5.  State  bank  circulation  outstand- 
ing   


1,139,778.58 


6.  Dividends  paid 

7.  Individual    deposits 

subject  to  check. .  $637, 372. 62 

8.  Demand   certificates 

of  deposit $ 

9.  Time  certificates  of 

deposit $ 

10.  Certified  checks $ 

Cashier's  checks  out- 
standing;  teller's 
due  bills $29,  303. 61 


180, 000 


11 


12.  United  States  deposits 

13.  Dejwsits  of  U.  S.  disbursing  offi- 

cers. 


14.  Due  to  other  national  banks 

15.  Due  to  State  and  i)rivate  banks 

and  bankers. 


16.  Kotes  and  bills  re-discounted 

17.  Bills  payable 


666,  676.  23 


Total 


1, 139, 778. 58 


• 

I,  G.W.Mar.sh,  ca.shier  of  "The  Keystone  National  Bank, of  Philadelphia.  Penna.,"  do  solemnly 
swear  that  the  above  statement  is  true,  to  the  best  of  my  knowledge  and  belief. 
„  G.  W.  Marsh,  Cashier. 

Correct.— Attest: 

Geo.  I.  McKelwat, 
Gbanville  B.  Haines, 
Jko.  C.  Lucas, 

Directors. 


i 


26 


INVESTiaATION   OF   NATIONAL   BAT^S. 


Jos.  p.  Kenxkdy,  Xotary  Puhlie. 


State  ok  Pennsvi.vania,  County  of  Philadelphia: 
Sworn  to  and  .snbsf;rib<'«l  before  me  this  7th  daj'  of  July,  1881. 

fSEAI,.] 

Note. — This  rei»ort  is  to  be  made  at  such  times  as  may  be  designated  by  the  Comptroller  of  the  Cur- 
reucy ;  to  be  sworn  to  by  the  president  or  cashier,  not  by  vice-preHdent  or  a$si«tant  cashier ;  attested  by 
not  less  than  tliree  directors,  and  forwarded  to  the  Comptroller  of  the  Currency  without  delaj'.  Each 
day's  delay  after  live  days  will  subject  the  bank  to  a  penalty  of  one  hundred  dollars.  See  sections  5211 
and  5213,  Kevised  Statutes  of  the  United  States. 


SCHEDULES. 
Loans  and  discounts. 


On  paper  with  two  or  more  individual  or  firm  names $523, 799. 63 

On  single  name  paper  (one  person  or  firm)  without  other  security $ 

On  mortgages  and  other  real-estate  secuidty $ 

On  U.S.  bonds  (demand  loans) $ 

On  other  stocks,  bonds,  etc.  (demand  loans) $ 

All  other  loans $  59,864.67 

Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat $ 

Other  suspended  and  overdue  paper $    4,285.99 

Liabilities  of  directors  (individual  and  firm)  as  payers $98,583 


583.664.30 


Other  stocks,  bonds,  and  mortgages. 


Due  from  approved  reserve  agents. 


Hanover  Nationnl  Bank,  N.  T 


Due  from  State  and  private  banks  and  bankers. 
[Such  items,  only,  as  exceed  one-tenth  of  the  capital  of  this  bank.] 


Checks  and  other  cash  items. 


Checks  and'drafts 

Internal-revenue  stamp 
Coupons 


13, 585.  27 
16L38 


"5.  S.  refunding  certificates 


Average  resei-ve  and  interest. — Average  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  waa 
33  per  cent  of  deposits  and  bank  balances.    The  highest  rate  of  interest  allowed  is  2J  per  cent. 


INVESTIGATION   OF    NATIONAL   BANKS  27 

No.  of  bank, 'J2!)l. 

[Use  the  blank  rm<.s  if  necessary,  but  do  not  erase  or  change  any  of  the  priuted  itoms.J 

,    r  n...  .>nu,mion  of  ''  The  Ketfstone  National  Bank,  at  Philad'aJ'  in  the  State  of 
Report  of  f1^'-^ond^u>n^  .^^  ^^l^n^^^   V^^^^^^^  ^^  ^^^^  ^^^  ^^^  ^^.  ^^^^^^,.   ,,^1. 

Db.  . 


Resotirces. 


Dollars. 


1.  Loans  and  discount  (see  schedule) . 

2.  Overdrafts ;  •  -  •  -  -  -  -  -  -  • 

3.  U.  S.  bonds  to  secure  circulation 

(par  value) -.--••  — 

4.  U.  S.  bonds  to  secure  deposits  (par 

value) - ,--••• 

5.  U.  S.  bonds  on  hand  (par  value) 

including  $ U.  S.  refunding 

certificates - 

6.  Other  stocks,  bonds,  and  mor^ 

gages  (see schedule) 

7.  Due  from  approved  reserve  agents 

(in  schedule) 

8.  Due  from  other  national  banks. . . 

9.  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10.  Banking  house $ 

11.  Other  real  estate $ 

12.  Furniture  and  fixtures  $ 


682, 722.  80 
1,  494. 55 

200,000.00 


Liabilities. 


13.  Current  expenses  and  taxes  paid. . 

14.  Premium  paid— On  bonds  for  cir- 

culation. $ ;  other  premiums, 


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  for  clearinghouse 

17.  Bills  of  other  banks 

18.  Fractional  paper  currency,  nickels, 

and  cents 

19.  Specie,  viz : 

Gold  coin $4,947.50 

Silver  coin 5,152.84 

Gold  certificates  (sec. 

2.'>J,  Rev.  Stat.) 

Silver  certificates  (act 

Feb.  28, 1878) 


13, 857. 53 
29, 933. 34 

14,  216. 48 


10. 000. 00 
8, 601. 83 


10, 884. 29 


16, 568. 16 

53, 079.  78 

2, 150. 00 

2L00 


1 .  Capital  stock  paid  in 


Dollars. 


200. 000. 00 

2.  Surplus  fund T^ff  US 

3.  Undivided  profits 18, 609. 05 


4.  Circulating  notes  re- 
ceived from  Comp- 
troller  $ 

Less  amount  on  hand 
and  in  Treasury  for 
redemption $ 


State  bank  circulation  outstand- 
inS 


180, 000. 00 


6.  Dividends  unpaid. 


7.  Individual    deposits 

subject  to  check $634, 940. 35 

8.  Demand  certificates 

of  deposit $ 

9.  Time  certificates   of 

deposit $ 

10.  Certified  checks $ 

11.  Cashier's  checks  out- 

standing  $  40,165.04 


^„  .,.,v.. --      12.  United  States  deposits 

53^  079. 78  ji  13.  Deposits  of  U.  S.  disbursing  ofli- 
cers 


20.  Legal-tender  notes 

21.  U.  S.  certificates   of   deposit  for 

legal-tender  notes 

22.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation.) • 

23.  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redemption  fund) 


10, 100. 34 
37, 565. 00 


9, 000. 00 


14.  Due  to  other  national  banks 

15.  Due  to  State  and  private  banks 

and  bankers 


16.  Notes  and  bills  rediscounted  . . . 

17.  Bills  payable 


675, 105. 39 


1, 319. 17 
161. 19 


Total 1,100,194.80 


Total 


1, 100, 104. 80 


I,  G.  W.  Marsh,  cash,  of  "  The  Keystone  Nati'l  Bank,  Philad'a,  Pa.,"  do  solemnly  swear  that  the 
above  statement  is  true,  to  the  best  of  my  knowledge  and  beliet. 


Correct.    Attest; 


State  of  Pennsylvania,  County  of  Philadelphia: 
Sworn  to  and  subscribed  before  me  this  10th  day  of  October,  1881 

r .  _      -1  T  *  "! 


G.  W.  Marsh,  Cashier. 

Wm.  Abmstbonq, 
Jno.  C.  Lucas, 
Granville  B.  Haines, 

Directors. 


[seal.] 


James  P.  Kennedy,  Notary  Publie. 


■  ij 


'X\ 


28 


INVESTIGATION  OF  NATIONAL  BANKS. 

SCHKDIILKS. 
Loans  and  discounts. 


Oh  paper  with  two  or  more  individual  or  firm  names $612, 879. 69 

On  single-name  paper  (one  person  or  firm)  without  other  security $ 

On  mortgages  and  other  real-estate  security $ 

Ou  U.  S.  Donds  (demand  loans) $ 

All  other  stocks,  loans,  etc.  (demand  loans) $ 

All  other  loans $  69,843.11 

Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat $ 

Other  suspended  and  overdue  paper $ 

Liabilities  of  directors  (iudividuai  and  firm)  as  payers * .  $       35, 422 


682,  722. 80 


Other  atoeks,  bonds,  and  mortgages. 


Due  from  approved  reserve  agents. 


Hanover  National  Bank,  New  York.     $13,857.53 


Due  from  State  and  private  hanks  and  hankers. 
[Such  items,  only,  as  exceed  one-tenth  of  the  capital  of  this  bank.] 


Cheeks  and  other  cash  items. 


Checks  and  drafts 

Internal-revenue  stamps 


$16, 406.  78 
161.  38 


Average  r^'serve  and  interest. — Average  reserve  for  last  30  «iays  (in  bank  and  with  reserve  agents)  was 
20  per  cent  of  deposits  and  bank  balances.    The  higliest  rati^^of  interest  allowed  is  3  per  cent. 


Q.  Eecurring  to  the  examination  at  the  point  where  we  were  yester- 
day, you  were  asked  to  produce  the  report  of  the  condition  of  tlie  bank 
made  about  the  time  of  the  first  increase,  somewhere  in  the  neighbor- 
hood of  January,  1886,  I  think  it  is. — A.  The  first  increase  of  capital 
was  approved  by  the  Comptroller  May  — . 

Q.  Your  testimony  shows  that  your  report  was  made  in  January, 
1886,  and  the  last  report  about  the  increase  and  report  of  the  condition 
of  the  bank  nearest  to  that  date  at  the  close  of  business  was  January 
19, 1886. — A.  Yes,  sirj  the  next  report  of  the  examiners  was  July  27, 
1886.    That  was  after  the  first  increase. 


INVESTIGATION   OF   NATIONAL.   BANKS. 


29 


^   m  1  ^  f>.o  Tniinarv  rcDort  of  1886,  please,  and  state  whether  there 
iX^^^^^'^^^oZtt^.t^^^^  Wnowalludetothe  report 

'''^''\'^-rTtLTl7^^'^.^  ,,,^,  „p,,  tte  report  of  the 

"TTTrnlo'^rre^o't'o^'M^^^^^  1,  showing  the  condition     Do  you 
Q.  lurn  to  tne  i^v^\^         ^.,i.„^.^  i'  o„^.  fnrm?— A.  T»^o  real  estate ap- 


which^ou  have?-A.  The  same  item  appears  in  the  report  of  condition 

'''n  ThV'exSuer's  report  also    shows  due   from   reserve  agents 
Q.  me   exaniiucis  icpuiu ,c„„„,,  i    cK^w«_A    The  renort 


shows  <'  due  fi'om  other  banks,"  $47,031.07.  .  . 

Q.  Due  from  State  banks  and  bankers,  $5,316.%.— A.  This  repoit 

'^  q""^  tSc  tsin  ^^^  on  these  cm-rent  expenses,  $3,140.91.    This  seems 
to  be  a  report  among  the  resources.-A.  The  current  expenses  and 

^^^IlltTaTinc^^^^^^^^  t.he  custom  to  show  current  ex 

penses,  salaries,  rent,  stationery,  fuel,  lights,  and  other  expenses  as  re- 
sources  until  the  dividend  period  arrives,  when  they  are  charged  to 
urofit  and  loss.  That  reduces  the  item  on  the  other  side. 
^Tlstliere  anything  here  which  will  enable  y^u  ^  tell  whet^^^^^ 
dividend  was  declared  between  January  and  March,  188b  f— A.  A  divi- 
dend of  3  per  cent  was  declared  on  May  4, 1886.  -  ^.^^  fi^,^. 
Q.  That  was  the  first  dividend  in  that  year!— A.  Yes,  sir;  the  first 

dividend  in  that  year.  ,  .  .      ,  . 

O   The  undivided  profits  do  not  appear  on  this  examiner's  report, 
except  as  surplus!— A.  Here  is  an  item  which  makes  up  the  undivided 

^"^a^Discount,  profit,  and  loss!— A.  There  is  an  item  extended  here, 
making  the  amount  in  the  report  of  condition  stated  as  undivided 

^^Q.  The  two  items  of  discount  and  profit  and  loss  aggregate  ^8,539.13  !— 
A   The  report  of  March  1, 1886,  makes  the  undivided  profit  $14,548.bo. 

*Q.  This  statement  reports  due  individuals  on  deposit  and  demand 
certificates  $968,101.89.  What  is  the  item  corresponding!— A.  Ihe 
amount  due  as  individual  deposits,  subject  to  check,  is  stated  as 
$1,485,595.57.  Teller's  due  bills  are  added  to  that  amount  m  the  sum 
of  $54,847.14.    The  total  charges  aggregate  $1,540,000. 

Q.  Will  you  turn  to  the  other  side  and  state  the  amount  ot  notes  and 
discounts!— A.  It  was  1,080,788.66  on  March  1, 1886.  There  is  an  item, 
"due  national  banks,"  of  $27,315.45. 

Q.  The  report  of  March  1  makes  it  $53,073.42.— A.  Due  State  banks, 
$10  938  12. 

Q.  Thereport  of  March  1  makes  it  $17,822.40. 

Q.  Is  this  report  which  you  have  before  you  the  last  one  that  was 
made  prior  to  the  increase  of  the  capital  stock! — A.  It  is. 

Q.  And  this  examination  by  the  examiner,  in  January,  was  the  last 
one!— A.  It  was  the  last  one  before  the  increase  of  capital. 

Q.  Have  you  a  report  of  the  examiner  which  was  made  next  after 
that! — ^A.  The  next  examination  was  made  July  27, 1886. 


ffmmim^Kma 


Wm 


30 


INVESTIGATION   OF   NATIONAL   BANKS. 


Q.  The  increase  of  capital  stock  was  in  May? — A.  It  was  May  4  or  5. 

Q.  Will  you  take  that  and  look  at  some  figures !  What  amount  is 
actually  paid  in,  according  to  the  report? — A.  $400,000. 

Q.  What  is  the  surplus  as  reported? — A.  $70,000. 

Q.  What  are  the  undivided  profits?— A.  $18,6()7.11. 

Q.  The  circidation  is  reported  here  at  $45,(X)0. — A.  It  is  reported  here 
at  $45,000. 

Q.  U.  S.  bonds  to  secure  circulation  is  reported  at  $50,000.  It  is  the 
same  here  on  .July  27,  1886.  What  is  the  amount  of  notes  and  bills 
discounted ?— A.  $l,29;i,433.60. 

Q.  Overdrafts  reported  in  January  is  $4,427.00.  What  is  the  amount 
due  from  reserve  agents? — A.  The  amount  due  from  reserve  agents  is 
stated  on  July  27, 1886,  at  $116,838.85. 

Q.  The  amount  due  from  other  national  banks  is  how  much? — A. 
$57,91^9.37. 

Q.  The  amount  due  from  State  banks  and  bankers  is  how  much? — 
A.  $15,303.36. 

Q.  State  the  amount  due  from  national  banks,  as  set  out  in  the  fig- 
ures.—A.  It  is  stated  at  $104,991.22. 

Q.  And  the  amount  due  State  banks  and  bankers? — A.  $26,174.83. 

Q.  To  ask  you  the  general  question,  can  you  see  from  that  statement, 
in  any  way,  what  they  did  with  the  other  $200,000?— A.  The  total  foot- 
ing of  the  report  of  January  19, 1886,  was  $1,329,894.57.  The  report  of 
the  27th  of  July,  1886,  shows  $1,794,952,  showing  an  increase  of  some- 
thing over  $400,000  between  elanuary  and  July  of  that  year.  A  large 
part  of  that  increase  appears  in  the  items  of  lodns  and  discounts. 

Q.  Compare  it  with  the  March  statement,  and  you  will  find  it  is  not 
as  large  as  loans  and  discounts. — A.  Loans  and  discounts  on  March  1 
were  $1,080,780.60;  that  is,  on  the  1st  of  July,  and  $1,292,432.62  in 
January,  an  increase  of  about  $210,000. 

Q.  At  the  same  time  the  item  from  other  banks  and  to  other  banks — 
those  items  off-setting  each  other — shows  less  due  from  them  and  more 
due  to  them. — A.  The  amount  due  from  banks  on  July  27, 1886,  Avas 
much  larger  than  is  shown  by  the  report  of  condition  on  the  1st  of 
March,  1886. 

Mr.  Payson  (attorney  for  Comptroller  Lacey).  •  Please  give  the 
figures. 

The  WITNESS.  The  amount  due  from  reserve  agents  on  March  1, 1886, 
is  stated  at  $64,675.06;  due  from  other  national  banks  $47,031.70;  show- 
ing the  aggregate  amcmnt  from  banks  and  bankers  on  the  1st  of  March, 
1886,  to  be  $134,055.27.  The  same  item  on  Jul v 27, 1886,  was  $191,131.58, 
an  excess  on  July  27, 1886,  of  about  $56,000.*^ 

By  the  Chairman  : 

Q.  Take  the  other  items,  which  are  opposite  items,  and  see  how  that 
comes  out. — A.  The  amount  due  to  banks  and  bankers  was  $70,895.80, 
and  on  July  27, 1886,  it  was  $131,166.05,  showing  that  the  amount  due 
to  banks  and  bankers  on  July  27, 188(>,  was  in  excess  of  that  of  March 
1  about  $()0,000.  Of  course  the  banks  represented  on  one  side  are  not 
the  same  banks  as  those  represented  upon  the  other  side.  The  amount 
due  from  banks  and  bankers  to  the  Keystone  Bank  would  be  from 
banks  situated  in  reserve  cities,  like  Boston  and  New  York,  and  those 
due  trom  the  Keystone  Bank  would  be  to  interior  correspondents  who 
kept  accounts  in  Philadelphia. 

By  the  Chairman  : 
We  will  mark  these  exhibits  C  to  P,  and  let  them  go  in  the  record. 


INVESTIGATION   OF   NATIONAL   BANKS. 


31 


Exhibit  C. 

(Form  251.) 
[No.  of  bank .] 

*  ^f  n^  rnfidiiion  of  the  Keystone  National  Bank.    Located  at  FUladeU 
^%X\l?c":L%  ffmf^dTpZXte  If  Pennsylvania,  at  S  o^clock,  i>.  m.,  January 

19, 1886. 


John  C  Tatcas.  PrMident. 
Resources. 


Gideon  W.  Mabsh,  Cashier. 


Dollars. 


1.  Notes  and  bills  discountetl 

2.  Overdrafts :  •     T  I- "  '  /■>  o'  v 

3  U  S.bond«t0  8ecurecircmation(..'  o) 

4  TI.  S.  bonds  to  secure  deiMWils 

5*.  IT.  S.  bonds  on  hand .......-- 

6   other  stocks,  bonds,  and  mortgages 
7.  Due  from  appv'd  reserve  ajreiits, 

viz :  . 

Hanover     ^  «  *  ^  o  i> »  L ,  .  „.,  4  00 
Bank,  N.  Y $12,734.92 

Tradesmen's  National 
Bank.N.Y 54, 774.  2d 


910,42(5. 

4.  427. 

50,  ()0() 


;J3 
0(5 


Liabilities. 


8. 
9. 

10 


Due  from  other  national  bank  s  (58) . 
Due  from  State  banks   and  hank- 
ers (5) - 

j^,.  Banking  houses $ 

11 .  other  real  estate 

12.  Furnitme  and  fixtures. $10, 000.  00 

13.  Current  expenses $3, 140. 91 

14.  Taxe*  paid.  -  - 

15.  Premium.s  paid * 

Exchanges 

16.  Checks  and  other  cash  items 

17.  Exch's  for  C.  H.,  incl'dg  gold  ch  ks 

18.  Bills  of  other  national  banks 

19.  Bills  of  State  banks ...........--- 

20.  Eractional  currency,  incl  d  ni«kel8 

21.  Spec'ie,  viz: 

Fractional  silver $1, 21 5. 25 

Silver  dollars 40,242 

Silver  Tr'y  cert's 3, 000 

Gold  coins 2,448..")0 


Gold  Tr'y  cert's 


(57, 509. 17 
51, 543. 45 

5, 31(5. 90 


10, 000 
3, 140.  91 


240.  23 
7,  809. 97 
70, 103.  81 
13, 3(55 

977. 93 


9. 
10. 
11. 


Capital  stock  paid  in 

Surplus  fund zr^^'ka 

Discount $o>  201.  56 

Exchange 

Interest 

Premiums ^  „«-,  r-r 

Profit  and  loss <.  337.  .>7 


Dollars. 


200,  000 
70,000 


Circulation  received. .  $45, 000 
On  hand  and  returned. . 

State  bank  circulation  outstanding 

Dividends  unpaid 

Individual  deposits,  viz: 

Subject  t«  check. . .  -$956, 354. 79 


Dt^mand  certifs. . 
Time  certificates 
Certified  checks.. 
Cashiers'  checks. 


11, 747. 10 


8, 539. 13 


45,000 


40,  905.  75 


12. 

13. 
14. 
15. 
16. 
17. 


United  States  deposits 

Deposits  of  XJ.  S.  disbuising  otticer. 

Due  to  national  banks  (0) 

Due  to  State  banks  and  bankers  (5) 

Notes  and  bills  rediscounted 

Bills  payable 

Cash  over 


968, 101. 89 


27.  315. 43 
10, 938. 12 


22.  Legal-tender  notes 2(»,  878 

23.  XT.  S.  cert's  of  dep.  for  legal-tenders     C5,  000 

24.  5  p.  c.  Red'u  fund  with  Treas.  U.  S.       2. 250 

25.  other  funds  with  Treas.,  U.  S 

Cash  short 


Total 


....  1,329,893.57 


Total.. 


1,329,834.57 


Records:  Complete— Bills  discounted  are  correct.    They  are  proved  monthly. 

Other  books:  Well  kept.  2  Individual  ledgers  (1360  %)  balances  every  other 
month— $426.18  short  older.,  bal.,  $1,962.66.  .  «-.     ,  i-    4.    i 

President:  Manager  and  principal  stockholder;  owns  l,0o4  shares  ot  stock- 
large  owners  of  property  at  Spring  Lake  and  Sea  Girt,  N.  J.  Vice  Irest:  It.  13. 
Haines;  owns  791  shares  of  stock;  a  merchant. 

Cashier :  An  experienced  officer,  acts  as  paying  teller. 


S.   Mint.  .     T    ,,-  nr\n. 

Bank  rents  whole  building  for  $9,400,  subletting  for  3,500;  net  rental  $o,900. 
Safe:  Have  safes  and  safe  dep.  vaults;  watchman;  rents  from  boxes $300. 

IHVIDKNDS  ON  SURPLUS  (^ECTION  .5199  OK   THE    ItriVlSED  STATl  TICS  OK  TIU.  U.  S.). 

Date  of  last  «Uvidend,  November  3,  1885,  amount  $    3  per  cent.     Carried 
to  protitand  loss $1,447.87 


n 


I  ;'„" 


^^  INVESTIGATION   OF   NATIONAL    BANKS. 

LOANS  AND  DISCOUNTS. 

On  paper  with  two  or  more  iudividiial  or  firm  names  (on  demand  $68  671  7«^  7^0  «7«  r.i 
mZl  llS)  rr.'  /.""^P^^««"  «^  «"")  ^i*l^«"f'  oth  "sS    (de-    ^^'  '^^'  ^^ 

On  mortgajje  and  oVher  reil  eVtatJ'  8ec">'i*y  •     - ^^^'  ^^^'  ^ 

On  U.  S.  bonds  payable  on  demand. . .  

On  other  stocks,  bonds,  etc.,  payable  on  demand'*"*.' w,  ,yy,  ,^, 

On  time,  secured  by  collaterals iV'  aItV*  IJL 

Included  in  the  above  are—                              ^**  "'*•  ^ 

Bad  d^bts  as  defined  in  section  5204  of  the  Revised  Statutes  of  the 

Other  suspended  and  overd'ue*  *p{Iper'  *!]'.'.*.'"."/. 4.97  ...^  ,^ 

Liabilities  of  directors  (individual  aiii!  firm)  jw  'p*av;;'('l'  b*orr"ow;r) ' '      I'  im'  m 
uTes  of  the  uf  S^'vlLf*  prescribed  by  section'52oi  o^'  thi  Revised  Stat-      "'  '^^  ^ 

GENERAL  REMARKS. 

Overdrafts,  of  these  $1,409.16,  are  old  and  doubtful,  and  will  be  chai^ffed 
oft,  the  remainder  are  recent  and  good "  _  «^«arfeea      ^ 

"  Past  due  papa-." 

"'i'aS;- good'"  '""'  '^"•"'   "^^"^  "'^  '»"""8  this  examination;  re 

^ZlZ\LZ^L^Ai^^''^r^^^' "°ff  d-'ri^g' ihis" examination;  ^^''''^^ '^ 

1A     vSf-     .  ^  ^*'  ®^^'  $1,000  like  eventuall  V k  01  o  ko 

Due  I880:  4  notes,  small  loss,  if  any  "  5,81i.53 

Due  1885 :  Aug.  and  Sept.  ^' John  O'kourke '''endorsed  '^Mi'chael  O'Rourk;'-"    "'  ^'  ^^ 

renewed  during  this  examination intiiaeiu  Kouike, 

Due  1885,  July:  -  J.  H.  Haverly; '^  hopeful  ! ;:::;: I'^m 

^'J^iS^rKl^S^^^-''---^^  '^-^ 

Due  1885 :  4  notes  recent  and  good '         ^^ 

.., .... .... ...... ..         878. 90 

_  ,  ^      ^  $27,433.18 

corrt^Tdenc:/'"'"  "'"""  "*"''''  """"-^'"S  reserve  agents,  have  been  verified  by 
No  interest  is  paid  on  deposits. 

an'^at■;^t5fp„r„1•i:r?,^tr^^^^^ 

a  ^^^i^^:^^'^'^  l:?n."±eut:t  *^;;irt  '^^  ->  ^oT  «■-**<• 

Cn^af^t^ritr  ^<'-  '--'^'^^  -  ^-  Hr'LiLrin^s'c"itra^drr.-„^ 

ei?y-?epu"  d^fmmior^^^^     "*"  ^''""'"^  (^  »"-->'  «  »  ""•'  """tr-tor  i„  this 

W.  P.  DuEw, 
To  the  COMPTBOLLEK  OF  THE  CURRENCY,  Examiim. 

Wathinglon,  D.  C. 


IXVKSTIGATIOK    OB'    NATIONAL    BANKS.  33 

ExiiiiJiT  D. 

Xo.olbauk,  2291. 

[Use  tho  bbmk  lines  if  nej-essaiy,  but  do  nut  erase  or  change  any  of  the  printed  itenifj-l 

Uemrt  ofih  coudition  of  The  Ket/Htoiic  Xational  Bank,  at  PhiJod.,  in  the  State  ofPenna., 
■'         "^  at  the  cloKe  of  business  on  the  1st  day  of  March,  1886. 


Db. 


Cb. 


Kesourees. 


Dollars. 


Liabilities. 


4. 
5. 
6. 


8. 
9. 

10. 
11. 
12. 

13. 
14. 


Loans  ami  discounts  (rtee  schedule).  I 

Overdraft."* :-•.•••'! 

U.  S.  biuids  to  8wui-e  circnlatuui  i 

(par  value)  —  iner  cents,  3  per  ] 

t-cnts 

U.  S.  bonds  to  secure  depo.mt>*  (i»ar 

value)  -     per  cents 

r.  S.  bonds  on  hand  (par  value) 

—  p«T  cents 

Other  st«Mk.>*,  bonds,    and    ihort- 

•rajre^  (se«*  schetlule)   


,080.788.66  ^i     1. 
121.38        2. 

11     3. 

!i 

50,000 


Cai>ital  .slock  paid  in... 

Surplus  fund 

Undivided  jirotits 


Due  fromajiprovcd  reserve  agents 
(se^  scheduhO 

Due  from  other  national  banks 

Due  fi-om  Stat«»and  private  banks 
and  bankers  (see  schedide) 

Ranking  house $ 

Other  real  estate $ 

Furniture  and  lixture8.$10,00().00 


('unent  expenses  and  taxespaid..^ 
Premium  paid — on  bonds  f«»r  cir-  \ 
eolation   $                  :  other  pre-  j 
miunis  $  


64,  (»7r».  06 
47, 031. 07 

22, 349. 14 


10,000 
7,  004.  89 


Circulating  notes  re- 
ceived from  Comp- 
troller  $ 

Less  amount  on  hand 
and  in  Ti-easury  for 
redemption $ 


15. 

16. 
17. 
18. 

19. 
20. 


$12,  674 


2, 980 

51.38 
2,000 


Checks  and  other  cash  items  (see 

schedule) ,      3. 087. 56 

Exehanges  for  clearing  house !  596,  714. 54 

Bills  of  oiher  banks 

Fractional  i)aper-curreucv,  nickels, 

and  cents 

Trade  dollars 

Specie,  viz: 

Gk)ld  coin $.35,  420 

(lold     Treasarv  certiti- 
cates  (sec.  254,    Uev. 

Stat.) $ 

Gold    Treasury  certili- 
cates  (8ec.  12,  at;t  of 

July  12,1882 $ 

Gold  clearing-house  cer 

titlcates 

Silver  coin— dolls.  9,3(KJ. 

Fract'l.  3,374 

Silver  Treasury  c<^rtiti 
<at^  (act  of  Feb'y  28, 
1878) 


20. 
21. 


55 


23. 


Legal-tender  notes 

V.  S.   certificates  of    dejiosit   for 

legal-ti'uder  notes  (sec. 5193,  Rev. 

Stat.) 

Re<lemption  fnn«l  with  U.S.Treas- 

urer  (not  more  than  5  per  cent. 

on  cirtmlation) 

Due  from  U.  S.  Treasurer  (<»ther 

than  5  jjercent.  redem])tion  fund . 


48. 004 
80, 000 


45,000 


2,250 


Total 2,062,147.68 


6. 

7. 

8. 

9. 

•10. 
11. 


12. 
13. 


14. 

15. 


IH. 
17. 


State  bank  circulation  outstanding 
Dividends  unpaid 


Dollars. 


321,260.50 
70, 000. 00 
14, 548. 65 


45,000.00 


Individual  deposits 
sub.jec't  to  check.$l,485,595.57 

Demand  c(»rtificates 
of  deposit $ 

Time  certificates  of 
dejiosit $ 

Certified  jhecks $ 

Cashier's  checks 
out-standing,  tell- 
er's d  ue  bills $;J4, 847. 14 


TTiiited  States  dei)osits 

Deposits  of  U.  S.  disbursing  of-  ! 
fleers ' 

Due  to  othei"  national  banks | 

Due  to  State  and  private  banks  | 
and  bankers 


Xotes  and  bills  rediscounted 
Bills  payable 


1,540,442.71 

53.073.42 
17,882.40 


Total i  2,062,147.68 


I,  G.  "W.  Mai-sh,  «'ash.,  of  '•  The  Keystone  National  Bank,  Philadelphia,  Penna,''  do  solemnly  swear 
that  the  above  statement  is  true,  to  the  best  of  my  knowledge  and  belief. 

G.  W.  Marsh,   Cashier. 
Correct.    Attest : 

Granville  B.  Haines, 

J.  G.  DiTMAN, 

Louis  Dreka, 

,^         l>ireetort. 
STATE  OF  Pennsylvania.  County  of  Philadelphia: 

Sworn  to  and  subscribtMl  before  me  this  ninth  day  of  March,  1886. 
l=^EAL.]  *  JOHN  W.  Barron,  .Votary  PM6i» 

:J792 3 


I 


I 


■*•«■ 


»■" 


fl 


34 


INVESTIGATION    OF    NATIONAL    BANKS. 

SCHEDULE. 

Loans  and  dinemints. 


i  )ii  papers  with  two  or  nioi-e  imlivitlual  or  Ann  names $981, 848.  66 

On  sin^leiiame  paper  («me  perM«»n  or  firm)  without  otlier  t*e«urity $  62, 500. 00 

Onmortpip^es  and  other  real-estate  se<!urity $ 

On  U.  S.  bondn  (demand  loans) ' ff, 

On  other  stocks,  bonds.  &c.  (demand  loans) $ 

On  time,  socuied  by  collaterals $  :{6,  "»60.00 

Included  in  the  above  are  : 

Had  debts,  as  defined  iu  section  3204,  Jlev.  Stat f 

Other  suspended  and  ovcnlu«>  imj»er $    o,  84'j.  83 

Liabilities  of  directors  (individual  iind  lirni)  as  payers $  12ilOo!oo 

• 
Other  utockn,  bondt,  and  mortgoAjiS. 


Ihiefrom  approved  reserve  agenU. 


Tradesmen's  National  Bank 
Hanover  National  Bank 


$4:<,  (565.  86 
21. 009. 20 


Ihiefrom  State  and  private  bankg  and  hankers. 
[Such  items,  only,  as  exceed  one-tenth  of  the  capital  of  this  bank.] 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city , 

Checks  and  drafts  on  other  banks. . . 
Coupons 


$3,087.56 


U.  S.  refundini;  certificates... 


Average  reserve  and  interest.— KverSiSi^  reserve  for  last  30  days  (in  bank  and  with  i-eserve  agents) 
was  28.08  per  cent,  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is 
3  i>er  cent. 


INVESTIGATION   OF   NATIONAL   BANKS.  3o 

Exhibit  E. 

(Form  251.) 

[No.  of  bank 1. 

.      .  .t  ../•  ihj>  omid'ition  of  **  The  Kemtone  National  BanJCf"  located  at  Phila- 

Gideon  W.  Maksh,  Cashier. 
John  C  Licah,  VivsiiUnt. 


llesoui-ces. 


Dollars. 


1,292. 4.'{3.62 
7  801.  07 


1.  Notes  and  bills  discouulinl 

2.  Overdrafts -.-■•-;■•■*  , 

3.  U.  S.  bonds  to  .secure  circulation, 

(!{  0„)    - 00,  iJUU 

4.  IT.  Sl  bonds  to  secure  deposits  . . . 

b.  U.S.  bonds  on  hand 

6.  Other  stocks,   bonds,  and   niort- 

gag«'8 


Liahilities. 


1.  Capital  stock  paid  in. 


7.  Due  from  api»d  reserve  agents,  viz : 
Hanover  Nat.  Bank, 

Ts.Y $6,699.40 

Tradesmen's     Nat. 

Rank 110,139.39 

^^^^  116,838.85 

8.  Due   from  other  national    banks 

(;») ---I    5<, 989.37 

9.  DiH>  from  State  banks  and  bank 

ers  (15) 

10.  Banking  house $ 

11.  Other  real  estate 

VI.  Fumitui-eand  tixfrs...  10,0(W 


2.  Surjdus  fund --- 

3.  Discount $13. 329. 45 

4.  Exchange 

5.  Interest 

6.  Premiums 

7.  Profit  and  loss 5, 277. 66 


Dollars. 


400,000 
70,000 


Kents  from  boxes 


8.  Circulation  received. ..$45, 000 
On  hand  and  returned. . 


9.  cttate  bank  circulation  outstand- 
ing  

10.  Dividends  unpaid 


15,  303.  36  I 
(*190, 131.58) 


13.  Cunent  expenses. 

14.  Taxes  paid 


6, 048. 24 


1  .'i.  Interest 

Exchange 

l(i.  Checks  and  other  cash  items 

17.  Exch'sfor  C.  II.  includggoldch'ks 

18.  Bills  of  other  national  banks 

19.  Bills  of  State  banks 

20.  Fractional     currency,    including 

nickels 

21.  Specie,  viz: 

Fractional  silver. . .  $2, 260. 50 

Silver  dollars 37,185 

Silver  Tr'v  cart's...        620 

(\o\A  coin 1,791 

Gold  Tr'y  cert's.-..       120 


10,000 


6, 048. 24 

747. 12 

191.14 

8, 979. 95 

53,  777. 10 

16, 038 


330.84 


22.  Legal-tender  nott^s. 


23.  U.  S.  cert's  of  dep.  for  legal  tendei's . 

24.  5  p.  c.  re<rn  fund  with  Treas.  U.  S. 

25.  Other  funds  with  Treas.  U.  S 


C.H.gold  cert's 

Cash  short  (recent). 


11.  Individual  <leposits.  viz: 

Subject  to  check.. $1,129,895.65 
Demand  certifs.. 
Time  certificates. 
Certified  checks.. 
Cashier's  checks. 


18, 607. 11 
78.00 


45,000 


155.77 


12.  United  States  deprtsits 

13.  Deposits  of  U.  S.  disbursing  offi- 

cers   • 


14.  Due  to  national  oanks  (6) 

15.  Due  to  State  bank  s  and  bankers  (3) 


16.  Notes  and  bills  rediscounted . 

17.  Bills  payable r-- 


1, 129, 895.  65 


104,991.22 
26, 174. 83 

(*131, 166.05) 


41, 976. 50 
l{4, 134 

2,250 


80,000 
3.42 


Total 1,794,902.58 


Cash  over . 


Total 1,794,902.58 


*  In  pencil  in  copy. 

Records:  Complete.     Bills  discounted  foimd  correct.     They  are  i)roved  quarterly. 

Other  books:  Very  well  kept.  2  individual  ledgers  (1,780%)  balanced  every  2 
months,  $229.41  short.     A  recent  difference. 

President :  Manager  of  bank.  Owns  2,420  shares  of  stock.  An  energetic  and 
laborious  officer. 

Vice-Prest.  Granville  B.  Haines  (dry  goods)  owns  791  shares. 

Cashier:  An  experienced  and  capable  officer. 

Directors :  10,  owning  4,211  shares  of  stock,  mainly  in  active  business.  Board  meets 
twice  each  week. 

Stockholders:  143.     All  have  certificate's  of  stock.     Par  value  of  shares  $50.     Sell, 

$55. 

Office:  Good  banking  room  in  largo  building,  comer  Chestnut  and  Juniper  sts., 
opposite  U.  S.  mint. 

Safe:  Good  safes  and  vault.    Safe-deposit  boxes,    2  watchmen. 

S 


!l     ':': 


I 

it 


^^6  INVESTIGATION    OF    NATIONAL    IJANKS. 

I>1VI1JKNI>8  AND   .SUJiPI.US   (SECTION  5199   OF   THE    REVISED   STATUTES   OF  THE    U.  8.). 

Da  te  of  last  flivitloml,  May  4, 1886.    Aiiiouiit  $    3  per  ct.     Carried  to  i»rotit 
and  loss jt    «  r.jt  «« 

LOAN'S  AX1>  DISCOUNTS. 

On  paper  with  two  or  more  individual  or  firm  names  (tl,.injuid-t22.r>60.;^)-${H>i>  H6<)  17 
On  MiugJe-name  paper  (one  person  or  lirm)  without  other  security  (demand 

$8.5,701.66) "_ $294  443.  15 

On  mortga«> es  a nd  other  real-estate  security .'.'.'.'.'.'.'.'.'..$      ' 

On  U.  8.  bomls  payable  on  demand .' '.'.'.'.''.'.'.'.'.'..$        8.50 

On  other  stocks,  bonds,  & c ,  ])ayable  on  deuuind '..'.'.'.'.'.'.'.'.'. '.'..'$  47  5()() 

On  time,  secured  by  colbitera Is .' *  j«'  uio 

lueluded  m  the  above  are — 

Bad  debts,  as  defined  in  Section  5201  of  the  lievised  Statutes  of  the 

ir.  s.--. ^ ^  ^ 

other  suspended  and  overdue  paper '...'.'. .'.'.'.'.'. $80  023  <i5 

Liabilities    of   directors    (individual    and    firm)    as    payers    (finii,  " 

$84,558.83) ^  ^-j  -.-^  ^ 

Loans  exceeding  the  limit  prescribed  by  Section  .■»20()  of  the  KeviHed  Stat-        ' 
ntes  of  the  V.  S.,  viz : 

•^Shellcnberger  &  Sheble,  "  none  (C.  M.  Shellenl>erger  is  a  director 
with  100  shares  of  stock).     Own  order 50  000 

(iENERAL  REMAKKS. 

"Overdrafts" :  All  are  recent  and  good  except  85.88,  which  are  doubtful .$    7, 861. 07 

/'Expense  %":  Of  this -J^  ($6,  (U8. 24)  $2,020,  all  overdue  notes,  stated  to  have  })een 
charged  to  this  %  through  the  inadverteiue  of  the  clerk.  They  were  charged  to  the 
*♦  Profit  and  loss  "  during  this  examination. 

"  Pasi-due  paper. " 

Due  1885,  "Ely,  Hursberger  &  Ely,''  failed,  balance  from  $2,300,  difference 

charged  oflf ;  hopeful *j  qqq  y^ 

Due  1885,  " Haverly, "  endorsed  "Southwell, "  in  suit ;  liopoful . l ' 800  00 

Due  1885,  two  notes  and  bals. ;  hopeful '  359'  4Q 

Due  1886,  "  Eltonhead ,"  endorsed  "  Pfciffer ; "  some  loss  iikel v 9  (XX)  00 

Due  1886,  "The  William  Wilson  &  Son  Silversmith  Co., ''  Philada.,  failed  "' 

balance  from  $16,000,  difference  p'd ;  good /  14  1^2  47 

Due  1886,  ten  notes,  recent ;  good ..'.'.'.'...  lo' 290  80 

:W,  023. 65 

Balances  with  other  banks  including  reserve  agents  have  been  verified  bv  corre- 
spondence. *'  / 

The  bank  rents  the  entire  building— a  part  of  which  it  (Hcui.ics— for  $9,000  receiv- 

^    mg  rents  of  $3,900  for  offices,  etc.,  making  its  net  rental  $5,100. 

This  bank  is  the  legally  authorized  depository  for  the  city  of  Philadelphia,  and  has 

to-day  a  balance  to  credit  of  "city  fimd  %"  of  $2f)5, 487.25. 
Since  the  increase  (to  $400,000)  of  its  capital  stock,  this  bank  has  not  only  streujrth- 

ened  its  board  of  directors  but  has  likewise  materially  enlarged  its  business  and 

consequently  improved  its  prospects  of  success.  ' 

George  K.  Preston,  president  of  the  "Hibemia  National  Bank  "  of  New  Orleans  La 

having  a  residence  in  this  city,  is  a  director  of  this  bank.  '       *' 

AV.  r.  Drew, 

n-    ^1.     r^  Examiner. 

lo  the  Comptroller  of  the  Curkkxcy, 

WaahingtoHf  D,  C, 


INVESTIGATION   OF   NATIONAL   BANKS. 

Exhibit  F. 


37 


[No.  of  bank,  2291.] 
[Use  the  blank  lines  if  necessary,  but  do  not  er^e  or  change  any  of  the  printed  it^ius.] 

Beport  of  tU  conditio^i  of  ike  Keystone  National  Bank,  at  P1^lada',f  the  State  of  Penna., 
'^       0/  ^^  ^^^  ^^^^^    .  hu8in€S8  on  the  3d  daif  of  Jvne,  188G. 


Db. 


Besources. 


1.  Loans  and  discounts  (see  schedule) 

2.  Overdrafts :"*",";•""* 

3.  U.  S.  bonds  to  secure  circulation 


(par  value),  3  per  cents  . 

4.  U.  S.  bonds  to  secure  deposits  (par 

value) - ,*  ■  *  t '  * 

5.  U.  S.  bonds  on  hand  (par  value) .. 

6.  Other  stocks,  bonds,  and  mort- 

gages (see  schedule) 


Dollars. 


1,180,046.65 
642.80 

50,000.00 


Liabilities. 


1.  Capital  stock  paid  in 


7.  Due  from  approved  reserve  agents 

(see  schedule) vr"V 

8   Due  fioni  other  national  banks  .  -  - 

9*.  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10.  Banking  house $ 

11.  Other  real  estate. % 

12    Furniture  and  fixtures  $10, 000.  ou 


2.  Surplus  fund 

3.  Undivided  profits. 


56, 860. 78 
49, 936. 83 

19,767.78 


10, 000. 00 
1, 469. 42 


4,  Circulating  notes  received 

from  Comptroller .$ 

Less  am't  on  hand  and  in 
I'reasury  for  redemp- 
tion   ^ 


5,  363.  29 

142, 059. 14 

14.240.00 

247.59 
2,000.00 


5.  State  bank  circulation  outstand- 

ing   

6.  Dividends  unpaid 


13.  Current  expenses  and  taxes  paid. . 
14    Premium  paid— On  bonds  for  cir- 
culation $        Other  premiums  $ 

15.  Checks  and  other  cash  items  (see 

schedule) - 

16.  Exchanges  for  clearing  lionse 

17.  Bills  of  other  hanks ."{L'{' 

18.  Fractiimal  paper-currency,  nickels 

and  cents 

19.  Trade  dollars 

20.  Specie,  viz: 

Gold  coin ..$23,650 

Gold  Treasury  certifi- 
cates (sec.  254,  Rev. 
Stat.) 

Gold  clearing  house 
certificates ^-^  000 

Silver  coin — Dolls., 
12,300;   fract'l,  5,575.  17,875 

Silver  Treasury  cert  it-  1 

icates     (act     Feb'y 

2^'^*^^^ ^    66,525.00 

*,    X        w^.wi.-v  T.ftt4-s  1  106.000.00 

21.  Legal-tonutT  notes...-. .,  V     1 

2«>     US.  certificates   of  deposit_lor 

iegal-tender  notes  (sec.  5195^  Rev. 

'»•{    Redemption  fund  with  I'.S.Treas- 
"  '      urer  (not  more  than  5  per  cent 

in  circulation) -  -  ■  -  - 

•»4  Due  from  U.  S.  Trea,surer  (other 
than  5  per  cent  redemption 
fund) 


7.  Individual    deposits 

subject  to  check  .  .$1,160,467.69 

8.  Demand    certificates 

of  deposit $ 

9.  Time  certificates  of 

deposit $ 

10.  Certified  checks $ 

11.  Cashiers  checks  out- 

standing tellers' 

due  bills $      5,603.12 


12.  United  States  deposits -  -  -  ■ 

13.  Deposits    of  U.   S.    disbursing 

officers ■ 


14.  Due  to  other  national  banks 

15.  Due  to  State  and  private  banks 

and  bankers 


16.  Notes  and  bills  re-discounted ... 

17.  Bills  payable 


r^),  000. 00 


'J,  250.  00 


Totad 


i  1.757.409.28 


Total 


DoUars. 


400,000.00 

70, 000. 00 
11, 258. 57 


45,000.00 


4, 960. 59 


1,166,070.81 

43,314.02 
16, 805. 29 


1,757,409.28 


T  C    W  Marsh  cash'r  of -The  Keystme  National  Bank.  Philada.,  Penna.,'- do  solenmlysw^^ 
the  abo^st'Jt'Jnie^.Hs  true  to  the  best  of  my  knovvledge  and  belief.  ^,    ^^    ^^^^^   ^^^^^^^ 

Correct.     Attest:  I^ris  Drkka, 

l).P.S.NiCHOiA 
Samvei.  Lupas, 

IHreetor*. 

State  of  Pennsylvania,  County  of  Philadelphia: 

slom  to  and  subscribed  before  me  this  tenth  day  ot  June,  l^^-^^^^  ^   ^^^^^^   y^^^^  p^^^. 

M&Unowledged  before  an  oflicer  having  an  oflicial  seal.    See  act  approved  Feb.  26. 1881. 


ii 


'III  > 


fljl 

■J 


■4 


ra 


.i. 


if;' 

.1 

i  'i 


38 


INVESTIGATION   OF   NATIONAL   BANKS. 

SCHEDULKS. 
Loatm  and  diwonvts. 


On  pai>er  witli  two  or  more  iiulividiial  or  firm  names $839,  746. 65 

On  single-name  paper  (one  i>er8on  or  Arm)  without  other  security $101,  800. 00 

On  mortgages  and  other  real-estate  security $ 

On  U.  S.  Donds  (demand  loans) $ 

On  other  st04ks,  bonds,  <fcc.  (demand  loans) $ 

On  time  secured  by  collaterals $138,500.00 

Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat $ 

Other  suspended  and  overdue  paper $    8,867.43 

Liabilities  of  directors  (iudividuul  and  firm)  as  payers $  20, 700. 00 


1, 180, 046. 65 


Other  stoekt,  bonds,  and  mortgages. 


Due  from  approved  reserve  agents. 


Tradesman's,  N.  Y. 
Hanover 


$41,132.53 
15,  728. 25 


J>uefrom  State  and  private  hanks  and  bankers. 
[Such  items  only  as  exceed  one-tenth  of  the  capital  of  this  bank.] 


f'lierkftavd  other  rash  items. 


Checks  and  dralts  on  banks,  a.«  ..  in 

this  city  -•- '      $5.  :sfi3. 2»>  j 

Internal-revenue  stumps ' 

Coupons 


r.  S.  refinidinvr  <»rtLflcateH 


Average  reserve  and  interett.-  A\eTaiio  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  25.89  per  rent  of  deposits  and  bank  )»alance.  Th*'  highest  fate  of  interest  paid  bv  the  ttank  is  :i 
per  cent. 

The  Witness.  A  report  of  condition  inierveiK'd  between  those  two 
dates,  from  June,  1886,  about  thirty  days  after  the  capital  was  first 
increased. 

Q.  Have  you  copies  of  the  papers  relating  to  the  certificate  given  by 
the  Comptroller  showing  the  increase  of  the  capital  stock?  If  so,  give 
the  date. — A.  The  first  letter  alluding  to  nn  increase  of  the  capital 
stock  was  addressed  by  John  O.  Lucas  to  tlic  Hon.  H.  W.  (Gannon, 
Comptroller,  on  l^ovember  5, 1885. 

Q.  And  the  certificate  I— A.  The  final  certificate  of  Comptroller  Tren- 
holm,  ai)proving  the  increase,  was  dated  May  5, 1886. 


^ 


.  >■ 


INVESTlGAtlON   Oi?   NATIONAL   BANKS. 


39 


( )   The  rell  eSate  appeared  on  the  assets  between  June  and  October, 

m  AV^*^  30     Th;;anie  it^m  is  stated  on  the  1st  of  October  1881 

X'  the  bSS  house  had  '^^-^rrT.tm^^^f^C'n^^^^^ 
and  loans  and  discounts  were  set  down  at  |68^,^^^.»l,  ^.nowing  d 

nrpase  of  about  $100,000  between  the  two  dates.  *    Tps 

Q  That  is,  an  inci^ease  in  the  items  of  loans  and  discounts!-A.  Yes, 

sir. 

Bv  Mr.  Sperry  :  j  v.     i 

Q   Is  there  any  increase  in  the  amount  due  to  other  banks  and  bank- 

!j;"»'Cl  ir.k.  In  (UlKT, «.  that  ™ul.l  be  m  „,».6U,«o...t  d.tor- 
once. 

BvMr.  Oox:  „        .,      •,. 

O   There  is  a  loss  of  $40,000  of  assets  in  real  estat*.    Now,  the  dis- 
nnmits  and  loansTncrease  up  to  a  certain  amount,  as  appears  from  the 
rext^atemenrbut  it  does  not  increase  enough  to  cx)ver  the  amount  o 
?e^  eSSr  I  want  to  know  whether  that  real  estate  appeals  m  any 
other  tbrm. 

By  Mr.  DiCKEESON :  ^     i  „»♦ 

o  Mav  be  it  appears  under  the  head  of  "due  from  other  banks'  t— 
A  ^ThP  amount  due  from  State  banks  and  private  banks  is  increased 
alK.ut  IS  TTe  specie  on  hand  increased  during  this  per.od  about 
|S,0(M),  according  to  the  report. 

By  theOHATRMAN:  J    4.  1    ^ 

O  Give  us  the  totals  of  assets  at  the  two  Perio1«--A- l^e  ^oUii^- 
souiveslvnd  liabilities  on  June  30,  1881,  ff^.^l'if  ^^^^^^^-go^"  *"' 
1st  of  October,  1881,  the  sum  totals  were  stated  at  $1,100,194.80. 

O«30  000  drops  out  there.  They  may  have  sold  the  property  lo. 
1.  ^'tlT^n  is  stated  on  the  books.  That  would  account  for  it.— A.  That 
seem^to  i^^  accmntM  by  the  reduction  in  the  surpUis  yl"ch,  on 
rtT.Jf  1«S1  was  stated  at  «60,0(K),  and  on  the  1st  of  October,  l.s81, 
ft  S.S  ar$2lf^  whil  would  seem  to  indicate  that  there  was 
a  loss  in  the  real  estate  of  $3.5,000. 

By  Mr.  Dickebson  :  ^    ..  ,  ,  ^  ♦ 

O  Ts  there  any  dividend  distributed,  or  was  it  on  at^count  ol  debts  .— 
A%  Su  not  Se  1  will  make  a  memoranduin  t«  have  the  reportsot 
dividends  certified  and  sent  up  for  the  periods  m  1881, 1886,  and  1888. 

By  Mr.  Cox: 
Q.  From  the  examination  you  have  given  these  reports,  do  you  th.^^^ 
that  that  *140,(KK)  in  real  estate  appears  in  any  item  in  tho^  repoits 
after  it  disappeared !-A.  Of  course,  it  would  take  *  J^'y^^^f ', 

analysis  to  state  exactly  the  facts  m  '•«l'*t»«'i,  *«  *^^h  Ji'Lo'^Xreas 
loans  and  discounts  and  other  items  amount  to  aboAtS12o,W)0,  ^^here^) 
the  loss  seems  to  have  been  charged  to  th««inonT.t  ot  about  «^ 
Those  two  together  would  represent  the  value  of  the  leal  e*tati  ii  it  is 


I 


40 


lNVb:STIGA'I'ION    OF    NATIONAf.    BANKS. 


A 


a  loss;  but  there  does  not  seem  to  be  any  statement  showing  that  the 
bank  i)roi>erty  was  sold  and  that  it  went  into  the  assets  of  the  bank. 

By  Mr.  Spebry  : 

Q.  That  answer  assumes  that  the  other  items  were  stationary. — A. 
The  att'airs  of  every  bank  are  kept  by  double  entry  bookkeeping.  What 
is  charged  to  one  account  must  be  taken  from  another,  so  that  the 
statement  of  resources  equals  those  of  the  liabilities;  and  while  there 
may  be  tluctuations  or  changes  in  several  items,  still  there  is  nothing 
inconsistent  with  the  fact  that  the  real  estate  was  sold  and  went  into  it. 

Q.  Loans  and  discounts  might  disagree.  Your  answer  assumes  tliose 
to  be  stationary. 

By  Mr.  Walker  : 

Q.  Any  sensible  man  in  double  entry  bookkeeping  sets  down  and- 
charges  up  the  double  accounts,  and  sees  what  is  left.  The  question 
js  whether  after  thus  taking  off  the  froth  the  assets  of  the  bank  were 
the  same  after  the  bank  was  sold  as  before,  or  what  the  difference  was! 

By  the  Chairman  : 

Q.  The  difference  seems  to  be  $35,000,  which  is  charged  to  undivided 
l>rolits?— A.  In  the  matter  of  liabilities  the  deposits  seem  to  have  been 
increased  only  about  $9,000  between  the  two  dates.  But  it  is  not 
inconsistent  with  correct  bookkeeping  to  conclude  that  the  increase  in 
loans  and  discounts,  and  other  items  mentioned,  would  represent  the 
real  estate,  if,  as  we  supposed,  there  was  a  loss  of  $35,000,  which  was 
charged  against  the  surplus  acc^ount.  I  do  not  say  that  that  is  the  fact; 
but  it  would  sustain  the  statement. 

By  Mr.  Sperry  : 

Q.  An  analysis  of  the  two  statements  would  justify  that  conclusion, 
you  think  f— A.  I  think  so,  so  far  as  it  appears  by  the  two  reports. 

By  Mr.  TowNSEND : 

Q.  You  could  not  tellwithout  looking  at  the  books?— A.  It  would  take 
an  expert  with  the  books  of  the  bank  to  demonstrate  it.  In  the  report 
of  an  examiner  he  simply  records  the  actual  changes  that  have  taken 
place:  but  he  does  not  rec^ord  the  several  transactions  that  led  up  to 
those  changes. 

By  Mr.  Sperry: 

Q.  Do  you  require  the  examiner  to  value  the  real  estate?— A.  We 
always  do  now;  it  was  not  dcmc*  in  the  early  reports;  but  now  the 
iners  are  required  to  value  every  asset  in  the  bank. 

Q.  Includingreal  estate?— A.'  K very  item,  real  estate,  personal  prop- 
erty, and  everything;  and  at  the  end  of  the  report  those  are  rec^apitu- 
lated  and  the  exac^t  amount  estimated  is  stated. 

Q.  Did  the  bank  examin<»rs carry  those  items  to  this  report?— A.  I 
would  not  want  to  state  anything  in  relation  to  that,  because  this 
occurred  before  1  became  Comptroller,  and  the  reports  show  what  is 
actually  done  in  that  partic;ular  case. 

Q.  You  say  the  examiners  are  re(iuired  to  examine  the  assets.  Do 
the  exajniners  attempt  to  value  Wut  credits  of  the  bank  ?  Do  they  take 
the  paper  of  the  bank?  Is  an  examiner  expected  to  know  what  the 
value  of  that  paper  is?— A.  lie  is  to  place  his  valuation  upon  it  to  the 
best  of  his  ability.  Of  course  an  expert  examiner  going  through  paper 
can  usually  tell  whether  it  is  business  or  accommodation  paper.  If  it 
has  all  the  ear-marks  of  being  genuine,  he  puts  it  down  as  good  paper. 


INVESTIGATION    OF    NATIONAL    BANKS. 


41 


If  it  is  accommodation  paper,  he  makes  a  memorandum  and  inquiies  as 
far  as  possible  of  the  oflftcers  of  the  bank,  and  sometimes  from  outside 
•IS  to  the  (credit  oithe  maker  or  indorser  cm  accommodation  paper,  and 
in  that  way  arrives,  as  near  as  possible,  at  an  idea  ot  whether  it  is 

iloubtful  or  worthless.  .  ^,  .  , , 

O    If  the  director  of  a  bank  should  put  in  paper,  the  examiner  would 

be  expected  to  know  it,  would  he  I— A.  He  would  be  expected  to  report 

as  soon  as  he  ascertained  the  relation  of  any  director  to  that  paper;  but 

he  might  be  deceived.  ^      .  ^  x         .e 

Q  Wcmld  he  be  expected  to  know  the  business  reputation  ot  any 
m^'er  of  a  note  which  api)ears  in  the  bank?— A.  He  is  not  charged 
with  the  study  of  that  question;  but  in  an  exammation,  for  mstance,  in 
Philadelphia  of  forty  banks  he  very  soon  comes  to  find  out  who  are  the 
chief  borrowers  in  those  banks.  Where  he  finds  an  individual  appear- 
ing in  various  banks,  and  occasionally  with  his  notes  past  due  or  under 
protest,  or  where  a  bank  has  charged  oft*  his  paper,  the  information 
obtained  by  such  an  examination  soon  gives  him  an  acquaintance  with 
all  the  paper  that  is  presented  for  discount  in  a  given  city. 

Q.  Suppose  the  clerk  of  a  director,  an  irresponsible  person,  should 
make  paper  pavable  to  his  order,  would  the  bank  examiner  be  expected 
to  know  by  whom  it  was  made?— A.  He  would  be  expected  to  report 
it  if  he  found  that  it  was  made  by  an  irresponsible  party.     We  reqmre 
examiners  to  possess  information  to  a  greater  or  less  extent.    They  are 
expected  to  be  thorough  and  careful,  and  to  give  the  office  all  the  infor- 
mation that  they  can  get  as  to  paper. 
By  Mr.  Cox : 
Q.  In  going  through  the  papers  of  the  bank,  suppose  the  examiner 
finds  that  the  names  of  the  directors  or  officers  of  the  bank  appear  as 
borrowers,  is  it  his  duty  to  report  that  fact  to  you?— A.  He  is  always 
required  to  report  the  amount  of  liabilities  found  in  any  bank  against 
officers  and  directors.    That  is  stated  in  his  report. 
By  the  Chairman: 
Q.  I  think  that  is  a  comparatively  new  regulation.— A.  It  has  been 
in  existence  ever  since  I  have  been  in  office,  and  I  think  it  was  in  exist- 
ence some  time  before  that. 

Q.  Turn  to  that  report  of  July,  1886,  and  see  if  it  is  there.  I  do  not 
think  it  is.— A.  For  instance,  in  the  report  of  Mr.  Drew  upon  this  bank 
in  eluly,  1886,  he  states  the  liabilities  of  directors  as  $97,558.8:^.  The 
examiner  is  always  expected  to  report  it. 
By  Mr.  Cox : 
Q.  I  think  it  is  a  tact  that  this  has  been  required  of  national  bank 
examiners  substantially  since  the  passage  of  the  law.— A.  I  can  not  say 
how  far  back  it  goes.  The  requirements  of  examiners  have  increased 
from  year  to  year.  If  you  will  look  at  these  reports  covered  by  the 
period  under  examination,  you  will  find  that  there  has  been  an  increase 
in  the  demand  on  examiners.  The  blanks  upon  which  they  make 
reports  contain  an  infinitely  larger  number  of  requirements  than  they 
did  five  years  ago. 

Q.  The  duties  have  been  enlarged?— A.  The  duties  have  been  added 
to.  For  instance,  I  have  issued  three  new  sets  of  instructions  within 
the  last  year.  In  1891  there  were  issued  three  new  sets  of  instructions 
covering  the  points  of  danger  developed  by  failures  that  have  occurred. 
The  Chairman.  There  is  nothing  in  these  reports  that  show  the 
market  price  of  bank  stock  in  any  way? 


■    mi.  LI 


iH 


'  t 

1 


H  !' 


42 


INVESTlGAtlOK   OF   NATIONAL   BANKS. 


Mr.  DiCKERSON.  Does  it  show  the  increase,  whether  it  is  more  than 
pari  ' 

1  ^'  ^^.*^^}y  ^^^  ^^^^^  *^^  examiner's  report  states  the  par  vahie  of  the 
shares  at  $50,  and  the  selling  value  at  $o5. 

.3'  ^***li?re  is  no  other  question  in  regard  to  this  increase  of  stock  in 
l»«b,  we  will  pass  on  to  the  next  item.  The  capital  stock  was  increased 
again?— A.  It  was  increased  $100,000  in  1888. 

Q.  Give  us  the  date  of  the  application  for  that  increase,  and  the  date 
when  the  increase  was  approved?— A.  On  the  10th  of  January,  1888, 
the  stockholders  had  a  meeting,  adopted  a  resolution  authorizing  the 
increase  of  the  capital  stock  in  the  sum  of  $100,000,  making  the  total 
capitalization  $500,000.    The  cashier  made  the  proper  certificate  that 

1  qLI^Iu^'V^^  ^^  J^,^®"?  P^'^  ^^  ^^'  October  30,  1888.  On  November  3, 
1888,  the  Comptroller  issued  his  certificate  approving  said  increase. 

y.  Will  you  turn  to  the  statement  of  condition  of  the  bank  immedi- 
ately preceding  the  January  meeting  in  1888  f— A.  The  last  report  of 
condition  prior  to  the  meeting  of  January,  1888,  shows  the  condition  of 
TJie  Dank  at  the  close  of  business  on  December  7,  1887. 

^1  \  ^1^1  ^^"  S!7®  "^^  *^^'  ^^^®  ^^  ^^^  "®x*  statement  of  condition  of 
the  bank  f— A.  The  next  report  was  for  the  1.4th  of  February,  1888. 

^T.^;.u  ."l?  *^^^^  *^^  statements,  the  loans  and  discounts  is  stated  on 
the  7th  ot  December,  1887,  to  be  $1,294,048.40.  What  is  the  amount 
ot  the  loans  and  discountsaccordingtothat  statement?— A.  According 
to  the  statement  of  February  14,  1888,  it  is  $1,239,576.02. 

Q.  Amount  due  from  approved  reserve  agents  according  to  the  De- 
^T^l'r^oTJ.^  '"  1102,697.74 !-A.  According  to  the  February  report  it 

Q.  Amount  due  from  other  national  banks  is  $94,233.66 ?— A  The 
amount  in  the  February  report  is  $41,246.54. 

Q.  What  is  the  amount  due  from  State  and  private  banks  according 
to  that  report?- A.  It  is  $15,657.18.  ^ 

Q.  Due  on  exchanges  tor  clearing  houses,  *126,828.08?— A.  It  is 
stated  m  the  February  rei)ort  at  $182,007.43. 

Q.  That  item,  as  1  understand  it,  means  balances  due  from  other 
banks?— A.  No,  sir;  the  item  of  exchanges  for  clearing  houses  is  the 
amount  of  checks  deposited  to-day  for  the  credit  of  the  customers  of 
tne  Keystone  Bank,  Avhich  on  to-morrow  it  will  send  to  the  clearing 

Q.  It  means  checks  of  individuals  drawn  upon  T)aiiks  other  than  the 
Keystone,  and  deposited  with  the  Keystone?-A.  Yes,  sir;  the v  are 
deposited  one  day  and  paid  the  uext  morning. 

Q.  The  surplus  fund  is  stated  at  $88,000  in  this  report?— A.  In  the 
February  report  it  is  stated  at  $88,000. 

re^iVt^tfs^S^fs^r^^^  ^^  112,166.33?— A.  A<>cording  to  the  February 

7A^^;r^^^A^T^xJ  due  depositors,  including  tellers' due  bills,  is  $1,352,- 
f{mr  *^  February  report  it  is  $1,404,788.90. 

Q.  The  amount  due  to  other  national  banks  is  stated  at  $32,767.74?— 
V  r^^^^^^S  ^^  ^^^  February  report  it  is  stated  at  $46,097.02. 

A  ^\  The  amount  due  State  and  private  banks  is  stated  at  $14,447.10  *— 

A.  According  to  the  February  reiwrt  it  is  $15,513.44.    The  total  liabili- 

ties  and  resources  is  $2,037,729.78. 
Q.  The  amount  stated  here  is  $1,040,113.43? 


INVESTIGATION   OF   NATIONAL   BANKS. 


43 


Exhibit  H. 

No.  of  bank,  2291. 
[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Beportof  tU  condition  of  ^^  The  Keystone  Xationf  Bank,ytPhilada    in  the  State  of 
nepori  oj  p^^  J  f^e  close  of  humnex.^  on  the  7  day  of  Decern.,  188i. 

Cb 


Bb. 


Resources. 


1.  Loans  and  discounts  (see  schedule) 

2.  Overdrafts ;--.---■ 

3.  U.S.  bonds  to  secure  circulation 

(par  value)  4.^  per  cent 

4.  U.  S.  bonds  to  secure  deposits  (per 

value) ■ 

5.  U.  S.  bonds  on  hand  (par  value) . .  - 

6.  other  stocks,  bonds,  and  mortgages 

(see  schedule) 


Dollars. 


1,294,648.48 
1, 142. 67 

50,000 


Liabilities. 


7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  Due  from  national  banks 

9.  Duo  from  State  and  private  banks 

and  bankers  (sec  schedule) 

10.  Banking  house $ 

11.  Other  real  estate $ 

12.  Furniture  and  tixtures. . .  $10, 000 


102,  667. 74 
94,  233. 66 

28,  315. 74 


1,  Capital  stock  paid  in 


2.  Surplus  fund 

3.  Undivided  protits. 


4.  Circulating  notes  re- 
ceived from  Comp- 
troller  $ 

Less  am't  on  hand 
and  in  treasury  for 
redemption $ 


Dollars. 


400,000 

80,000 
12, 166. 34 

45,000 


5.  State  bank  circulation  outstand- 


13.  Current  expenses  and  taxes  paid.. 

14.  Premium  paid— on  bonds  for  circu- 

lation $——;  other  premiums.$ 


6.  Di\idends  unpaid. 


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  for  clearing  house 

17.  Bills  of  other  banks 

18.  Fractional papercurrency,  nickels 

.Mid  oCntb 

19.  Specie,  viz: 

Gold  coin $43,700 

Gold  treasury  certifi- 
cates (sec.  254,  Rev. 
Stat.) $ 

Gold  clearing-house 
certificates .  - $40, 00(t 

Silver    coin:    Dolls..  I 

16,400 ;  fract'l,  9,639.     .$20. 039 

Silver  treasury  certi 
ficate8(actFeb'y28, 
1878) $ 


7.  Individual     deposits 
10, 000        I  subject  to  check  .  .$1,265,613.70 

3,329.04  1     8.  Demand   certificates 

of  deposit $ 

3,999.32  !     9.  Time  certificates   of 

|i  deposit $ 

i  10.  Certified  checks $ 

8,041.45      11.  Cashier's  cheeks  out- 
126,828.08  II            standing;     tellers'        ^  ^^^  ^, 
!|  due  bills $88,093.05 


2, 025. 50 


4,369 
549. 25 


109,  739 
80.  (HtO 


20.  Legal-tender  notes 

21.  U.  S.  certificates  of    deposit  fori 

leeal-tender  notes  (sec  5193,  Kev.l 

Stk) !    20.000 

22.  Redemption  fund  with  U.S.Treiis- 1 

urer  (not  more  than  r.  per  cent .  i 

on  circulation) 2, 2.'»<» 

23.  Due  from  U.  S.  Tieas^ui-er  (other  ; 

than   5    i>er    cent  redemption  i 
fund) ' 

Total 


12.  United  States  deposits 

13.  Deposits   of    V.    S.    disbursing 

officers • 


1,353,706.75 


14.  Due  to  other  national  banks I      32, 767. 74 

l.'"».  Due  t(»  State  and  private  banks  ; 

and  bankers 14,447.10 


16.  Xotes  and  bills  redis<'ounte<l. 

17.  Bills  payable 


1,»40,J13.43 


Total 


1.940.113.43 


I 

that 


do  solemnlv  swear 


G  W  Marsh  cashier  of  "The  Kevstone  National  Bank,  Philadelphia,  Penna.,' 
It  the  above  statement  is  true,  to  tli.-  l)est  of  my  kn«»wledge  and  belief.      ^      ^   Marsh   Caihur 


Correct.    Attest: 


State  of  Penna.,  County  of  Philada. : 

Sworn  to  and  subscribed  before  me  this  14th  day  of  December.  1887. 
[seal.] 


Granvillk  B.  Hainks, 
LoiTis  Dbeka, 
1).  P.  S.  Nu  HOI.S, 

Direetort. 


John  W.  Barrow, 

Notary  Public. 


ICost  be  acknowledged  before  an  officer  having  an  official  seal;  see  act  approved  Feb.  26,  1881. 


*    >■■ 


J 11 


44 


INVESTIiJATION    OF    NATIOXAL    D.4NKS. 


SCHEDULES. 
Lomiut  and  discounts. 


On  ])aper  with  two  or  more  individual  or  firm  names $1  156  O"?  06  ' 

On  »*ingle-name  paper  (one  person  or  firm)  without  other  security .....  $  '  i:w'  6~1  4"     *1  '^4  fiis  aa 

On  mortgages  and  other  real-estate  security '  %  -»*,o4o.« 

On  U.  S.  bonds  (demand  loans) | 

On  other  stocks,  bomhi,  &.c.  (demand  loans) .!.!!!!.!. | 

All  other  loans | 

Included  in  the  above  are — 


Bad  debts,  as  deflne<l  in  section  5204,  Rev.  Stat ik 

Other  suspended  and  overdue  na})er I 

Liabilities  of  directors  (individual  and  firm)  as  pavers"  ] | 


14, 325. 47 
64,  573. 36 


Other  stocks,  bonds,  and  mortgages. 


Due  from  approved  reserve  agents. 


'I 


Tradesmen's,  N.  Y i    $76,736.74 

Hiuiover.N.Y I      45.931.00 


Due/rom  StaU  and  private  banks  and  bankers. 
[Such  items,  only,  as  ex««ed  one  tenth  of  the  capital  of  this  bank.] 


/; 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 
this  city. 

Internal-revenue  stamps 

Cou{K>n8 , 


$8, 041. 45 


U.  S.  refunding  certitii'rttes. 


Average  reserve  and  interest  —Average  reserve  for  last  30  days  (in  bank  and  with  reserve  airents)  Avas 
>^%  per  cent  of  deposits  and  bank  bafauce.    The  highest  rati  of  int^resFpaid  by XTaK  3  ™ 


25 
cent. 


\  m 


INVESTIGATION   OF   NATIONAL   BANKS. 

Exhibit  I. 


45 


No.  of  bank,  2291. 
[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  it«m8.] 

D        4    f4h^  ^r^^tiiuinn  of  '*  The  Keustone  National  Bank,"  at  Philada.,  in  the  State  of 
Report  of  %^^;^^'^Z ^e  closTof  business  on  the  14th  day  of  February,  1888. 

Db. 


Resources- 


Dollars. 


1.  Loansanddi8Count«  (see  schedule) 

2.  Overdraft*  (see  schedule)  .....----■ 

3.  U.  S.  bonds  to  secure  circulation 

(par  value)  —  per  cents,  4*  per 
cents - .- -  -;  • : ' 

4.  IT.  S.  bonds  to  secure  deposits  (par 

value)  —  per  cents V'T" 

5.  U.  S.  bonds  on  hand  (par  value)— 


1,239,588.62 
1      2, 842. 51 


Liabilities. 


6. 


per  cents - v '  *  v  * 

Stocks,  securities,  judgments,  etc. 
(see  s<hednle) 


8. 
9. 

10. 
11. 

12. 

13. 
14. 


Due  from  approved  reserve  agents 
(see  scheaule) - 

Due  from  other  national  banks. .  - . 

Due  from  State  and  private  banks 
and  bankers 

Banking  house $ 

Furniture  and  tixtures $10, 000 


Other  real  estate  and  mortgages 
owned  (see  schedule) —  - 

Cunent  expenses  and  taxes  paid. 

Premium  on  bonds  for  circulation. 
$3,992.32.  Premium  on  other  U. 
S.  bonds,  $  — 


50,000.00 


157, 271. 67 
41, 246. 54 

15, 657. 18 

10, 000. 00 

12,388.69 

3, 992. 32 


1.  Capital  stock  paid  in .......  • 

Paid  in  a(?<'ount  new  capital. 

2.  Surplus  fund 

3.  Undivided  profits 


4.  Circulatin  g  notes  received 

from  Comptroller $ 

Less  amount  on  hand  and 
in  Treasury  for  redemp- 
tion or  in  transit $ 


Dollars. 


400,000.00 
23, 940. 00 
80.  000. 00 
21, 511. 42 


5.  State  bank  circulation  outstand- 

ing  ' 

6.  Dividends  unpaid 


7.  Individual    de- 

posits subject  to 

check $1,304,839.73 

8.  Demand  certificates 

of  deposit $ 

9.  Time  certificates  of 

deposit $ 

10.  Certified  checks $ 

11.  Cashier's    checks 

outstanding  (tell- 
ers' due  bills)  .  -  -  -$      99, 949. 17 


45,000.00 


889.00 


15.  Checks  and  other  cash  items  (see  I 

schedule) I  12/,  330. 49 

16.  Exchanges  for  clearing  house 182, 007. 43 


17. 
18. 

19. 


Billsof  other  banks 

Fractional  paper  currency,  nickels, 

and  cents 

Specie,  viz: 

Gold  coin $    7, 000 

Gold    Treasury     cer- 
tificates  $ 

Gold     clearing  house 

certificates $110,000 

Silver  dollars $    7,  554 

Silver    Treasury  cer- 
tificates   $ 

Fractional  silver  coin 


6,200.00 
413.33 


12.  United  States  deposits 

13.  DepositsofU.S.disbursingolticers 

14.  Due  to  approved  reserve  agents 

(see  schedule) 

15.  Due  to  other  national  banks 

16.  Due  to  State  and  private  banks 

and  bankers 


1,404,788.90 


20.  Legal-tender  notes 

21.  United  States  certificates  of  de- 

posit for  legal-tender  notes  (sec. 
5195,  Rev.  Stat.) 

22.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent  on 
circulation) 

23.  Due  from  U.  S.  Treasurer  (other 

than    5    per    cent    redemption 
fund) 


124, 554. 00 
63, 000. 00 


2,250.00 


Total 2,037,739.78 


17.  Notes  and  bills  rediscounted . 

18.  Bills  pajable 


46, 097. 02 
15,513.44 


Total. 


2,037,739.78 


I  G  W.  Marsh,  cashier  of  "  The  Kevstone  National  Bank,  Philadelphia  Pen na.  do  spleinnly  swear 
that  thraW  statement  is  true  to  tlie  best  of  my  knowledge  and  belief,  and  that  the  schedules  on 
back  of  the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  state  of  the 
several  matters  therein  contained. 


Correct.    Attest: 


G.  W.  Marsh,  Carter. 

Granville  B.  Haines, 
LouiB  Dreka, 
Samuel  Lucas, 

Directors. 


State  of  Pennsylvania,  County  of  Philadelphia: 
Sworn  to  and  subscribed  l>efore  me  this  21st  day  of  February,  1888. 

(SEAL.]  J^O 


F.  llEARDON,  Notary  Public. 
Must  be  acknowledged  before  an  officer  having  an  official  seal.    (See  act  approved  Feb.  26, 1881.) 


H 


"5       '    I 

11 


!    J 


46  INVESTIGATION   OF   NATIONAL   BANKS. 

[ITill  all  schedules,  writiug  in  the  word  "None"  whenever  no  amount  is  to  be  entei^ed.] 

SCHEDULES. 

-Loans  and  ditcountt. 

On  demand  on  IT.  S.l)ond8 i 

"         "'        "  stocks,  bonds,  and  other  personal  securities !!!."!!..$ 

C)n  )>ai>er  with  two  or  more  individual  or  Ann  names .'.*..*."..  $1, 027,  378. 62 

"    single  name  paper  (one  i>erHon  or  Hrm)  w ithout  other  security $  '  180  'W  00 

"    other  stoiks,  bonds,  ete.  (demand  loans) ^      3«>' qoo  00 

"  mortgages  and  other  real-estate  security  sanctioned  by  see.  5137,  R.S.  (see  Hchwinle)    * 

'not  -  -      "        -     (see  schedule):  $ 

,     ,    Pi*"*  V.    ■ 1,239,578.62 

Included  m  tlie  al>ov♦^  are — 

Bad  debts,  as  detined  in  section  5204,  Rev.  Stat 

Other  su8i>ended  and  overdue  pai»er .."...!!..  $27,892. 13 

Liabilities  of  directors  (Individual  and  linn)  as  payers $77,300.00 

Loans  exceeding  the  limit  prescribed  hy  section  .->J(M>  of  the  Revised  Statutes,  including  amounts  in  excess 

o/  this  limit  du^/rom  State  and  private  banks  and  bankers. 


Stocks,  securities,  judgments,  claims,  <te. 


J 


Balances  due  from  or  to  approved  reserve  agents. 


From— 

Tradesman's,  N.  Y 

Hanover,  N.  Y 


$80, 388.  U 
70, 883. 53 


Cheeks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks . . . 
Collected  February  15 


Average  reseije  and  tnter«#«.— Average  reserve  for  last  30  days  (in  bank  and  with  reserv  e  acents)  was 
32  per  cent  ot  deposits  and  bank  balances.    The  highest  rate  of  interest  paid  by  the  bank  is  3  percent. 

Overdrafts. 


Sscured :      • 

Standing  12  months  or  over. 

<l  O  tl  (« 


Temporary 


Unsecured : 

Standing  12  months  or  over. 

i>  g  it  41 

*«         3        "  "      * 

»•         1        "  "      ' 

Temporary 


INVESTIGATION   OF   NATIONAL   BANKS. 
Other  real  estate  and  mortgages  owned. 


47 


Describe  property  and  nature 

of  security,  and  state  from  whom  it 

was  obtained. 


Estimated 
actual 
value. 


Amount  of 

prior  lien, 

if  any. 


Amount    j  Bate  when  i  ^ta^' *"^^".V 
of  debt  -A    \         J>**^ 

secured,    i   «^^^»^^'^-  '    acauired. 


Loans  and  discounts,  secured  by  mortgages  or  other  real-estate  secuHty. 
[Sanctioned  by  sec.  5137,  U.  S.  Eevised  Statutes.] 


Name  of  debtor. 


Description 
of  real  estate. 


Estimated 
actual 
value. 


Amount    !  Amonnt  of 
of  debt       prior  lieu, 


secured. 


if  any. 


!' 


Date  when 
acquired. 


State  bow 
acquired. 


[Not  sanctioned  by  sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Description 
of  real  estate. 


Estimated 
actual 
value. 


Amount 
of  debt 
secured. 


Amt.  of 

prior  lien, 

if  any. 


Date  wlu'U 
acquired. 


State  how 
acquir^. 


(Indorsed) :  Banks  will  not  fill  up  indorsement.    No.  of  bank,  2291.    Report  of  the  Keystone  Na- 
tional  Bank  of  Philadelphia,  Penn.,  Feb.  14,  1888. 

Q  You  gave  the  date  when  the  final  approval  of  the  Oomptroller 
wa^  given  which  was  some  time  in  1888  ?-A.  It  was  November  3, 1888 

O.  This  certificate  of  increase  of  stock  seems  not  to  have  been  tiled 
with  the  Department  until  October  30, 1888.— A.  The  cashier's  certifi- 
cate is  dated  October  30,  1888.  The  date  of  filing  does  not  appear  on 
the  instrument.  It  was  evidently  between  June  and  November,  as  the 
Comptroller's  approval  was  dated  November  3. 

Exhibit  J  1. 

[Form  No.  156.] 

» 

Treasury  Department, 
Office  of  Comptroller  of  the  Treasury, 

Washinffion,  Koremher  ?,  1885. 

Sir:  I  am  in  receipt  of  your  letter  of  the  5tb  i^s*-.  relative  to  the  proposed  in- 
crease of  the  capital  stock  of  your  association  m  the  sum  of  $100,000 

Section  5142  o?  the  Revised  Statutes  of  the  United  States  provides  J^^t  «nj  ^- 
ciation  may,  by  its  articles  of  association,  provide  for  an  increase  of  its  capital  tiom 
tune  to  time,  as  may  be  deemed  expedient.  The  maximum  of  ^"^IVhrrofn^troller 
provided  for  in  the  articles  of  association,  must  be  determined  by  the  C  omptroller 
of  the  Currency, 


■5?*!SeB9BB— B^ 


r    C    2, 


■'1 


48 


INVESTIGATION   OF   NATIONAL   BANKS. 


In  the  sixth  article  of  the  articles  of  associatioii^  aiUDiig  other  things,  the  power 
to  provide  for  an  increane  of  capital  stock  and  to  rcjfnlat^*  thr  manner  in  which  such 
increase  shall  he  made,  is  given  to  the  hoard  of  <lircctors.  In  the  filth  article  the 
maximum  amount  to  which  capital  may  he  increased  is  Hxcd  at  $600.0()(). 

Your  hoard  of  directors  has  the  power,  therefore,  to  provide  for  an  increase  of 
capital,  if  tliey  deem  best,  to  any  amount  not  exceeding  the  maximum  limit.  Such 
increavsed  stock  must,  under  the  fifth  article  of  the  artichs  of  association  of  your 
hank,  he  lirst  offered  to  the  present  stockholders,  each  being  entitled  to  a  pro 
rata  share  of  it,  according  to  the  number  of  shares  now  held  by  him.  If  any  stock- 
holder does  not  take  his  pro  rata  share,  it  maj^  be  offered  to  the  other  stockholders. 
The  stock  not  taken  by  any  of  the  present  stockhtdders  may  l>e  offered  to  outside 
parties. 

Section  5140  of  the  Revised  Statutes  further  provides  that  no  in«rease  of  capital 
shall  be  valid  until  the  whole  amount  of  such  increast-  is  paid  in,  an<l  notice  thereof 
has  been  transmitted  to  the  Comptroller,  and  his  apjiroval  obtained.  1  inclose  a 
blank  to  enable  you  to  give  this  notice  in  the  form  required  by  this  «»th<e.  ITpon  its 
receipt,  satisfactorily  execute<l,  the  necessary  approval  will  l>e  sent. 
Very  respectfully, 

II.  W.  Cannox. 

ComptrolUr. 
Jno.  C.  Lucas,  Esq.,  /Vc«/.  ''  Tin  Keystone  Xat'l  Hank," 

PhUadtiphiOf  Pa, 


P^XHIBIT  J  2. 


2291. 


Keystone  Nationai.  Bank  of  Philadelphia, 

Jo  nil  ar  If  10,  ISSS. 

At  a  meeting  of  the  sharebfdders  of  the  Keystcme  Naticmal  liauk  of  Philadelphia, 
held  on  January  10,  1888,  at  which  22  shareholders  were  present,  representing  5,687 
shares  of  the  stock  of  this  association,  it  was — 

Resolved,  That,  under  the  provisions  of  the  act  of  May  1,  1880,  the  capital  stoik 
of  this  association  be  increased  in  the  sum  of  $100,000,  making  the  t«)tal  capital 
$500,000. 

The  above  resolution  was  adopted  by  the  following  vote,  representing  more  than 
two-thirds  of  the  capital  stock  of  the  association : 


Nanie. 


UoHiileut'C. 


McFaddeii,  Chas [  rtiiludelphia. 

LncH8,  Saiiiut'l i »lo 


do 
d«> 
do 
do 


Luca8,  John  C 

Haines,  Granville  B 

NicholH,  D.  P. S  .... 

Ditman,  Ja8.  G 

Van  Bfil,  Henry '  dn 

Stanj;,  Peter do 

Stang,  Geo do 

■      "      ~  do 

do 
do 
do 
do 
do 
do 
do 
do 


No.  of 
shares. 


Reed,  Allen  H 
Whilldin,L.M.. 
Onrap,  (ieo.  R  . . 

Elliot.  A.  G 

Raines,  t'.E 

Byrd,  John 

Green.  Henry  W 
Grey  son.  Joseph 
Heraty.  E.  P  . . . . 

Hiibof,  Jno.  Y I do 

F..ogan.  M. P.. 
Pennell,  W.  H 
Yard,  H.H... 


Total  nunil»er  of  shaies 


5iK) 

2(» 

,  74:{ 

791 

230 
70 

2i;{ 
.'»0 
.'.0 

100 
.'»0 

IliO 
50 
25 
20 
:w 

20 
.'»0 

ino 

1(H) 
100 

2:<.-. 


5.687 


I  hereby  certify  that  the  above  is  a  true  and  correct  copy  of  the  resolution  and 
vote  passed  at  a  meeting  of  the  shareholders  of  this  bank  held  on  Jan.  10,  1888. 
[Seal  of  bank.]  (;.  W.  ^\\\\au,  Cmhier 

Sworn  to  and  subscribed  before  me,  this  the  :i0th  day  of  October,  A.  1>.  1888. 
[Seal  of  notary.]  John  \V.  Harrox,  Notary  Public, 


INVESTIGATION   OF   NATIONAL   BANKS. 


49 


Exhibit  J  3. 

} 

2291. 

Keystone  National  Bank  of  Philadelphia, 

October  30,  1888. 

To  the  Comptroller  of  the  Currency, 

Washington^  D.  C: 

It  is  hereby  certified  that  the  capital  stock  of  "The  Keystone  National  Bank  of 
Philadelphia '' has  been  increased,  pursuant  to  the  provisions  of  the  act  of  May  1, 
1886,  ill  the  sum  of  100,(XK)  (me  hundred  thousand  dollars,  all  of  which  has  been 
paid  in,  and  that  the  paid  up  capital  stock  of  »aid  bank  now  amounts  to  500,000 
five  hundred  thousand  dollars. 

[Seal  of  bank.]  G-  W.  Marsh,  Cashier. 

State  of  Pennsylvania,  County  of  Philadelphia,  ««.; 

I  Gideon  W.  Marsh,  cashier  of  ''The  Keystone  National  Bank  of  Philadelphia," 
in  the  State  of  Pennsylvania,  do  solemnly  swear  that  the  foregoing  certificate  by  me 

subscribed  is  true.  ^   ,,r  ,r  a.    r 

G.  W.  Marsh,  Cash, 

Subscribed  and  sworn  to  before  me,  this  30th  day  of  October,  1888. 

[Official  seal  of  officer.]  John  W.  Barron,  Notary  Public. 


f' 


Exhibit  K. 


2291. 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Wa^hingUm,  D.  C,  November  3rd,  1888. 

Whereas  satisfactory  notice  has  been  transmitted  to  the  Comptroller  of  the  Cur- 
rency that  the  capital  stock  of  **  The  Keyst<me  National  Bank  of  Philadelphia," 
Pennsylvania,  has  been  increased  in  the  sum  of  one  hundred  thousand  dollars 
($100,000),  in  accordance  with  the  provisions  of  act  of  Congress  approved  May  1, 
1886,  and  that  the  whole  amount  of  such  increase  has  been  paid  in,  and  that  the 
paid-up  capital  8t<»ck  of  said  bank  now  amounts  tt)  the  sum  of  five  hundred  thousand 
dollars  ($500,0(M)) : 

Now,  it  is  hereby  certified.  That  the  capital  stock  of  *'  The  Keystone  National 
Bank  of  Philadelphia,"  Pa.,  aforesaid  has  been  increased  as  aforesaid, in  the  sum  of 
one  hundred  thousand  dollars  ($100,(XX)) ;  that  said  increase  of  capital  has  been  paid 
into  said  bank  as  a  part  of  the  capital  stock  thereof;  and  that  the  said  increase  of 
capital  is  approved  ])y  the  Comptndler  of  the  Currency. 

In  witness  whereof  1  hereunto  affix  my  official  signature  and  seal  of  office. 

[Seal  of  comptroller.]  W.  L.  Trenholm,  ComplroUer. 

Q.  Is  there  any  correspondence  between  the  officers  of  the  bank  and 
the  Comptroller  relating  to  this  increase  which  exi)lains  the  length  of 
time  which  expired  or  throws  any  light  upon  the  interval  of  nearly  ten 
months! — A.  1  find  a  letter  here  addressed  to  the  president,  or  to  the 
directors  of  the  Keystone  National  Bank  of  Philadelphia,  dated  October 
(»,  1888,  in  which  allusion  is  made  to  the  increase  of  capital  in  these 
words : 

It  appears  from  the  report  that  your  capital  stock  has  been  increased  from  $400,000 
to  $450,000.  This  increas<^  appears  to  have  been  made  in  violation  of  Section  5142  of 
the  Revised  Statutes,  to  which  attention  is  called,  and  which  provides  that  no  in- 
crease of  capital  stock  shall  be  allowed  until  the  whole  amount  of  the  increase  stock 
IS  paid  in  and  notice  been  transmitted  to  the  Comptroller  of  the  Currency,  and 
specifying  the  amount,  and  until  his  approval  has  been  duly  given  that  the  amount 
was  pai»l  in  as  part  of  such  capital  stock.  You  are  requested  to  explain  why  this 
was  not  made  in  accordance  with  the  law. 

Q.  Is  there  a  reply  to  that  letter? — A.  There  was  a  letter  written 
prior  to  my  becoming  Comptroller,  which  I  will  read.  Mr.  Granville 
B.  Haines,  president,  in  a  letter  which  is  not  dated,  says:  *'Our  capital 

3702 4 


?' 


'    ^4i 


'li 


H 


50 


INVESTIGATION   OF    NATIONAL    BANKS. 


stock  was  increased  to  $500,000  after  the  receipt  of  your  letter  and  the 
necessary  t^^uthority  by  you  forwarding  your  official' sanction  has  been 
obtained."  Evidently  the  letter  was  written  subsequently  to  the  3d  of 
November. 

Q.  There  is  nothing  further  in  tlie  correspondence  of  the  Bureau,  so 
far  as  you  have  discovered,  relating  to  that  increase,  or  the  circumstances 
surrounding  it  ?— A.  I  directed  the  chief  of  the  reports  division  to  give 
me  every  letter  during  the  period  those  increases  were  going  on,  and 
there  does  not  appear  to  be  any  except  those  two  alluding  to  that  matter.. 

Q.  Go  back  to  the  reports  again.  On  the  report  of  condition  of  the 
14th  of  February,  1888,  I  will  ask  you  to  read  the  item  which  shows  the 
payment  of  the  capital.— A.  On  February  14, 1888,  they  report  as  paid 
in  on  account  of  the  new  capital  $23,940. 

Q.  Take  the  next  report  of  condition  and  see  what  that  item  is  in  the 
report  of  February,  1888.  What  is  the  date  of  the  next  reportf—A. 
The  date  of  the  next  report  is  April  30, 1888,  and  no  item  representing 
payment  upon  the  new  capital  is  reported.  The  next  report  is  June  30, 
1888.  The  capital  is  reported  at  $400,000.  :No  amount  is  reported  as 
having  been  paid  in  upon  the  new  capital. 

Q.  What  is  the  next?— A.  The  same  thing  is  true  of  the  next  report, 
which  is  dated  October  4,  1888. 

Q.  What  is  the  next  report?— A.  The  next  report  was  for  December 
12,  1888,  wherein  the  capital  stock  is  stated  at  $500,000. 

By  Mr.  Dickerson  : 

Q.  Is  that  1888,  or  1887?— A.  It  is  1888.  The  certiflcate  of  increase 
intervened  between  the  two  reports,  October  and  December, 


INVESTIGATION   OF   NATIONAL   BANKS. 


51 


Exhibit  K2. 

Ko.  of  bank,  2291. 
[Use  the  blank  lines,  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  "The  Keystone  National  Bank,''  at  Philadelphiay  in  the  State  of 

Penna.,  at  the  close  of  business  on  the  SO  day  of  April,  1888. 
Db.  


Resources. 


1.  Loans  and  discounts  (see  schedule) . 

2.  Overdrafts  (see  schedule) 

3.  TJ.  S.  bonds  to  secure  circulation 

(par  value) . .  jier  cents  .  per  cents. 

4.  U.  S.  bonds  to  secure  deposits  (par 

value) . .  per  cents 

5.  U.  S.  Iwnds  on  hand  (par  value) . . 

per  cents 

6.  Stocks,      securities,     Judgments, 

claims,  etc.  (see  schedule) 


Dollars. 


1,483,756.95 
1.264.81 

50, 000. 00 


Due  from  approved  reserve  agents 
edule)  — 


10 
11 


(see  schedule) 

8.  Due  from  other  national  banks — 

9.  Due  from  State  and  private  banks 

and  bankers 

Banking  house $ 

Furniture  and  fixtures. . .  $10, 000 


12.  Other  real  estate  and  mortgages 

owned  (see  schedule) -  -  - . 

13.  Current  expenses  and  taxes  paid.. 

14.  Premium  on  bonds  for  circulation, 

$           ;  premium  on  other  U.  S. 
bonds,  $  


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  for  clearing  house 

17.  Bills  of  other  banks 

18.  ^Fractional  paper  currency,  nick- 

els, and  cents •>• 

19.  Specie,  vi/> : 

Gold  coin... $40,000 

Gk)ld  Treasury  certifi- 
cates   $ 

Gold  clearing-hojise 
certificates $50, 000 

Silver  dollars,  8,000; 
frac'l,  3,895 $11,895 

Silver  treasury  certifi- 
cates   $ 

Fractional  silver  coin .  $ 


107, 803. 61 
64, 378. 60 

23,640.95 


10, 000. 00 


3, 999. 32 


7, 073.  54 

74,811.28 

5, 560. 00 

376.04 


20.  Legal-tender  notes 

21.  United  States  certificates  of  de- 

posit for  legal-tender  notes  (sec. 
5193,  Rev.  Stat.) 

22.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23.  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redemption  fund) . 


Total 


101.895.00 
98, 000. 00 


Liabilities. 


Dollars. 


1.  Capital  stock  paid  in . 


2. 

3. 

4. 


Surplus  fund 

Undivided  profits. 


Circulating  notes  re- 
ceived from  Comp- 
troller  $ 

Less  am't  on  hand 
and  in  Treasury 
for  redemption  or 
in  transit $ 


State  bank  circulation  outstand- 
ing  


6.  Dividends  unpaid 

7.  Individual  deposits 

subject  to  check.  .$1, 215, 345. 23 

8.  Demand  certificates 

of  deposit $ 

9.  Time  certificates  of 

deposit $ 

10.  Certified  checks. -..$    202,258.86 

11.  Cashiers     checks 

outstand  in  g :    tel- 
ler's  due  bills $ 


400, 000. 00 

80,000.00 
19,  787, 10 


45,  000. 00 


812.50 


2, 250. 00 


12. 

13. 


14. 

15. 
16. 


17. 
18. 


United  States  deposits 

Deposits  of  U.  S.  disbursing  ofli- 
cers 


Due  to  approved  reserve  agents 

(see  s(;hedule) -  - 

Due  to  other'national  banks 

Due  to  State  and  private  banks 
and  bankers 


Notes  and  bills  i-ediscounted . 
Bills  payable 


1, 417, 604. 09 


63, 218. 49 
8,387.92 


2,034  810.10 


Total 12,034,810.10 


1,  G.  W.  Marsh,  of  "The  Keystone  National  Bank,  Philadelphia,  Penna.,"  do  solemnly  swear  that 
the  above  statement  is  true,  t*»  the  best  of  my  knowledge  and  belief,  and  that  the  schedules  on  back  of 
the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  state  of  the  several 
matters  therein  contained. 

Correct.    Attest : 

G.  W.  Marsh, 

Cashier. 
D.  P.  S.  Nichols, 
Louis  Dreka, 
Samuel  Lucas, 

Directors. 
State  of  Pennsylvania,  County  of  Philadelphia: 

Sworn  to  and  subscribed  before  me  this  seventh  day  of  May,  1888. 

[seal]  John  W.  Barron, 

NotAiry  Ptbblic. 

Must  be  acknowledged  before  an  officer  having  an  oflicial  se^l.    (See  act  approved  Feb.  26,  1881.) 


^1 

ij 

''A 

I 
Hi 

m 


I 

i 


1.1 


52  INVESTIGATION   OF   NATIONAL    BANKS. 

[Fin  all  schedules,  writing  in  the  word  "None"  wherever  no  amount  is  to  be  entered.] 

Schedules. 

Loang  and  ditconnU. 

On  demand,  on  V.  S.  bonds $ 

"         '•  '■  slocks,  bonds,  and  other  personal  securities $ 

"  paper  with  two  or  nion-  iudividiiul  or  Hrm  names $l,  177,  756.95 

"  time,  single  name  paper  ((mo  i>erson  or  firm)  without  other  security $    20.5,000.00 

*'  otluT  stocks,  bonds,  etc.  (d«'mand  loan.s) $     101, 000. 00 

•'  time,  on  mortgages  and  other  real-estate  security  sanctioned  by  sec.  5137,  R.  S.  (see 

schedule) T $ 

On  time,  on  mortgages  an«l  «»thcr  rt'al  estat«'  security  not  sanctioned  by  sec.  5137,  R.  S. 
(see  schedule) '. '. $ 

Total 1,483.756.95 

Included  in  the  alM)vc  are — 

Bad  debts,  as  derined  in  seel  ion  .'»2!>4,  Ke\ .  Stat $ 

Other  suspended  and  overdue  jiajwr .$12, 692. 43 

Liabilities  of  directors  (individual  and  tirni)  as  payers .$56, 821. 12 

Loans  exceeding  the  limit  prescribed  by  necfion  52i>0  0/  the  Revised  Statutes,  including  amounts  in  excess 

0/  this  limit  due  from  State  and  private,  banks  and  bankers. 


Stocks,  securities,  jvdgnnents,  claims,  etc. 


INVESTIGATION   OF   NATIONAL   BANKS. 


Other  real  estate  and  mortgages  owned. 


53 


Describe  property  and  nature  of  se-  i  Estimated    Amount  of  Amount  of   j^^^^  ^.,^,,„     State  fully 
^  -'       -^    •  '         -  -   -^         -iriorlien,  .        debt       |   acquired. 

il  any.     !    secured.    I       ^ 


curity,  and  state  from  whom  it  was 


obtained 


actual 
value. 


how 
acquired. 


Loanx  and  discounts,  secured  by  mortgages  or  other  real  e4ttate  security. 
[Sanctioned  by  sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Descri}>tionof  real 
estate. 


i  Estimated 
actual 
value. 


Amount  of 

debt 

secured. 


Amt.of      Djitewben 
prior  hen,      acquired, 
if  any.  * 


State  how 
ai^quired. 


[Not  sanctioned  by  se<;.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


...         ..       ,    Estimated 
Description  ui  real        actual 
estate.  value. 


Amount  of 

debt 

secured. 


Amt.  of 


iDate  when 


prior  lien,  |  acquired, 
if  any.  ^ 


State  how 
acquireil. 


Balances  due  from  or  to  approved  reserve  agents. 


From— 


Hanover  Nat'l 
Tradesman's . 


(Indorsed :)  liauks  will  not  till  up  indorsement.    No.  of  bank,  2291.    Report  of  The  Keystone  Nat. 
Bank  of  Philadelphia,  Pa.    April  JO,  1888. 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  &c.,  in 

this  city 

Checks  and  drafts  on  other  banks. . . 


V 


Average  reserve  and  in trre«f.Xvvr}{<it^  reserve  for  la.st  30  days  (in  bank  and  with  reserve  agents) 
was  'JO',*  per  cent  of  deposits  and  bank  Italances. 
The  highest  rat<^  of  interest  paid  by  the  bank  is  3  jx^r  <;ent. 

Overdrafts. 


Secured : 

Stiinding  12  months  or  over 

li  Q  it  tl 

It  O  (>  tl 

It  -t  tt  it 

Temporary 


Unsecured : 

Standing  12  months  or  over 

ki  a  it  II 

i<  q  li  II 

ii  J  il  tt 

Temporary 


c 


li 


i\ 


J. 


i 


54 


INVESTIGATION   OF   NATIONAL   BANKS. 


Exhibit  L. 

Ko.  of  bank,  2201. 
[Vso  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  "  The  Keystone  National  Bank. "  at  Philad'a,  in  the  State  of 

Fenn'a,  at  the  close  of  business  on  the  SO  day  of  June,  1S88. 
Db.  Cr. 


Besources. 


1 .  Loans  and  diHCOuntH  (see  8<;li<^dule) 

2.  overdrafts  (see  schedule) 

3.  U.  S.  bonds  to  secure  eirculation 

(par  value).. per  cents,  4^  per 
cents 

4.  U.  S.  bonds  to  secure  deposits  ^jiar 

value) .  -pei  cents 

5.  U.  S.  bonds  on  hand  (par  value). . 

per  cents 

6.  Stocks,     securities,     judgments, 

claims,  6lc.  (see  schedule) 


Dollars. 


8. 
9. 

30. 
11. 

12. 

13, 
14. 


15 


Due  from  approved  reserve  agents 

(see  schedule) 

Due  from  other  national  banks — 
Du(3  from  State  and  private  banks 

and  bankers 

Hanking  bouse $ 

Furniture  and  tixtures. . .  $10, 000 


Other  real  estate  and  mortgages 
owned  (see  schedule) 

Ourrent  expenses  and  taxes  paid. . 

Premium  on  bonds  lor  circulation, 
$  ;  premium  on  other  IJ.  S. 
bonds,  $  


Checks  and  other  cash  items  (see 
schedule) 

16.  Exchanges  for  clearing  house 

17.  Hills  of  other  banks , 

18.  Fractional  paper  currency,  nick- 

els, and  cents 

19.  Specie,  viz: 

(loldcoin %  14,401 

Gold  Treasury  cer- 
tificates   $ 

Gold  clearing  house 
certificates $140, 000 

Silver  dollars $    2,  600 

Silver  Treasury  cer- 
tificates  *. $ 

Fractional  silvercoin  $    2,431 


1,508,001.82 
1, 605,  53 


50,000.00 


82, 820, 67 
55, 860, 39 

23, 779. 70 

10, 000.  00 

4, 850. 49 

3, 999. 32 


4, 050. 57 

361,  95.1. 93 

2, 000, 00 

776.54 


Liabilities. 


20. 
21. 


22 


Legal-tender  notes 

United  States  certificates  of  de- 
posit for  legal-tender  notes  (sec. 
5193,  Kev.  Stat.) 

Redenijition  fund  with  U.  S. 
Treasurer  (not  more  tlian  5  per 

cent  on  circulation) 

23.  Due  from  U.  S.  Treasurer  (other 
than  5  per  cent  redemption 
fund) 


Total 


159,  432. 00 
70, 000, 00 


30, 000. 00 
2,250.00 


6. 

7. 

8. 

9. 

10. 
11. 


12. 

13. 


14. 

15. 
10. 


17. 

18. 


2,371,380.96 


Capital  stock  paid  in 

Surplus  fund 

Undivided  profits 

Circulating  notes  re- 
ceived  from  comp- 
troller  $ 

Less  am'ton  hand  and 
in  Treasury  for  re- 
demption or  in  tran- 
sit   $ 

State  bank  circulation  outstand- 
ing  

Dividends  unpaid 

Individual  deposits 

subject  to  check . .  $1,582,892.24 
Demand  certificates 

of  deiHtsit $ 

Time  i-ertificates  of 

de^KJsit $ 

Certified  checks $ 

Cashier's   checks 

outstanding $]  174,577.26 

United  States  deposits 

Dei)osits  of  U.  S.  disbursing  offi- 
cers   , 

Due  to  approved  reserve  agents 
(see  sche<lule 

Due  to  other  national  banks 

Due  to  State  and  private  banks 
and  bankers 

Notes  and  bills  re-discounted 

Bills  payable 


Dollars. 


400,000.00 

80,000.00 
20, 285. 58 


45, 000. 00 


670.70 


1, 757, 469.  50 


61,269.86 
6,685.32 


! 


Total 12,371,380.96 


I,  G.  W.  Marsh,  cash,  of  "The  Keystone  National  Bank,  of  Philadelphia,  Penn'a,"  do  solemnly 
swear  that  the  above  statement  is  true,  to  the  best  of  my  knowledge  and  belief,  and  that  the  schedules 
on  back  of  the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  state  of 
the  several  matters  therein  contained. 
Correct.    Attest : 

G.  "W.  Marsh,  Cashier. 
Granville  B.  Haines, 
D.  P.  S.  Nichols, 
Samuel  Lucas, 

IHrectQr$. 
State  op  Pennsylvania,  County  of  Philadelphia: 


Sworn  to  and  subsi^ribed  before  me  this  tenth  day  of  July,  1888. 


John  W.  Barron,  Notary  PubUe. 


Must  be  acknowledged  before  an  officer  having  an  official  seal.    See  U4't  appro\  ed  Feb.  26, 1881. 


INVESTIGATION   OF   NATIONAL   BANKS. 

[Fill  all  schedules,  writing  in  the  word  "none"  wherever  no  amount  is  to  be  entered.] 


55 


SOHEDULES. 
Loam  and  discounts. 


$ 


On  demand,  on  U.S.  bonds .---- - ----• 

.4         i»  "   stocks,  bonds,  and  other  personal  securities 

"  paper  with  two  or  more  individual  or  firm  names.. -. 

"  single-name  paper  (one  person  or  firm)  without  other  security ifio  aoa  no 

•'  other  stocks,  bonds,  etc.  (demand  loans) .---,-:- --•««■  -^H; l'  a  "i"J;  "  1         ' 

"  mortffa.-e8  aiid  other  real-estate  security  sanctioned  by  sec.  5137  R.  S.  (see  schedule   .j$ 
^^  ?""  u  "  "    NOT       "  "         "        "    (see  schedule)  .  $ 


$1, 163, 001. 82 
$    182,000.00 


Total. 


Included  in  the  above  are—  ,^^,  „      „a  ^ 

Bad  debts,  a  s  defined  in  section  5204  Rev.  Stat 

Other  suspended  and  overdue  paper 

Liabilities  of  directors  (individual  and  firm)  as  payers. 


-$ 


1,  508, 001. 82 


10, 783. 66 
62,48L92 


Loans  exceeding  the  limit  prescribed  by  sectum  5300  of  the  Revised  Statutes,  including  amounts  in  excess 

of  this  limit  due  from  State  and  private  banks  and  bankers. 


Stocks,  securities,  judgments,  claims,  etc. 


i 


Balances  due  from  or  to  approved  reserve  agents. 
JBVom—  To— 


Hanover  Nat 
Tradesmans  . 


21,049.18 
61,171.49 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  citv ■ 

Checks  aiid  drafts  on  other  banks.. . 


Average  reserve  and  interest.— Average  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  3  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  261V0 
per  cent. 

Overdrafts. 


Secured : 

Un.secured : 

Standing  12  months  or  over 

Standing  12  months  or 

"          6 

over 

it                    Q                4i                               **«.••-. 

u           3         <.< 

ii 

It                     1                 4i                               i» 

531.61 

1 

t( 

1,173.92 

Temporary 

56 


INVESTIGATION   OF   NATIONAL   BANKS. 
other  real  eutate  and  mortgagee  owned. 


Describe  luoperty  and  nature  of  se- 
cuiity,  aud  8tat«  from  whom  it  was 
obtained. 


Estima-      Amannt  of  i  Amount  of 
ted  actual     prior  lien,  I       debt 
value.  if  any.  secured 


Date  when     State  fully 
how  ac- 


acquired. 


quired. 


Loans  and  dUcountu,  aeenred  by  mortgages  or  other  real  estate  security . 
[Sanctioned  by  sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Description  of  real    ,  E*<tima-      Anioiint  of  j     Ami.  of 


estate. 


ted  actual 
value. 


debt 
secured. 


prior  lieu, 
if  any. 


Date  when 
acquired. 


St«t«i  how 
acquired. 


[Not  sanctioniMl  by  sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Description  of  real 
estate. 


Estiraa-      Amount  of!    Amt.  of      ,.  .       .       i  ^^  x    ». 
ted  actual  debt       j  prior  lien,  i   „i!l'^,]*^"t°  i   '^ta^^.j^ow^ 

value.  secured.         if  any.         «'•"""*"' 


acquired. 


acquired. 


(Indoraed:)  Banks  will  not  till  up  indorsement.    No.  of  bank,  2291.    Report  of  the  Keyatone  Nat. 
Bank,  ot  Philadelphia,  Pa.,  June  30,  1888.  --^jrowuc  x^«,i,. 


*  INVESTIGATION   OP  NATIONAL   BANKS.  57 

Exhibit  M. 

No.  of  bank,  2291. 

[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  The  Keystone  Xatl.  Bank,  at  Phila.,  in  the  State  of  Penn.,  at 

the  close  of  hnainess  on  the  4th  day  of  Octo.,  1SS8. 
De.  ^"• 


Resources. 


1.  Loans  and  discounts  (see  schedule) 

2.  Overdrafts  (see  sdiedule) 

3.  U.  S.  bonds  to  secure  circulation 

(par  value).. per  cents  4^   per 
crents 

4.  U.  S.  iMJntls  to  secure  deposits  (par 

value) . .  per  cents 

5.  U.  S.  bonds  on  band  (par  value) 

. .per  cents 

(}.  StiK'ks,     securities,     Judgments, 
claims,  &c.,  (see  schedule) 

7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  Due  from  other  national  banks  .. . 

9.  Due  from  State  and  private  Ijauks 

and  bankers 

10.  Bankinj^- liouse $ 

11.  Furniture  and  tixtures  $ 


Dollars. 


1,319,328.88 
466.95 


50, 000. 00 


Liabilities. 


1.  Capital  stock  paid  in. 


Surjilus  fund 

Undivided  profits . 


Dollars. 


400,  000. 00 


Circulating  notes  receiveil 
from  comptroller $45,000 

Less  am't  on  hand  and  in 
Treasury  for  redemption 
or  in  transit $ 


80, 000.  00 
37.  388. 99. 


12.  Other  real  estate  and  mortgages 

owned  (see  schedule) 

13.  Current  expenses  and  taxes  paid. . 

14.  Premium  on  bonds  forcircidation, 

$        .    Premiums  on  other  U.  S. 
bonds,  $         


15.  Checks  and  other  cash  items  (see 

sdiedule) 

16.  Exchanges  for  (ilearing  house 

17.  Bills  of  other  banks 

18.  Fractional  paper  currem'y,  nickels, 

and  cents ' 

19.  Spei'ie,  viz: 

Gold  coin $23, 370 

Gold  Treasury  certifi- 
cates      $40,000 

Gold  clearing-house  cer- 
tificates   

Silver  dollars $1, 800 

Silver  Treasury  certifi- 
cates       $ 

Fractional  siver  coin $2,  080 


20.  Lej£al-t<*nder  notes 

21.  United  States  certificates  of  de- 

posit foi-  legal-tender  notes  (Sec. 
5193,  Rev.  Stat.) 

22.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23.  Dne  from  U.  S.  Treasurer  (other 

than5percent redemption  fund) 


Total 


148,  539. 31 
92,  649. 29 

15,622.14 


10,000.00 


15, 167. 88 


3, 999. 32 


7, 484. 28 

156,217.24  i 

2, 200. 00 

737.  09 


67,250 
71.240 


2,250 


5. 
0. 

7. 

8. 

9. 

10. 
11. 


12. 
13. 


14. 

15. 
16. 


17. 

18. 


State  bank  circulation  outstanding 
Dividends  unpaid 


Individual  deposits 

subject  to  check  -  $1,174,086.09 
Deniau«l  lertiticates 

of  (h'posit $ 

Time  certificates  of 

deposit $ 

Certified  checks 

Cashier's    «■  hecks 

outstanding $    43,737.56 


United  States  deposits 

Deposits  of  U.  S.  disbursing  offi- 
cers   " 


Due  to  approve<l  reserve  agents 
(see  s(;hedule) 

Due  to  other  national  banks 

Due,  to  State  and  i>rivat«  banks 
and  bankers 


45, 000. 00 
SoO.OO 


1,217,823.65 


Notes  an'd  bills  rediscounted 

liills  payable 


1,963,158.38 


Total 


50, 145. 74 
7, 500. 00 

125,000.00 


1,963,158.38 


I,  G.  W.  Marsh,  cashier  of  The  Keystone  Natl.  Bank,  Philadelphia,  Penn.,  do  solemnly  swear  that 
the  above  statement  is  true,  to  the  best  of  my  knowledge  and  belief,  and  that  the  schedules  on  back  of 
the  report  have  been  carefully  filled  out  and  fully  ami  correctly  represent  the  true  state  of  the  several 
matters  therein  contained. 


Correct.    Attest: 


State  ok  Pennsylvania,  County  of  Philadelphia : 

Sworn  to  and  subscribed  before  me  this  11th  day  of  October,  1888. 
[Notary  seal.] 


G.  W.  Marsh,  Cashier. 

D.  P.  S.  Nichols, 
Louis  Dreka, 
Samuel  Lucas, 

IHreetors. 


John  W.  Barron, 

Notary  Public. 


Muat  be  acknowledged  before  an  officer  using  an  official  seal.    See  act  approved  Feb.  26,  1881. 


i 


■  i 


I  ^;' 


t 


I 


58  INVESTIGATION   OF   NATIONAL   BANKS. 

[Fill  all  schedules,  writing  in  the  word  "  none"  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 

Loans  and  discounts 

On  demand,  onU.  S,  bonds * 

"        ''        /'  stocks,  bonds,  and  other  personal  securities .."".".....'"'.'"""'**  $ 

On  paper  with  two  or  more  individual  or  tirm  names .''.'*'.".' " '  $1  025  328  88 

"  single-name  paper  (one  person  or  firm)  without  ol her  security  ..!...!...!.'.!!! $  '  WJ  ooo  00 

"  other  stocks,  bonds,  etc.  (demand  oans) *    ^25  000  00 

"       '*    mortgages  or  other  real  estate  security  (see  8ch«'dule) !...!'....*'.."*."...$ 

'^"**^ $1,819,328.88 


Included  in  the  above  are — 

Bad  debts,  as  delined  in  section  5204.  Kev.  Stat 

Other  suspended  and  overdue  paper 

Liabilities  of  directors  (individual  and  Arm)  us  payers.. 


$4  44;{  ^     Knter  the  amount  in  each  of 
$27  ''04  '  *^'®-'**'  three  items,  or  write  in 
$85  500  I  *^"'  ^•^^d  "none"  if  there  is  no 
■  *'   '        [  amount  to  enter. 


Loans  exceeding  the  limit  prescribed  by  Section  6^00  of  the  Jtevised  Statutes,  including  amount*  which 
exceed  this  limit  due  from  State  and  private  banks  and  bankers. 


"Nsaae  of  Iwrrower. 


Enter  fuU 

amount  of 

loan. 


Kame  of  borrower. 


Enter  full 

amount  of 

loan. 


Stocks,  securities,  judgments,  claims,  <£c. 


Enter  number 

shares  of  stock  or 

face  value  of 

bonds. 


Name  of  corporation 

issuing  stock, 

bond,  etc. 


Amount  at 

whicli  carried  on 

books. 


State  whether  taken 
Estimated  actual    for  "d«!bts  previously 

contra(;ted,"  or 
otherwise. 


market  value. 


Balances  due  from  or  to  approved  reserve  agents. 
From—  T<>_ 


Enter  name  and  location  of  bank. 

Amount. 

Enter  name  and  locatiod  of  bank. 

Amount. 

Hanover ». 

64, 522. 35 
84, 016. 96 

Tradesmens 

Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  &c.,  in 

this  city 

Checks  aiid  drafts  on  other  banks  . . . 


Average  reserve  and  interest.— Avernixt^  reserve  fi)r  Isist  30  days  (in  banks  and  with 
was  24/otf  per  cent  of  deposits  and  bank,  balance.s.    The  liigheat  rate  of  interest  uaid 
jMjr  cent. 


resei-ve  agents) 
i>aid  by  the  bank  is  8 


INVESTIGATION   OF   NATIONAL   BANKS* 


Overdrafts. 


59 


Secured : 

Standing  12  months  or  over. 

•  4  6         "  "  ' 

t«  3       "  •'        . 

»«  1       "  "        . 

Temporary 


Unsecured : 

Standing  12  months  or  over. 
"6       "  " 

ii          1       "            "        . 
Temi>orary 


Other  real  estate  and  mortgages  owned. 


Describe  property. 

state  form  of  conveyance,  and 

from  whom  obtained. 


Amount 

at  which 

earriedon 

books. 


Amtmntof 

prior  lien  on 

])roi»erty, 

if  any . 


Estimated 
aetnal value 
of  jiropert.N 


Date  when 
acquired. 


State 
whether 
taken  for 
"debts  pre- 
viously con- 
tract<Hl,"  or 
otherwise. 


Loans  and  discounts,  secured  by  mortgages  or  other  real-estate  secuHty. 


Describe  property, 

8tat«  form  of  conveyance,  and 

from  whom  obtained. 


Amount 

at  which 

carried  on 

books. 


Amount  of 

prior  lien  on 

property, 

if  any. 


Estimated 
actual  value 
of  property 


Date  when 
acquired. 


Stat-e 
whether 
taken  for 
"debts  pre- 
viously con- 
tracted,'*^ or 
otherwise. 


(Indorsed:)  Banks  will  not  fill  up   indorsement.    No.  of  bank,  2291.    Report  of  the  Keystone 
National  bank  of  Philadelphia,  Penn.,  October  4,  1888, 

By  the  Chairman  : 
Q.  Will  you  take  the  report  of  October  4,  1888,  and  the  report  of  De- 
cember 12,  1888,  and  state  where,  if  anywhere,  in  the  resources  of  the 
bank  you  discovered  the  extra  $100,000?— A.  As  accounting  for  the  in- 
creased capital  dining  these  two  periods,  without  going  into  exact  figures, 
I  find  it  is  accounted  for  upon  the  increase  of  resources  in  various  items 
to  the  extent  of  $87,000,  and  the  decrease  of  the  liabilities  in  various 
items  $31,000,  which  would  represent  (those  two  added  together)  about 
$118,000. 

By  Mr.  Sperry: 
Q.  The  increase  was  $100,000?— A.  Yes,  sir;  of  course  that  is  not  a 
careful  analysis,  but  it  is  in  round  numbers,  and  taken  from  various 

items. 

Q.  What  liabilities  were  diminished?— A.  The  undivided  profits 
were  reduced  $22,000;  deposits  were  reduced  $02,000;  due  to  banks 
and  bankers  was  reduced  $10,000,  and  bills  payable  $50,000,  making 

$144,000. 

Q.  Did  that  appear  prior  to  that  time?— A.  Yes,  sir. 

Q.  You  make  -&.  decrease  in  the  surplus  fund?— A.  There  is  an  in- 
crease  in  the  surplus  fund  of  $5,000, 


fi. 


I: 


ii 


m 


60 


INVESTIGATION  OP  NATIONAL  BANKS. 


u 


!■   I 


'      -ll 


Q.  Then  that  would  indicate  that  $5,0()0  of  the  capital  paid  in  waa 
carried  to  the  surplus  ftmdf— A.  Not  from  the  capital,  but  probably 
from  the  undivided  juofits. 

Q.  The  tliino-  1  aiu  looking  for  is  the  $100,000.— A.  That  is  explained 
by  the  net  diniunition  of  the  liabilities  to  the  extent  of  $31,000,  and  the 
increase  in  the  assets  to  the  extent  of  $87,000. 

Q.  Anioug  the  diminution  of  liabilities  in  this  renuirk  yon  put  the 
diminution  of  the  surplus?— A.  The  increase  of  the  surplus  is  $56,000. 

Mr.  Spekry.  Is  there  au  item  of  bills  payable f 

The  Chairman.  There  is  an  item  of  bills  payable  to  these  other  banks. 

The  Witness.  Whene\  er  a  bank  borrows  money  it  sh<mld  issue  its 
note  or  obligation,  and  that  we  require  them  to  classify  as  bills  payable, 
as  distinguished  from  voluntary  deposits  by  customers  of  the  bank. 
Frequently  banks,  at  certani  seasons  of  the  year,  require  to  extend 
their  loans  and  discounts,  and  they  frequently  borrow  money  of  their 
correspondents,  wheie  rates  of  interest  are  1ow(M',  and  they  give  their 
obligations.  The  money  they  receive  they  proceed  t^  lend  to  their  cus- 
tomers.    When  in  funds  they  leturn  it. 

Q.  1  supposed  that  came  under  the  head  of  '^  Due  to  other  banks".— 
A.  Banks  kee])  iiccounts  upon  which  they  draw.  That  Wiuild  be  the 
amount  due  to  banks;  but  if  the  Keystone  Bank  went  to  New  York 
and  borrowed  $50,000  from  its  correspondents,  it  would  give  its  obliga- 
tion ilue  at  a,  tixed  time,  with  interest,  and  tiiat  would  l»e- denominated 
"bills  payable."  On  the  one  hand,  the  amount  which  is  deposited  by 
the  bank  or  the  customer  in  the  Keystone  is  htdd  as  deposits:  that 
whu-.h  is  borrowed  in  New  York  is  among  the  bills  payable,  and  no 
amount  would  be  obliged  to  be  held  as  reserve  against  it.  Besides,  the 
law  says  that  a  bank  shall  not  become  liable  for  money  borrowed  in 
excess  of  the  capital. 

By  Mr.  Cate  : 

Q.  Would  not  tellers'  due  bills  be  bills  payable  ?— A.  Frequently  it  is 
reported  among  the  cashier's  checks.  I  notice  that  in  the  Keystone 
Bank  they  are  usually  reported  among  the  cashiei-'s  checks  outstanding. 
By  the  Chairman  : 

Q.  In  order  that  it  may  be  put  upon  the  record,  on  Oct.  14, 1888,  the 
Keystone  National  Bank  is  shown  by  this  report  to  have  owed  what 
amount  to  other  banks?— A.  The  total  amount  due  to  other  banks  on 
the  4th  of  October,  1888,  was  $57,045.74. 

Q.  In  addition  to  that,  the  Keystone  Xatipnal  Bank  is  shown  to  be 
in  debt  upon  bills  payable  to  what  amount  f— A.  $125,000. 

Q.  Take  the  report  of  December  and  make  a  similar  statement  as  to 
that.— A.  On  December  12, 1888,  they  report  as  due  to  banks  $48,325.72. 
The  amount  due  on  bills  payable  is  $75,000  at  the  same  date. 


<   t 


INVESTIGATION   OF   NATIONAL   BANKS. 


61 


Exhibit  N. 


No.  of  bank,  3291. 
[TTse  the  blank  lines  if  necesftary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  Of  the  condition  Of  ^*  The  Keystone  National  Bank  "  at  Phijada     in  the  State  of 
tiepoi    vj       ^^^^^^^  ^^  .^^  ^^^^g  ^^  hH8incH8  on  the  U  day  of  December,  1S8S. 


Dr. 


Cr. 


Resources. 


DoUars. 


1.  Loans  and  discounts  (see  schedule)  1,34.  ,730.27 

2.  Ovewlrafts .-  ------        A«7b.l8 

3.  U.  S.  bonds  to  secure  circulation 

(par  value).,  per  cents,  .ppcents.     50,000.UU 

4.  U.  S.  bonds  to  secure  deposits  (par 

value) .  per  cent - 

5.  U.  S.  bonds  on  hand  (par  value) .  - 

per  cents - -  -  ■ 

6.  Other   stocks,  bonds,  and  mort- 

gages (see  schedule) 


Liabilities. 


1.  Capital  stock  paid  in... 


2.  Surplus  fund 

3.  Undivided  profits . 


7.  Due  from  approved  reserve  agents 

(see  schmule) - ■ 

8.  Due  from  other  national  banks . . . . 

9.  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10.  Banking  house $ 

11.  Other  real  estate $ 

12.  Furniture  and  fixtures -$ 


125,  849.  00 
84, 322.  76 


4.  Circulating  notes  re- 
ceived from  Comp- 
troller   $ 

Less  am't  on  hand 
and  in  Treasury  for 
redemption 


5.  State  bank  circulation  outstand- 
ing   

16,72Lr2  !|    6.  Dividends  unpaid 


Dollars. 


500,000.00 

85,  000.  00 
15, 080. 89 


45,000.00 


13.  Current  expenses  and  taxes  paid. . 

14.  Premium  (market  value)  on  bonds 

for    circulation    $.. Other  pre- 
miums $ 


15.  Cheiks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  f<»r  clearing  house 

17.  Bills  of  other  banks -  -  -  -  • 

18.  Fractional  paper-currency, nickels. 

and  cents 

19.  Trade  dollars 

20.  Specie, viz: 

Goldcoin $34,000 

Gold   Treasury  certifi- 
cates   

Gold    Treasury  certifi- 
cates   

Gold  clearing  house  cer- 
tificates  

Silver  coin :  dolls.,  6,000 ; 
fract'l,  2,656 

Silver  Treasury  certifi- 
cates (act  Feb.  28, 1878) 


10.  000. 00 
5, 403. 16 

5,  999.  32 


22,  817. 02 

97,  7^4.  81 

6,  000.  00 

259. 50 


7.  Individual    deposits 

sub.iect  to  check . .  $1, 108,263.62 

8.  Demand  certificates 

of  deposit 

9.  Time  certificates  of 


30,000 


deposit 

10.  Certified  checks 

11.  Cashier's  checks  out- 

standing; teller's 

duebiUs 47,693.51 


12.  United  States  deposits 

i:i.  Deposits  of  U.  S.  disbursing  offi- 
cers   


14.  Due  to  other  national  banks 

15.  Due  to  State  and  private  banks 

aiul  bankers 


8, 256. 00 


72. 656. 00 


21 .  Legal  tender  notes 84, 000. 00 

22.  United  States  ceitificates  of  de- 

posit    for    legal-tender    notes 
(sec.  5193,  Rev.  Stat) 

23.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 

on  i'irculation) -  -  •       2, 250. 00 

24.  Due  from  U.  S.  Treasuer  (other 

than  5per  cent  reilemption  fund) . ! 


16.  Notes  and  bills  rediscounted. 

17.  Bills  payable 


1,155,957.13 


37,  703. 64 
10,621.48 

75, 000. 00 


Total 


....il,932,Giy.l4 


Total 1  1,932,619.14 


National  Bank,  Philadelphia,  Penna.,"  do  solemnly 


I,  G.  W.  Marsh,  cashier  of  "The  Keystone      .. 
swear  that  the  above  statement  is  true,  to  the  best  ot  my  knowledge  and  »>^^i»^f^^.    marsh.  Cashier. 


Correct.    Attest: 


D.  P.  S.  Nichols, 
Louis  Dreka, 
Samuel  Lucas, 

Directors. 


Stxtv:  or  VT.yrs!^Yi.yAS\x,  County  of  Philadelphia: 
Sworn  to  and  subscribed  before  me  this  nineteenth  day  of  December,  1888. 

[SEAL.]  ' 

Must  be  acknowledged  before  an  oflicer  having  an  oflicial  seal.    See  a<;t  approved  February  20, 188L 


John'w.  Barrox,  Notart/  Pvhlic. 


m 

r- 

i: 

< 

il 


issse 


H 


62 


INVESTIGATION   OF   NATIONAL   BANKS. 


Overdrafts. 


Secured : 

Standing  12  mouths  or  over . 


Temiwrary 


$2, 876. 18 


Unsecured : 

Standing  12  months  or  over. 

it  Q  it  it 

♦  «  Q  tt  it  ' 

«»            1         •*             •*        " 
Temporary   


SCHEDULES. 
Loans  and  discounts. 


On  paper  with  two  or  more  individual  or  firm  names $i,  095  00 

On  single  name  paper  (one  person  or  finn)  without  other  security !        '  ]87  00 

On  moit ":ages  and  ot her  real-estate  security 

On  U.  S.  l)onds  (demand  loans) \\\\ 

On  other  stocks,  bonds,  «fcc.  (demand  loans) I........"I....**.  65  00 

All  other  loans 


Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204.  Rev.  Stat 

Other  suspended  and  overdue  pa]»er .".'.'.""      8,432.64 

Liabilities  of  directors  (indiviffual  and  firm)  as  pavers 50, 846!  00 


None. 


OtJicr  stocks,  bonds,  and  tnortgages. 
Due  from  approved  reserve  agents. 


Hanover Xat $53,227.00  ' 

Tradesmen's  Nat '    72, 622. 00  ! 


Loans  exceeding  tlie  limit  prescrilied  by  section  5200  of  the  Revised  Statutes,  including  due  from 
State  and  private  banks  and  bankers,  none.  * 


Cheeks  and  other  cash  items. 


Checks  and  drafts  on  banks,  &.c.,  in 
this  city. 

(-hecks  and  drafts  on  other  banks 

Coupons 


$22,817.02 


U.  S.  refunding  cetiflcates... 


A 
was 
per  cent 


verane  reserve  and  intereM.—Avf^vi:^^^  reserve  for  last  :{0  days  (in  bank  and  with  reserve  acents) 
\  2J.56  per  cent  ot  deposit*  and  bank  l>alauce8.    The  highest  rate  of  interest  paid  by  the  bank  is  3 


Q.  Will  you  turn  to  the  examiner's  report  next  in  date  after  this  in- 
crease. Take  the  preeedinf:^  one  finst  and  the  other  atlfcerwards.— A. 
The  examination  immediately  preceding  the  increase  of  the  capital  iii 
1888  was  made  September  17, 1888. 

Q.  Will  youpleasestatethe'amountof thecapital  stock  tliere named  ?— 
A.  The  amount  of  the  capital  st-ock  paid  in  is  stated  at  $450,000.  If 
you  will  remember,  that  is  stated  in  the  letter  to  the  bank,  to  which  I 
called  attention,  stating  to  them  that  that  $50,000  was  improperly 
stated. 

By  Mr.  Cobb  : 

Q.  The  reply  stated  that  it  was  $500,000?—- A.  The  reply  said  there 
was  paid  in  $100,000,  and  that  the  capital  was  increased  to  $500,000. 

By  the  Chairman: 

Q.  The  amount  of  loans  and  discounts  reported  on  October  4, 1888 
by  the  bank,  is  $1,319,328.88.     What  is  it  in  the  examiner's  report  ?— A.  ' 
In  the  examiner^s  report  of  September  18,  1888,  it   is  $1,369,826.32. 
There  is  one  other  iteiQ  which  should  be  added  to  that— demand  loans 


INVESTIGATION   OF   NATIONAL    BANKS. 


63 


for  collateral  security,  $129,343.05.  That  would  undoubtedly  be  in- 
cluded in  the  first  item  ot  loans  and  discounts  in  that  report.  You  will 
notice  in  the  schedule  demand  loans  are  listed  at  125,000,  which  was 

substantially  the  same  item.  .  ^   .    .     ^  ^  v.        x 

Q  The  amount  due  from  reserve  agents  is  stated  in  October  at 
$148,539.31.  What  is  it  in  the  examiner's  report?— A.  The  amount  re- 
ported by  the  examiner  September  1 7, 1888,  as  due  from  reserve  agents, 

is  $135,336.66.  .      ,     ^  .  x. 

Q.  The  amount  due  from  other  national  banks  m  the  October  state- 
ment is  $93,649.28?— A.  In  the  September  report  it  is  $89,668.60. 

Q.  Amount  due  from  State  and  private  banks  is  $15,622.14!— A.  In 
the  September  report  it  is  $15,494.05. 

Q.  Exchange  for  clearing  houses  is  stated  here  at  $lo6,297.24.— A.  in 
Mr  Drew's  report  for  September  he  states  the  amount  at  $172,117.71. 

Q.  The  amount  of  specie  is  stated  at  $67,250.— A.  The  September 

report  makes  it  $67,053.75.  ,  ^^  .  , .      *    mi 

Q.  The  amount  of  legal-tender  notes  is  stated  at  ^  <  1,246.— A.  Ihe 
legal-tender  notes  here  is  stated  at  $30,817  j  but  this  is  part  of  the 
amount  I  gave  you  before — $67,053.75. 

Q.  That  would  make  a  difference,  then,  of  nearly  $71,000  on  that 
tern f— A.  What  does  the  specie  and  legal  tenders  aggregate  there? 

Q.  One  hundred  and  thirty-eight  thousand  four  hundred  and  ninety- 
six  dollars?— A.  Here  the  sum  is  $67,053.75.    The  difference  is  $71,000. 

Q.  Turn  to  the  liabilities:  The  surplus  fund  is  stated  at  $80,000 
here. — A.  It  is  so  stated  in  this  report. 

Q.  The  undivided  profits  are  $37,388.99.— A.  In  this  report  it  is 

$34  547  49. 

Q.  Circulating  notes  are  stated  here  at  $45,000.— A.  That  is  the 
amount  here,  less  the  notes  on  hand,  $44,510. 

Q.  The  individual  deposits  subject  to  check  are  stated  at  $1,174,- 
086.09. — A.  Individual  deposits  subject  to  check  are  reported  in  this  at 
$1,288,676.70,  to  which  add  demand  certificates,  $25,000. 

Q.  The  item  here  is  $43,737.56,  as  cashier's  cheeks.  Those  are 
entered  as  demand  certificates.— A.  They  should  not  be.  They  are  a 
totally  different  thing,  and  should  not  be  reported  under  the  same 
classification. 

Q.  Are  there  any  items  of  cashier's  checks  reported  in  that? — A. 

Kone. 

Q.  Due  to  other  national  banks,  $50,145.74.— A.  Here  it  is,  $115,- 

954.09. 

Q.  Due  to  State  and  private  banks,  $7,500.— A.  In  this  report  it  is 
$635.06. 

Q.  Bills  payable,  $125,000.— A.  It  is  so  in  this  report. 

Q.  Is  there  any  real  estate  shown  in  that  statement? — A.  There  is  no 
real  estate  in  this  report. 


64 


INVESTIGATION   OF   NATIONAL   BANKS. 


Exhibit  O. 


No.  of  bank,  2291. 

Examiner's  report  of  the  condition  of  ''The  Keystone  National  Bank,"  located  at  Phila- 
delphia,  in  the  county  of  Philadelphia,  State  of  Pennsiflrania,  at  3  o'clock,  p  m.. 
Sept.  17,  18SS. 

[Exsimination  commenced  at  2  o'clock  p.  m.    Examination  closed  Sept.  23.] 
Granville  B.  Haines,  President.  Gideon  W.  Marsh,  Catihier. 


Resources. 


1, 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 

11. 

12. 

13. 
14. 

15. 
16. 


Note's  and  bills  discounted 

Demand  loans  witli  collat.  secur. . . 

Overdrafts  (U8  atics.) 

TJ.  S.  bonds  t<)  secure  circ.  *  (4^) 

U.  S.  bonds  to  secure  deposits'^' 

r.  S.  bonds  on  liand    

Otber  Ht(»cks  and  bonds 

rremiums  paid 

Minor  coins 

Cash  items  (for  cliks.,  $3,388.02) . . . 

Due  from  national  banks  (49) 

Due    from   Stat«^    banks     and 

bankers  (7) 

Exrhanjies  for  clearing  house 

Checks  on  other  banks  in  same 

place  

National-bank  notes 

Due  from  ap.  res.  ag.,  viz. : 

Hanover  Nat.  Bank, 

N.  Y $51,918.17 

Trailesmen's   Nat, 
Bank.N.Y 82,06.3.19 

3rd  Nat.  Bank,  N.  Y.      1, 355. 30 


Dollars. 


1,369,520.32 
129, 343.  05 
3, 415.  92 
50,000 


Liabilities. 


1.  Capital  stock  paid  in  (50,000  new) 


2. 
3. 


3, 999.  32 

891.41 

3,  612. 46 

89, 668.  55 

16, 494. 50 
172,117.71 

10, 390.  67 
5,610 


Surplus  fund 

Other  undivided  profits,  viz. : 

Discount $22, 239. 19 

Exchange 618.77 

Interest 

rrtiniums 

R<-uts 84 

Protitand  loss 11,605.53 


17. 


Reserve  fund  in  bank,  viz. : 

Fractional  silver $3, 130. 25 

Silver  dollars 2,116 

Silver  Try  cert's  . . .  22, 407 

Gold  coin 3,583.50 

(jold  Try  cert's 

Legal  tender  notes . .  30, 817 

U.  S.  cert's  of  dep. . . 

C.  H.  cert's  of  dep ...  5, 000 


135, 336. 66 


18.  5  p.  c.  red.  fund  witli  Treas.  U.  S  . 

19.  Other  funds  with  Treas.  11.8 

20.  Banking-house     furni- 

ture and  fixt $10,000 


21.  Other  real  estatt?  and  mortgages. . . 

22.  Current  expenses $11, 677.  87 

Taxes  paid 

Interest  paid 4, 391 .  81 


C«sh  shoi-t . 
Total. 


67,  053.  75 
2,250 


10,000 


16, 069.  68 


4. 
3. 

6. 

7. 


Due  to  national  banks  (7) 

Due  to  State  banks  and  bankers  (2) 


Dividends  unpaid. 


Individual  deposits,  viz. : 

Subjei't  to  rheck  $1,  208, 676.  70 
Demand  cert's..  25,000 

Time  cert's 

Certified  checks. 
Cashier's  checks 


Dollars. 


450,000 
80,000 


34, 547. 49 

115, 954. 09 
635.06 

417.20 


8.  United  States  dejmsits 

9.  DeiK>sit«  of  IT.  S.  Disburs.  Off 

10.  Circulati«m  received $45,000 

Less  on  hnn<I  and  retn'd         490  I 


1,233,676.70 


11. 


12. 
13. 


State  bauk  circulation  outstand- 
ing   


Notes  and  bills  rediscoiinte<I. 
Bills  payable 


44, 510 


125,000 


2.084,780.00 


Cash  over. 


39.46 


Total 12,084,780.00 


*  Designate  what  IT.  S.  btuuls  are  held  in  each  case. 

[Note.— ExamiiMMssiiv  nMHicstrd  to  rciMut  below  wlictbfr  tlic  records  ;iro  fully  and 
explicitly  kept,  and,  if  not,  wJiether  ]»!oi)er  corrections  an«l  additions  have  been  made 
during  examination ;  whether  the  books  are  correctly  kejit,  and  how  often  aceonnta 
are  balanced,  which  othct^r  is  in  char'^e,  and  if  the  others  are  active  or  inactive; 
their  reputation,  salaries  ]>aid,  ami  bonds  required  of  tlu'ni;  whether  the  ofiieers  are 
trained  ]>ankers,  and  if  they  are  enf^ajjed  in  business  outsi<le  of  the  bank;  whether 
the  directors  meet  rej^ularly  as  a  board,  and  how  often;  the  number  of  shares  owned 
by  each;  whether  they  have  active  discount  and  examining  committees,  or  l«\ave 
management  entirely  to  the  otticers;  the  number  and  classcvS  of  stockhold<r8,  and 
whether  annual  meeting  was  regular ;  whether  the  office,  vault,  and  safe  are  secure, 
and  if  used  in  any  other  business  than  that  of  this  bank;  whether  its  business  is 
kept  entirely  distinct  and  se])arate.] 

Kecords:  In  good  order.     Hills  discounted  are  correct.    Thev  are  proved  quarterly. 

Other  books:  Well  kept;  3  individual  ledgers  (1,734  aces!);  balanced  monthly; 
$543.04  short;  a  recent  diff*euce. 


INVESTIGATION   OF   NATIONAL   BANKS. 


65 


President:  Manager  of  bank;  owns  791  shares  of  stock.  Head  of  "Granville  B. 
Haines  &  Co.,"  leading  dry  goods  house;  at  bank  two  hours  each  day.  Salary, 
$4,000.     No  bond. 

Vice-president:  None. 

Cashier:  Owns  no  stock;  a  trained  bank  officer.     Salary,  $3,500.     Bond,  $20,000. 

Assistant  cashier:  John  Hayes;  acts  as  paying  teller;  owns  no  stock;  an  experi- 
enced officer.     Salary,  $2,000.     Bond,  $15,000. 

Directors:  9  (and  vacancy  by  death,  Aug.  18,  1888,  of  Prest.  J.  C.  Lucas;  2,813 
shares  of  stock),  owning  2,588  shares.  Board  meets  twice  each  week.  Charles 
McFadden,  a  millionaire  railroad  contractor,  owns  625  shares  of  stock. 

Stockholders:  170;  all  have  certificates  of  stock;  par  of  shares,  50;  sells  55. 
Kstate  of  .lohn  C.  Lucas  owns  2,813  shares  of  stock. 

Office,  vault,  and  safe:  Good  room  on  Chestnut  st.,  near  TJ.  S.  Mint;  fair  vault 
and  safes;  2  watchmen.     Rent  paid,  $6,000. 

Dividends  and  surplus  (sections  5199  and  5204,  U.  S.  Revised  Statutes). 

Dat^*  of  last  dividend,  May  1,  1888;  amount,  $  ,  3  per  cent.  Carried  to  profit 
and  loss,  $4,226.51. 

Charged  oft*  since  last  examination;  Losses,  $  j  premium,  $  j  decrease  of 
values,  $ 

LOANS  AND  DISCOUNTS. 

A.  Paper  with  two  or  more  individual  or  firm  names $1,023,188.86 

B.  Single-name  paper  (one  person,  company,  firm,  or  members  of  a 

«-onij>any  or  firm)  without  other  security 314,  327. 46 

C.  Loans  and  discounts  secured  by  real  estate  mortgages  or  liens  upon 

real  estate 

1).  Demand  loans  secured  by  other  collaterals  (on  personal  security, 

$24,043.05) 129,343.05 

E.  Time  loans  secured  by  other  collaterals 32, 010 

Total  notes  and  bills  discounted 1,498,869.37 

Included  in  the  above  are — 

F.  Bad  debts,  as  defined  in  section  5204  of  the  Revised  Statutes..  4, 953. 88 

G.  Other  suspended  and  overdue  paper 46,  588. 25 

H.  Liabilities  of  directors  (individual  and  firm)  as  payers  (firm, 

$42,900) 172,324.00 

LOANS  EXCEEDING  THE  LIMIT  PRESCRIBED  BY  SECTION  5200,  U.  S.  REVISED  STATUTES. 

"John  C.  Lucas"  (late  prest.,  dec'd)  (demand  with  coUats.),  $65,300. 

Mem.  Demand  note,  $50,000,  in  above  amount,  secured  by  collaterals — will  soon 
be  paid  by  administrators — $35,000  now  in  bank. 

Overdrafts :  Of  these  $838.90  have  been  paid  during  examination;  $466.67  are  very 
doubtful. 


GENERAL   REMARKS. 


Supplementary  sheet  of  examiner's  report  of  September  17,  18SS,  of  the  Keystone  National 

Bank,  Philadelphia,  Penn. 

Of  loans  long  in  the  bank  the  following  require  mention : 

"J.  C.  Lucas,  trustee,"  with  city  liens  for  improvements  amounting  to 
$13,200  (a  demand  note) $12, 500 

Originally  $30,000  in  bank  when  a  State  bank:  difference  collected. 
Interest  is  paid.  When  this  was  taken  W.  Armstrong,  a  contractor,  was 
pres't.  of  the  bank. 

"Samuel  B.  Griffith,"  a  contractor,  order  "John  C.  Lucas,  pres't;  trust 

ac,"  (a  demand;  note  int.  pd^ 7,278 

8,' 136 
2, 929. 05 
8, 145. 76 

38, 988. 81 

At  an  interview  with  the  board  of  directors  this  day  (Oct.  2)  the  result  of  this 
examination  was  communicated  to  them,  aud  the  above  described  items  were  espe- 
cir.ll y  referred  to.    It  was  agreed  that  a  committee  shouM  take  these  matters  in 

3792 5 


66 


INVESTIGATION   OF   NATIONAL   BANKS. 


charffr  and  ascertain  the  likelihood  of  payment,  and  charge  otf  any  Iors  found  likely 

^""in  addition  to  this,  th,.  condition  of  the  bank  habitually  as  t<,  its  shortness  of  legal 
reserve,  its  almost  invariable  settlement  largely  in  debt  daily  at  *]>«  clearing  house, 
and  the  nlctiee  of  t>orrowing  fron.  banks,  not  <mly  to  settle  the  ^l^l**^/^;,^^^;^*  *« 
enable  tlu^  bank  to  kec,»  up  its  <liscountiug.  was  clearly  pointed  out  to  them  and 
thereis  good  reason  for  the  hope  that  the  new  numag.'ment  will  take  all  praetiral 
measures  to  improve  materially  the  condition  ot  the  bank.  „u         * 

This  bank  sthl  continues  to  act  as  the  "  depository  of  the  city  ^^^/^^^'^'^^^^y''^ 
of  councils.  That  officer  keeps  a  balance  in  this  bank  every  day  of  nearly  $4(X).(XK). 
It  is  the  opinion  of  the  examiner  that  this  account  h;us  largely  operated  to  throw  the 
bank  in  debt  to  the  clearing  house,  and  he  believes  the  bank  would  be  better  oft 
without  it,  as  now  managed.  .  ,     .,  ,.  ±    ^^     n.^ 

This  bank  will  occupv  new  quarters  this  month  in  the  new  building  erected  by  the 
late  oresident  of  the  bank,  at  corner  of  Chestnut  and  Juniper  sts. 

Mkm  •  The  examiner  will  keep  himself  informed  from  time  to  time  of  the  condition 
of  this  bank.     It  can  be,  and  should  be,  greatly  improved.  ^  ^  ^^^^ 

Examiner. 

To  the  Comptroller  of  the  Currency. 

Waahhigtovy  D.  C. 

Mem:  There  was  no  evidence  that  the  increase  of  capital  by  $.50,000  paid  in  has 
been  certified  by  the  Comptroller  of  the  Currency. 

r^oTE  —Under  the  head  of  General  Remarks,  the  examiner  should  mention  the 
character  of  collaterals  held,  and  give  a  general  description  ot  the  loans  an<i;|j8- 
coSnts,  overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses  bUs 
navable  or  other  iccommodatious  sought  by  the  bank,  and  the  necessity  therefor, 
lie  should  schedule  all  excessive  loans  obtained  by  any  corporation,  company,  or 
firm  through  its  stockholders,  members,  otticers,  or  employes  tor  the  beneht  and 
use  of  such  company,  corj»oration,  or  Hrm,  as  may  appeiir  from  the  credits  such 
account  has  received,  or  otherwise,  and  should  describe  the  manner  in  which  such 
accommodations  were  obtained.] 

GENERAL  REMARKS. 

Bad  debts. 

Due  1884-7.  "J.  H.  Haverly,"  doubtful ^o'S^TfiT 

9notes,  good  for,  say,  i ^,\n}i.t)i 

4, 953. 88 


*'  Other  past  due  paper. ^^ 


516 

08 

Due  1887!  "  McGrady,"  order  -  Carroll,"  bal.  good 200 

Due  1887.  3  notes,  with  att'y,  hopeful Si- 
Due  Jan.  and  Feb.,  1888.  2  notes,  secured  . . ----- -  -  -  -  -  -  -  -  -  ----,•,        »'» 

Due  Mar    to  Sept.,  inclusive.   30  notes  (doubttul  or  slow,  *'feouth^^ell, 
^ir'^'Megarre,"^         -McGlade,"$700;  -  lk>din,".f700;  -Eisenberg," 

$1  188  06) ■'      ' 

Due'May,  1888.' "'  Charies  Lawrence,  trustee,"  2  notes.     Bank  holds  plates 

andprintingmachineryascollaterals*..       .-.-..-.- ---....-..     ^'l**^-'^ 

Due  Sept.  14,  1888.  ''  H.  H.  Yard,"  own  order  (pd.  during  examination)..  10,000 
Due  1888.  2  notes,  good - ^"'^ 

46.  .588. 25 

Mem-  It  is  the  intention  of  the  bank  to  reduce  substantially  the  above,  as  well 
as  bad  debts,  by  charging  oft'  items  or  parts  thereof  at  next  dividend  period  (Nov., 

1888).  :_____ — 

*  See  supplementary  sheet. 


INVESTIGATION   OF   NATIONAL   BANKS. 


67 


Balances  with  other  banks,  including  reserve  agents,  have  been  verified  by  cor- 
respondence. 

Interest  is  paid  on  some  60,000  of  personal  deposits. 

Average  reserve  for  the  last  thirty  days,  22  per  cent. 

Bills  payable,  ''clearing  house  due  bills,"  with  bills  discounted  as  security,  as 
follows : 


Loan. 

Security. 

Bank. 

$25, 000 
75, 000 
25,000 

$37, 285.  77 
102,  559. 07 

Farm.  &,  Mech.  Nat.  Bank.  Phila. 
4th  St.  Nat.  Bank,  Phila. 
Central  Nat.  Bank,  Phila. 

125,000 

. 

Mem:  In  addition  to  the  above  this  bank  owes  as  certificates  of  deposit  $25,000 
to  the  Farm,  and  Mech.  Nat.  Bank  as  above,  making  total  amt.  $150,000. 
Please  see  supplementary  sheet. 

W.  P.  Drew,  Examiner. 

To  the  Comptroller  of  the  Currency, 

Washington,  D.  C. 

Q.  Will  you  take  the  next  examiner's  report,  and  give  us  the  date  of 
it! — A.  The  next  examiner's  report  is  dated  April  9,  1889. 

Q.  What  is  the  amount  of  cai)ital  stated  here? — A.  The  amount  paid 
in  is  $500,000. 

Q.  What  is  the  amount  of  surplus  ! — A.  $85,000. 

Q.  And  the  amount  of  undivided  profits! — A.  $38,501.76. 

Q.  And  the  amount  of  notes  and  bills  discounted! — A.  $1,356,092.91. 

Q.  What  is  the  amount  of  demand  loans! 

Q.  Overdrafts  are  $16,430.62.  There  is  an  item  here  among  the  re- 
sources of  cash  items,  $3,613.46. 

Q.  What  does  that  mean! — A.  Cash  items  on  this  report  are  stated  at 
$24,627.94.  The  description  of  this  is  not  contained  in  this  report.  They 
consist  usually  and  properly  of  checks  that  are  handed  in  after  the  books 
are  closed  for  the  day.  If  a  depositor  should  come  in  and  make  a  de- 
posit after  the  bank  has  been  closed,  covering  checks  given  upon  this 
bank,  or  some  item  of  that  sort,  that  would  not  absolutely  be  money, 
but  would  be  converted  into  money  the  next  day.  It  would  be  tem- 
porarily carried  as  a  cash  item. 

Q.  It  seems  to  have  grown! — A.  It  frequently  happens  in  banks  and 
gets  to  be  a  pool  for  worthless  items  of  small  amounts. 

By  Mr.  Cobb: 

Q.  It  would  be  reported  next  day  ! — A.  Properly  the  cash  items  should 
be  items  that  would  be  converted  into  bankable  funds  next  day.  We 
have  great  trouble  in  getting  banks  down  to  that.  It  becomes  a  little 
pool  into  which  they  drop  doubtful  or  worthless  items. 

Q.  That  grows  right  along! — A.  Unless  the  examiner  calls  attention 
to  it,  the  bank  is  liable  to  keep  on  increasing  that  practice. 

By  the  Chairman  : 

Q.  I  want  to  call  attention  to  the  discrepancy  between  the  cash  items 
of  the  report  of  September  23,  1888,  and  thase  of  April  9,  1889.  The 
item  here  is  $3,612,  and  the  other  is  $24,627.91.  There  is  a  memoran- 
dum, "for  checks,"  $24,547.51,  showing  that  the  larger  part  was  for 
<*hecks.  and  the  remainder  for  something  else. — A.  The  item  due  from 
national  banks  is  stated  at  $8,906.08. 

Q.  It  is  stated  here  at  $10,932.62. — A.  State  banks  and  bankers, 
$1(»,494.50.    This  shows  $21,651.42. 


(    : 


68 


INVESTIGATION   OF   NATIONAL   BANKS. 


Q.  Exchanges  for  clearing  house  is  $172,117.71.— A.  It  is  here  $217,- 

Q.  The  amount  in  the  hands  of  reserved  agents  is  $135,335.66.— A. 
This  shows  that  amount  to  be  $139,288.88.  *  4/?7  akq  7k  ^ 

Q.  And  the  amount  of  (^ash  in  the  bank  is  stated  at  $67,053.75. 
What  is  the  item  there!  Does  it  include  legal  tender  notes?— A.  It 
includes  everything  in  the  banking  house  on  deposit.     It  is  stated 

here  at  $115,740.  .  ^  ^  •    ^i,-  ^     ^  *a  -^oi  ai 

Q   The  amount  of  interest  paid  is  stated  in  this  report,  at  $4,3yi.»l.— 

A.  Here  it  is  $3,100.63.  ....        ^       -^  ^  .u 

Q.  In  regard  to  that  item,  the  amount  of  interest  paid  covered  the 
period  from  the  last  examination,  or  from  what  date?— A.  That  simply 
shows  the  amount  of  interest  that  has  been  paid  and  not  covered  into 
profit  and  loss  account.  It  is  owing  to  the  practice  of  the  particular 
bank  as  to  when  that  is  charged  off.  It  might  be  one  month  or  six 
months,  but  it  is  always  charged  off  at  the  dividend  period. 

Q  The  amount  due  national  banks  is  stated  at  f  llo,9o4.0U.— A.  un 
this'report  it  is  stated  at  $106,622.52. 

Q.  The  amount  of  individual  deposits  is  stated  at  $1,233,676.  <0.— A. 
The  same  item  is  stated  here  at  $1,048,945.52. 

Q.  No  cash  checks  are  stated  here.— A.  There  are  none  m  this  re- 
port.   Demand  certificates  are  $81,289.59. 

Q.  The  amount  of  bills  payable  is  given  here  at  $125,000.— A.  In 

this  is  stated  at  $200,000.  ..i.    .^v.    ^r.  ^  k      i«^si 

Q  I  call  attention  to  the  two  reports,  one  ot  the  4th  of  October,  18cSh, 
and  "one  of  the  12th  of  December,  1888,  in  which  the  cashiers'  checks 
are  stated  in  one  case  at  $43,737.56,  and  in  the  other  at  $47,693.51  Is 
there  any  item  in  your  report  that  can  be  supposed  to  include  cashiers' 
checks?- A.  Those  are  marked  tellers'  due  bills.' 

Q  One  gives  tellers'  due  bills  and  another  cashiers'  checks.- A.  Cash- 
iers' checks  is  a  well  understood  item.  When  you  take  to  a  bank  a  note 
for  $10,000  to  have  it  discounted,  the  discount  clerk  will  figure  off  the 
discount,  say  $100,  and  give  you  a  cashier's  check  for  the  remainder. 
You  take  that  and  deposit  it  in  the  bank  or  some  other  bank.  In  Phila- 
delphia it  is  customary  for  the  cashier  to  issue  a  due-bill  for  the  differ- 
ence due  the  clearing-house.  When  he  goes  to  the  clearing-house  m  the 
morning  he  has,  say,  $200,000,  in  checks  on  other  banks.  He  deposits 
those  Then  there  are  checks  against  his  bank  for  $250,000,  and  he 
would  thereby  owe  the  clearing  house  $50,000.  It  is  customary  to 
either  pay  that  in  money  or  to  give  the  bank  a  due-bill  for  the  amount 
and  pay  it  next  day  through  the  clearing  house.  Consequently,  an 
examination  of  such  a  bank  as  the  Keystone  would  not  show  that, 
there  being  no  such  classification  in  the  report.  I  think  designating 
them  as  cashiers'  checks  is  improper. 


tellers'  due-bills.- A.  I  am  in  the  same  trouble  that  you  are  about  that. 

I  do  not  see  any.  .oo.^«     a    r 

Q.  When  is  the  next  report  of  condition,  February,  1889?— A.  In 
this  report  the  item  listed  is  ^' bills  payable."  This  report  of  April  9 
says  it  shows  bills  payable,  due-bills,  and  certificates  of  deposit.  All 
are  grouped  together;  for  instance,  National  Bank  of  the  Republic, 
$^>r>,000;  Foreign  Exchange  National  Bank,  $20,000;  Fourth  National 
Bank,  $75,000 ;  Central  National  Bank,  $25,000 ^  Seventh  National  Bank, 


INVESTIGATION   OF   NATIONAL   BANKS. 


C9 


$25,000;  Third  National  Bank,  $30,000;  aggregating  .f  205,000,  which 
was  secured  by  pledges  of  loans  and  discounts  of  $.'^3G,000. 

Q.  That  should  not  have  been  on  the  Examiner's  report  under  the 
head  of  notes  and  bills  discounted! — A.  No,  sir. 

Q.  They  were  not  discounted,  but  merely  pledged  as  collaterals! — 
A.  Yes,  collaterals  for  the  payment  of  these  obligations  to  the  several 

banks. 
Q.  In  the  Examiner's  report  where  does  that  appear!— A.  It  is  under 

the  head  of  bills  payable. 

Q.  I  thought  there  was  a  reduction  in  bills  payable,  on  the  report  of 
September,  1888,  of  $125,000!— A.  It  stands  here  at  $200,000.  Of 
course,  the  due-bill  account  should  be  separately  and  distinctly  stated. 
A  certificate  of  deposit  is  a  totally  different  account,  and  should  be 
separately  stated.  Neither  of  them  should  be  classed  as  bills  payable. 
Unless  that  is  done  it  is  impossible  to  tell  which  are  due-bills  and  which 
are  bills  payable. 

Q.  You  have  the  report  of  condition  of  February  26,  1889.  In  that 
report  bills  payable  appear  at  $50,000,  I  believe!— A.  Yes,  sir. 

Q.  And  the  tellers' due-bills  at  what  amount!— A.  $67,219.41. 

Q.  And  then  you  have  another  report  of  condition  in  May! — A.  I 
have  one  dated  May  13, 1889. 

Q.  What  does  that  show!— A.  Tellers'  bills  are  $157,003.43. 

Q.  Bills  payable!— A.  There  is  nothing  stated  as  to  bills  payable.     , 

Q.  Pra<?tically,  the  two  items  of  tellers'  due-bills  and  bills  payable  on 
the  report  of  condition,  cover  the  item  called  bills  payable  on  the  ex- 
aminers' report.  They  refer  to  the  same  class  of  indebtedness! — A. 
The  three  items  of  the  cashiers'  checks,  due-bills,  and  bills  payable 
seem  to  be  sometimes  grouped  and  sometimes  stated  separately  in  both 
reports  of  condition  and  in  the  examiner's  report.  They  do  not  seem 
to  have  been  carried  with  sufficient  exactness  in  stating  liabilities  on 
account  of  those  several  issues  of  obligations. 

By  Mr.  Sperby  : 
Q.  I  suppose  this  increase  is  satisfactory  to  you  as  it  appears! — A. 
I  can  not  say  that  it  is  satisfactory  as  it  appears  in  these  accounts. 
While  the  amount  of  the  balances  of  the  various  accounts  indicate  pay- 
ment having  been  made,  the  balances  of  these  accounts  may  have  been 
fictitious  and  not  correct;  but  so  far  as  the  reports  show,  it  would  ap- 
pear that  the  capital  had  been  properly  paid  in. 


1  s 
i 

i 


■  'Tail  ii 


rJUbmbSmiaifftm 


n 


H 


*•- 


.  Q|» 


70 


INVESTIGATION   OF   NATIONAL   BANKS. 


KxmiuT  P. 


No.  ol  bank,  J'iOl. 
[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  eliauge  any  of  the  printetl  items.] 

Seport  of  Ihe  condition  of  "  The  KeyHtone  National  Bank,"  at  Philadelphia,  in  the  State 
of  Fenn.,  at  the  close  of  businens  on  the  S6  day  oj  Feb.,  ISSU. 


Dr. 


Cb. 


Resonrces. 


Dollars. 


1.  Loans  and  discounts  (see  schedule) 

2.  Overdrafts  (i»ee  schedule) 

3.  r.  S.  bonds  to  secure  circulation 

(par  value)— per  cents,  4^  per 
cents. 

4.  U.  S.  bonds  to  secure  deposits  (par 

value)— per  cents. 

5.  tr.  S.  bonds  on  hand  (par  value) 

— ]>er  cents. 

6.  Stocks,     securities,     judijroents, 

claims,  etc.  (see  schedule). 

7.  Due  fnmi  approved  reserveagents 

(8tH3  schedule). 

8.  Due  from  other  national  banks.  - . 

9.  Due  from  State  and  private  banks 

an»l  bankers. 

10.  lianking  house $ 

11.  Furniture  and  fixtures  ..  $10,000 

12.  Other  real  estate  and  mortgages 

owned  (see  schedule). 

13.  CuiTeut  exi)enses  and  taxes  jHud. . 

14.  Premium  on  bonds  for  circulation, 

$— — .     I'leniium  <m  other  U.  S. 
•bonds,  $ . 

15.  Checks  antl  other  i'ash  items  (see 

8che<lule). 

16.  Exchanges  for  charing  house 

17.  Bills  «if  otlier  banks 

18.  Fractional  pajiercurrency,  nickels, 

and  cents. 

19.  Specie,  vi/,: 

Gold  coin $40,000 

Gold  treasury  certificates, 
(iold  clearing-house  certi- 
ficates   $80,000 

Silver  dollars $  9, 460 

Silvertreasury  certificates 
Fractional  silver  coin $  4, 580 


1,256,022.95 
1,068.41 
50,000.00 


34,992.74 

111,445.40 
47,624.81 


10, 000. 00 


17, 894. 63 
3, 999. 32 


28, 309. 45 

185, 889. 21 

10,  550. 00 

1, 196. 79 


Liabilities. 


1.  Capital  stock  paid  in 


2. 
3. 

4. 


Surplus  fund 

TJnaiyided  profits  . . . 

Circulating  notes 
received  from 
Comptroller $ 

Lessam't  on  hand 
and  in  Treasury 
for  redemption 
or  in  transit $ 


Dollars. 


500,000.00 

85. 000.  00 
30,  207.  54 


Legal  tender  notes 

United  States  certilicates  of  de- 
posit for  legal-tender  notes  (Sec. 
5193,  Kev.  Stat.). 

Redemption  fund  with  U.  S.  Treas 

urer  (not  more  than  5  per  cent. 

on  circulation). 

23.  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redempt  ion  fund. 


20 
21. 


22 


Total 


134,  040. 00 
92,  000. 00 


2,250.00 


6. 

7. 

8. 

9. 

10, 
11 


State  bank  circulation  outstand- 
ing. 

Dividends  unpaid 


45, 000. 00 


7,953.00 


Individual  dejwsits 

sbject  to  check . .  $1 ,  133,  334. 97 

Demand  certificates 

of   deposit $ 

Time  certificates  of 

deposit $ 

Certified  checks.... $ 
Cashiers     checks 

outstanding; 

teller's  due  bills..  $        7,219.41 


1,987,343.71 


12. 
13. 


14. 

15 
16 


17. 
18. 


United  States  deposits 

Deposits  of  U.  S.  disbursing  of- 
ficers. 

Due  from  approved  n-serveagents  ^ 

(see  schedule). 

Due  to  other  national  banks 

Due  to  State  and  private  banks 

and  bankers. 

Notes  and  bills  rediscontinueil . . 
Bills  payable 


1,200,554.38 


56, 953. 21 
11,675.58 


50,000.00 


Total 


1,987,343.71 


T  G  W  Mar.sh,ca.shierof  "The  Keystone  Nat'l  Bank.  Philadelphia,  do  solemnly  swear  that  the 
above  statement  is  true,  to  the  best  of  iuy  knowledge  and  belief,  and  that  the  sche«lules  on  back  of  the 
T^ln  have  been  carefully  tilled  out  and  fully  and  correcUy  represent  the  true  state  of  the  seNeral 
matters  therein  contained.  ^   ^   Maesh,  Va»hier. 


Correct.    Attest: 


State  of  ■Pennsylvania,  County  of  ThiXadel^hia: 
Sworn  to  and  subscribed  before  in©  this  6th  day  of  March,  1889. 

[Notary  seal.] 


G.  B.  Haines, 
Hy  Van  Bkil, 
D.  P.  S.  Nichols, 

Directors. 


John  W.  Basbon,  Notary  Public, 


< 


INVESTIGATION   OF   NATIONAL   BANKS. 


71 


Fill  all  schedules,  writinji  in  the  the  words  "  None  "  wherever  no  amount  is  to  be  entered. 

SCHKDULKS. 
Loans  and  discounts. 

On  demand,  on  U.  S.  bonds - -  - ,- f  „ .  - ,_  „- 

"       "  stocks,  bonds,  and  other  personal  securities |  »*,  »* '•  ^^ 

On  time,  papers  with  two  or  more  individual  or  firm  names ».  - |J84,  i^o.  /4 

"      "      single-name  paper  (one  jierson  or  firm)  without  other  security |18<,  yoU-  w 

"      "      secured  by  stocks,  bonds,  and  other  personal  securities ^r  •  \: " " : * 

"      "      on  mortgiiges  and  other  real  estate  security  sancti«)ued  by  Sec.  5137,  Rj  S.  (see 

On  time,  on  mortgages  and  other  real-estate  security  not  sanctioned  by  Sec.  5137,  R.  S.  (see 


schedule) 
Total 


$ 


Includetl  in 
Bad  debt 


the  above  are no^20.66 

x,«««o»t8,  as  defined  in  section  5204,  Rev.  Stat Jio'-^'no 

Other  su.si)eiided  and  overdue  paper ^Tak  Annnn 

Liabilities  of  directors  (individual  or  firm)  as  payers ^i^^.  *>W- "" 

Loans  exceeding  tlie  limit  jirescrihed  by  Section  5200  of  the  Revised  Statutes,  including  amounts  in  excess 

of  this  limit  due  from  State  and  private  banks  and  bankers. 


None. 
None. 


Stocks,  securities,  judgments,  claims,  etc. 
Balance  due  from  or  to  approved  reserve  agents. 


Chase  Nat'l. 
Tradesmens 


From — 


22, 747. 74 
12, 245. 00 


To— 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks 


Average  reserve  and  in f^^ rest. —AvGrage  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  was 
rVij  P«r  cent,  of  dei>osits  and  bank  balances.    The  highest  rate  of  interest  paid  by  the  bank  is  3  per 


26 
cent 


Overdrafts. 


Secured : 

Standing  12  months  or  over. 
6        "  "    - 


3 


Temporary 


Unsecured : 

Standing  12  months  or  over. 
"  6       "  "    . 

K  Q  it  ii 

"  1  "  "     . 

Temporary 


1,068.41 


Other  real  estate  and  mortgages  oivned. 


Describe  property  and  nature  of  se- 
curity, and  state  from  whom  it  was 
obtained. 


Estimated 
actual 
value. 


Amonnt  of 

prior  lien, 

if  any. 


Amount  of 
debt  se- 
cured. 


Date  when 
acquired. 


State  fully 

how 
acquired. 


Loans  and  di.seounts,  secured  by  mortgages  or  other  real-estate  sec%irity. 
[Sanctioned  by  Sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Description  of  real 
estate. 


Estimated 
actual 
value. 


A  mount  of 
debt  se- 
cured. 


Am't  of 

prior  lien, 

if  any. 


Date  when 
acquired. 


State  how 
acquired. 


*  See  letter  4-23  '89. 


t  See  letter  3  18. 


i 


.Omim 


'*■< 


;'l 


i.i 


72  INVESTIGATION    OF    NATIONAL   BANKS 

Loan$  and  diteounts,  secured  by  mortgaget  or  other  real-e»tatete^urilp—Coniinnei\. 
[Not  sanctioned  by  iS«c.  5137,  U.  S.  Kevised  Statutes.] 


X^me  of  debtor. 


Description  of  real 
estate. 


Estimated 
actaal 
value. 


Amount  of 

debt  H«- 

cured. 


Amount  of 

pri«»r  lieu, 

if  any. 


Dat«  wlien 
acquired. 


State  how 
acquired. 


Exhibit  Q. 

No.  of  bank,  2291. 


Examiner' 8  report  of  the  condition  of  the  Ketjfttone  National  Bank,  located  at  Philadelphia, 
in  the  county  of  FhUadelphia,  State  of  PeintHjilrania,  at  10  o'clock  a.  m.,  April  9,  18S9. 

[Exainluutiou  commenced  at  fl  o'clock  a.  m.     Examination  closed  April  13. j 
Gkawville  B.  Haines,  President.  Gideon  W.  Maksh.  Gathier. 


Kesources. 


1. 
2. 

3. 
4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 

18. 
14. 

15. 
16. 


Notes  and  bills  discounted 

Demand  loans  with  collateral  se- 
curity  

Overdrafts • 

U.  S.  bonds  to  secure  circulation* 


(4i). 
U.S. 


bonds  to  secure  deposits* 

U.S. bonds  on  hand* 

Other  stock  s  and  bonds 

Premiums  paid 

Minor  coins 

Cash  items  (for  checks,  $24,547.51) . 

Due  from  national  banks  (35) 

Due  from  State  banks  and  bankers 

(12) 

Exchanjifes  for  clearing- house 

Checks  on  other  banks  in  same 

place 

National-bank  notes 

Due  from  app'd  reserve  agents,  viz : 
Chase  Nat.    Itank, 

New  York $19,755.01 

Tradesmen's   Nat . 
Bank,  NewYork .    19, 533. 81 


Dollars. 


1.  35C,  092. 91 

34,  400. 00 
16,  930.  60 

50, 000,  00 


3, 999. 32 

2:56.81 

24,  627.  94 

109,320.28 

21,551.82 
217, 980.  .57 

20, 193.  28 
6, 425. 00 


Liabilities. 


1.  Capital  stock  paid  in 


Suridiis  fund 

Other  undivided  protits,  viz : 

Discount $30,005.88 

Exi'Iiauge 

Interest ; 

Premiums i 

Rents  (boxes) 1,  082. 52  ' 

Profit  and  loss  ...      7,  353. 36  I 


Dollars. 

.500, 000.  00 
8.'),  000.  00 


.38.  .501.  76 

4.  Due  to  national  banks  (8) \    106, 022.  .52 

5.  Due  to  State  banks  and  bankers  (3)|        8, 408.  60 


17. 


Reserve  fund  in  bank,  viz : 

Fractional  silver. .     $1, 392.  50 

Silver  dollars 6, 911. 00 

Silver  Tr'y  cert's .    24, 949. 00 

Gold  coin 10,436.50 

Gold  Tr'y  cent's ...       1, 480.  00 
Legal-tender  notes    20, 571. 00 

U.  S,  cert's  of  dep 

C.  H.  cert's  of  dep .     50, 000. 00 


18. 
19. 
20. 


21. 
22. 


5  p.  c.  red'n  fund  with  Treas.  U.  S. 

Other  funds  with  Treas.  U.  S 

Banking  house 

Furniture  and  flxt'rs. .  $10, 000. 00 


Other  real  estate  and  mortgages  . . 

Current  expenses $20,  .596. 44 

Exchg 618.08 

Interest  paid 3,108.63 


Cash  short . 
Total. 


Dividends  unpaid 

( »vei«lrafts 

Individual  deposits,  viz: 

Snbjeit  to  clietk.  $967,  664.93 
Denujnd  cert  ifs . .     SI,  380. 59 

Time  eertilicites 

Certified  checks 

Cashier's  checks 


3, 953.  00 
16,9.30.  CO 


8. 
39,  288.  82il     9. 

10. 
11. 


12. 

115.740.00     13. 
2.250.00 


United  States  deposits 

Deposits  of  U.  S.  disbursing  of-  j. 

fleers.  1 

Circulation  received  .  $45, 000.  00 
Less  on    hand    and 

refn'd i 


1,048,945.52 


State  bank  circulation  out-  '. 
stan<ling.  ! 


4.5,000.00 


Noteis  and  bills  rediscount«d 

Bills  payable 

Cash  over 


1 


10,  000. 00 


24, 323. 15 


2, 053, 372. 50  i 


Total. 


200,000.00 
10.50 


2  053,372.50 


»  Designate  what  U,  S.  bonds  are  held  in  each  ca.se. 


V 


INVESTIGATION   OF   NATIONAL   BANKS.  73 

[Note. — Examiners  are  requested  to  report  below  whether  the  records  are  fully  and 
explicitly  kept,  and,  if  not,  whether  proper  corrections  and  additions  have  been 
made  during  examination ;  whether  the  books  are  correctly  kept,  and  how  often 
accounts  are  balanced:  which  oflScer  is  in  cha-rge,  and  if  the  others  are  active  or 
inactive ;  their  reputation,  salaries  paid,  and  bonds  required  of  them ;  whether  the 
officers  are  trained  bankers,  and  if  they  are  engaged  in  business  outside  of  the 
bank;  whether  the  directors  meet  regularly  as  a  board,  and  how  often;  the  num- 
ber of  shares  owned  by  each ;  whether  they  have  active  discount  and  examining 
connnittees,  or  leave  management  entirely  to  the  officers ;  the  number  and  classes 
of  stockholders,  and  whether  annual  meeting  was  regular ;  whether  the  office, 
vault,  and  safe  are  secure,  and  if  used  in  any  other  business  than  that  of  this  bank, 
whether  its  business  is  kept  entirely  distinct  and  separate.] 

Records:  Complete;  bills  discounted  found  correct.     They  are  proved  quarterly. 

Other  books:  Well  kept;  3  individual  ledgers  (1,617  accts.)  balanced  monthly; 
$1,000  over. 

President:  Head  of '^Granville  B.  Haines  «fe  Co.,"  leading  dry -goods  house;  owns 
shares  of  stoc^k ;  a  reputable  and  successful  merchant ;  gives  two  hours  daily  to  bank ; 
salary,  $4,000;  no  b«md. 

Vice-president:  Ncme. 

Cashier:  Owns  50  shares  of  stock;  an  experienced  and  indefatigable  officer; 
salary,  $3,500;  bond,  $20,000. 

Assistant  cashier:  None. 

Directors:  9,  owning  2,560  shares;  mostly  in  active  business;  should  meet  twice 
each  week ;  examine  accts.  semiannually ;  Charles  McFadden,  a  wealthy  contractor, 
owns  625  shares ;  D.  B.  Nichols  owns  250  shares. 

Stockholders:  173  certificates  of  stock  to  all;  estate  of  J.C.Lucas,  late  president, 
dec'd,  owns  3,469  shares;  par,  $50;  call,  $57. 

Office,  vault,  and  safe :  Spacious  and  well-equipped  banking  room  in  new  Lucas 
building,  cor.  Chestnut  and  Juniper  sts. ;  superior  vaults,  safes,  with  "  safe  deposit " ; 
2  watchmen ;  rent  paid,  $13,000. 

DIVIDENDS  AND  SURPLUS   (SECTIONS  5199  AND  5204,    U.    S.    REVISED   STATUTES). 

Date  of  last  dividend,  November  2, 1888;  amount,  3  per  ct. ;  carried  to  surplus, 
.$5,000. 

Charged  off  since  last  examination :  Losses,  $4,824.08;  premiums,  $ ;  decrease 

of  values,  $ 

LOANS  AND   DLSCOUNTS. 

A.  Paper  with  two  or  more  individual  or  firm  names $1, 046, 015.  38 

B.  Single-name  paper  (one  person,  company,  firm,  or  member  of  a 

company  or  firm)  without  other  security 261, 694. 53 

C.  Loans  and  discounts  secured  by  real  estate  mortgages  or  liens  upon 

real  estate 

D.  Demand  loans  secured  by  other  collaterals 34, 400. 00 

E.  Time  loans  secured  by  other  collaterals 48,  383. 00 

•  

Total  notes  and  bills  discounted 1,390,492.91 

Included  in  the  above  are — 

F.  Bad  debts,  as  defined  in  section  5204  of  the  Revised 

Statutes  

G.  Other  suspended  and  overdue  paper $26, 575. 35 

H.  Liabilities  of  directors  (individual  and  firm)  as 

payers  firm,  $79,603.83 108,778.83 

LOANS  EXCEEDING  THE  LIMIT  PRESCRIBED  BY  SECTION  5200,  U.*  S.  REVISED  STATUTES. 

John  Wanamaker,  direct $83,000.00 

John  Wauamaker,  G.  H.L.Jones 50,000.00 

133,  000. 00 

"Granville  B.  Haines  &  Co." 59,603.83 


■ 


n 


74  INVESTIGATION   OF   NATIONAL   lUNKS. 

Examinvi'H  report  on  the  Keyslonc  Sni'ional  Hank. 

PniLAi>KLriiiA,  Pa.,  Jj>n7  9,  1889, 
[Supplementary  sheet.] 
Overdrafts. 

C.N.  Thellinbarger,  director,  made  good  bv  discovmt H  ^55. 82 

Estate  of  Jolin'C.  Lucas  (late  president,  dec^d),  by  administrators,  to  com- 
plete payment  to  contractors  for  erection  of  T).".  houses  on  Fi'dcral  street, 
Philadelphia,  under  construction  at  time  of  Mr.  Lucas'  death;  will  be 
paid  soon lb,  Mi^.  W 

21, 386. 22 
Other  overdrafts  (37  accts. )  probably  good 9, 171. 25 

30, 557. 47 

Mem.— During  this  examination  Mr.  Henry  Van  Beil  (301  shs.)  was  elected  vice- 
president  of  this  bank,  and  he  will  be  at  once  the  principal  manager,  fhis  is  an 
important  step,  and  in  the  right  direction.  He  is  a  careful  merchant,  and  brings  to 
the  discharge  of  his  new  duties  a  thorough  and  conservative  business  tal^t.  llis 
standing  is  good  among  business  men  and  in  the  community  generally.  Even  tne 
few  days  since  his  election  the  condition  of  the  bank  in  important  features  has  im- 
proved, and  it  is  conlidcutly  expected  that  under  his  management  the  ahnost  uni- 
form daily  settling  in  debt  to  the  clearing-house,  which  has  brought  upon  the  bank 
hitherto  some  dispute,  particularly  among  banks,  will  be  corrected  and  permanently 
corrected;  borrowing  money  to  loan  again  will  bo  stopped,  and  great  care  and  new 

vigilance  will  be  observed.  •  ^  i       4.1  i-v  + 

The  chief  error  in  management  has  been  overloaning,  under  a  mistaken  tneory  cnat 
failure  to  accommodate  all  business  among  its  patrons  would,  under  the  stress  of 
competition,  lose  to  the  bank  valuable  accounts. 

This  bank  continues  to  act  as  the  depository  of  the  city  treasurer,  having  an  average 
balance  from  that  officer  (.f  $  1()(),()(X)  daily.  This  function  it  shares  with  the  3rd  IS  at. 
Bank,  the  city  treasurer  alternately  drawing  on  each  for  a  period  ot  thie.e  months. 
M«M.— A  recentlv  .hartenul  State  institution,  ^^The  Central  Savings  tund  and 
Trust  Company,"  with  practically  the  same  stockholders  as  this  bank,  will  be  organ- 
ized shortly  and  will  Oicupy  a  part  of  the  banking  room,  thus  materially  reducing 

the  rent.  .  .    ,      1     .     -x  1    '\a- 

With  proper  management  there  is  no  reason  why  this  bank,  m  its  new  buiiamg 
and  in  a  most  eligible  location,  should  not  prove  successful.    I  believe  it  will. 

W.  P.  Drew,  Examiner, 

To  the  COMPTUOi.LEIi  OF  THE  CURRENCY, 

WaHhinyton,  J),  C. 

[Note.— Under  the  head  of  '^general  remarks"  the  examiner  should  mention  the 
character  of  col  laterals  held,  and  give  a  general  description  of  tUe  loans  and  dis- 
counts, overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses,  bills 
payable,  or  other  accommodations  sought  by  the  bank,  and  the  necessity  theretor. 
He  should  schedule  all  tsxcessive  loans  obtained  by  any  corporation,  company,  or  hrm, 
through  its  stockholders,  members,  officers,  or  employ^^s,  for  the  bem-tit  and  use  ot 
such  companv,  corporation,  or  tirm  as  may  appear  from  the  credits  such  aecount  has 
received,  or  otherwise,  and  should  describe  the  manner  in  which  such  accommoda- 
tions were  obtained. J  1 

GKNKRAL  REMARKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


Tf) 


Due  \SHH.  W.  n.  Brown,  own  order,  interest  ])aid,  good 2,  ofK).  (H) 

Due  1X88.   '^Melanv,"  renewal,  intc^rest  paid,  hopeful 26S.00 

Due  1888.  "(4.  B. '  Morse,"  $590;   '*E.  R.    Bodin,"   $000   int.  pd,    go(»d, 

probably 1,490.00 

Due  1888.  "  L.  L.  Cann,"  balance  from  $3,000;  difference  paid,  hopeful.  2,437.06 

Due  1889.  "Nolan  &.  Co.," $500;  "Zaiie,"  order  "Kelley,"  $2040,  good. ..  2, 540. 00 

Due  May,  1888.  (Renewals)  2  notes,  "Charles  Lawrence,  trustee." 8, 145. 76 

$26, 575. 35 

j^Ipm.— Recognizing  the  liability  of  the  late  Prest.  J.  C.  Lucas,  in  the  last-men- 
tioned paper  ("Lawrence,'*  $8,145.76),  the  administrators  of  his  estate,  of  whom  the 
president  of  this  bank  is  one,  will  pay  the  same.  In  similar  conditions  are  items  in 
"demand  loans,"  as  f<dh)ws.     Interest  fully  paid  on  all : 

William  Armstrong $8, 136.  (X) 

"C.  E.  Blumner  &  Co." : 2,929.05 

SamuelB.  Griffith 7,278.00 

J.  C.  Lucas  (with  collaterals) 12,  500. 00 

$30,843.05 

These  the  estate  will  pay. 

Add  Lawrence  item  above 8, 145. 76 

$38,  988. 81 
Mem. — It  is  expected  that  these  will  be  paid  within  ihe  next  3  months. 
Balances  with  other  banks,  including  reserve  agents,  have  been  verified  by  corre- 
8p<mdence. 

Interest  is  paid  on  some  130,000  deposits,  and  generally  to  banks. 
Average  reserve  for  the  last  30  days,  21%. 
Mem. — Reserve  to-day  (April  16)  is  31%. 

Bills  payable  (due  bills  and  certificates  of  deposit), 

Nat.  Bank  of  the  Republic,  Phila . .  $25,  000    On  bills  receivable $,32,  282.  70 

Corn  Exchange  Nat.  Bank,  Phila . .     20, 000              "            "        63,  .337. 96 

4th  St.  Nat.  Bank,  Phila 75, 000              "            "         99, 265. 39 

Central  Nat.  Bank,  Phila 25,000              "            "         30,000.00 

7th  Nat.  Bank,  Phila 25,000              "            "         34,710.74 

Third  Nat.  Bank,  Phila 30,  000  (Pd.  during  examination) .  76,  9:^.  44 

$200,000  $336,5^5.23 

Please  see  supplementary  sheet. 

W.  P.  Drew, 

Examiner, 
To  the  Comptroller  of  the  Currency,  , 

Washington,  D,  (f. 


Due  1886. 

Due  1887. 
Due  188t). 
Due  1889. 
Due  1887. 

Due  1887. 
Due  1888. 


East-dut  papei\ 

W.  H.  Harrison,  with  60  shs.  ($3,000)  "Duffy  Malt  Whiskey 

Co.,"  hopeful  for  most ,-■-;;.-; .V  4nA* ;!. 

4  notes,  "Thomas  1  )nrhani  &  Son,"  flour,  failed,  hopeful 3, 490. 00 

L.  T.  Young,  "order  John  Crawford,"  in  suit,  doubtful SAii'n/i 

"Coming," order  "Muqdiv,"  with  a tt'y,  hopeful /OO.OO 

J.  H. Haverley,  "order  C.  M.  Southwell,  balances  from," $:J,000, 

difference  paid,  doubtful  for  most '- "'oH^'TI 

"Steffe,"  with  atty,  good --  226.41 

"E.  K.  Marsh,"  $125;  Vogel,  $75;  "Turner,"  $150;    "Black- 

wood,"  $100;  good 750.UU 


76 


INVESTIGATION   OF   NATIONAL    BANKS. 


Exhibit  R. 


™ 


ll'i  M 


n  ft 


No.  of  bank,  2291. 
[Use  the  blank  lineH  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  ^Hhe  Keystone  National  Bank,''  af  rhilada.,  in  the  State  of 

Fenna,,  at  the  close  of  business  on  the  IS  day  of  May,  18S9. 

Dr.  Cr. 


BesouTces. 


1.  Loans  and  discounts  (see  schedule) 

2.  Overdrafts  (see  schedule) ,• 

3.  U.  S.  bonds  to  secure  circulation 

(par  value)  —  per  cents  —  per 
cents 

4.  17.  S.  1)onds  to  secure  deposits  (par 

value)  —  per  cents 

6.  U.  S.  bonds  on  hand  (par  value) 

—  \WY  cents ■ 

Stocks,   securities,   judgments, 
claims,  &c.  (see  schedule) 


6. 


7.  Due    from     approved     reserve 

agents  (see  seliedule 

8.  Due  from  other  national  banks 

9.  Due  from  State  and  private  banks 

and  bankers 

10.  Banking  house $ 

11.  Furuitur*'  and  fixtures. . .  $10, 000 


Dollars. 


1,376,800.74 
1,361.42 


50,000 


12.  Other  real  estate  and  mortgages 

ownwl  (see  schedule) _.  - . . 

13.  Current  expenses  aind  taxes  paid.. 

14.  Premium  on  bonds  for  circulation, 
$ ;   premium  on  other  U.  S. 


bonds.  $- 


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  for  clearing  house 

17.  Bills  of  other  banks 

18.  Fractional  paper  currency,  nickels, 

and  cents 

19.  Specie, viz: 

Gold  coin $47,000 

Gold  Treasury  certifi- 
cates   $ 

Gold     clearing-house 

certificates $.'>5,000 

Silver  dollars $  4,  600 

Silver    treasury    cer- 
tificates   $ 

Fractional  silver  coin.  $  6,400 


119, 485. 38 
75,  200. 41 

29, 616. 41 


10,000 


1, 087. 53 


3,999.32  i 


26, 401. 90 
100, 184.  21 
16,400 

647.44 


20. 
21. 


22. 


23. 


Lejjal-tender  notes 

United  States  certifi«'ate8  of  de- 
jMtsit  for  legal-tender  notes 
(sec.  5193,  Rev.  Stat) 

Redemption  fund  with  U.  S. 
Treasurer  (not  more  than  5  per 
cent  on  circulation) 

Due  from  U.  S.  Treasurer  (other 
than  5  per  cent  redemption 
fund 


Total 


113, 000 
156,000 


2,250 


2,082,440.76 


Liabilities. 


1.  Capital  stock  paid  in 


2. 
3. 

4. 


Surplus  fund 

Undivided  profits. 


Circulating  notes  re- 
cei\ed  from  Comp- 
troller   $ 

Less  am't  on  hand 
and  inTreasury  for 
redemption  or  in 
transit I 


6. 

7. 

8. 

9. 

10. 
11. 


12. 

13. 


14. 

15. 
16. 


17. 

18. 


State  bank  circulation  outstantl- 
ing 

Dividends  unpaid 


Individual  depf>sitj» 

subjeet  to  clieck. .  .$1.192,.'><T1.9f. 

Demand  certificates 
of  deposit $ 

Time  certificates  of 
deposit $ 

Certified  checks $ 

Cashier's  checks  out- 
standing, tellers 
due  bills $  157,  (K)3.  43 


United  States  deposits 

Deposits  of  U.  S.  disbursing  offi- 
cers  


Due  to  approved  reserve  agents 

(see  schedule) 

Due  to  otiier  national  banks 

Due  to  Stat<e  and  private  banks 
and  bankers 


Notes  and  bills  rediscounted. 
Bills  payable 


Total. 


Dollars. 


500, 000 

90,  (KH) 
G,  920. 47 


45,000 


11,048 


1,289,505.39 


1,497.47 
60, 541. 22 

17,922.21 


2,082,440.76 


I,  G.  "W.  Marsh,  cash,  of  "the  Keystone  National  Bank,  Philadelphia,  Penna.,"  do  solemnly  swear 
that  the  alK)ve  statement  is  true,  to  the  best  of  my  knowle«lge  and  belief,  and  that  the  .schedules on 
back  of  the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  state  of  the 
seTeral  matters  therein  contained. 

G.  W.  Marsh,  Cashier. 

Correct.    Attest:  „   ^  ^ 

G.  B.  Haines, 
D.  P.  S.  Nichols, 
Hemrt  Van  Beil, 

Direetort. 
Statb  of  Pennsylvania,  County  of  Philadelphia : 
Sworn  to  and  subscribed  before  me  this  22  daof  May,  1889. 
[SEAL.]  John  W.  Barron,  Notary  Publie. 

Must  be  acknowledged  betbre  an  officer  having  an  official  seal.    See  act  approved  Feb.  26, 1881. 


INVESTIGATION   OF   NATIONAL   BANKS. 


77 


[Fill  all  schedules,  writing  in  the  word  "  None  "  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 
Loans  and  discorintb. 


On  demand,  on  U.  S.  bonds - -  - 

u         "         "   stocks,  bonds,  and  other  personal  securities 

On  time,  paper  with  two  or  more  individual  or  firm  names 

"       "     single-name  ]»aper  (one  person  or  linn)  withoiit  other  security 

"       '*     secured  by  slocks,  bonds,  and  ot  her  personal  securities 

'•       "     on  mortgages  and  other  real  estate  security  sanctioned  by  .sec.  5137,  R.  S.  (see 

schedule)   

On  time,  on  mortgages  and  other  real  estate  security  not  sanctioned  by  sec.  5157,  R.  S.  (see 

schedule) 

Total 

Included  in  the  al>ove  are- 
Bad  debts,  as  deli ii«'d  in  seclion  5J04,  Rev.  Stat $6. 821.  14 

Other  suspended  and  overdue  paj>er 4,916, 18 

Liabilities  of  directors  (individual  aiid  firm)  as  payers 91, 000. 00 


$96, 600. 00 

1, 063, 491. 48 

186,  230. 10 

30,485.16 


1. 376, 806. 74 


Jjoans  exceeding  thcUmit  prescribed  by  secHnn  r,"JOO  of  the  Revised  Statutes,  including  amounts  in  excess 

qf  this  limit  due  from  State  and  private  banks  and  bankers. 


None. 


None. 


Stocks,  securities,  judgments,  claims,  etc. 

Balances  due  from  or  to  approved  reserve  agent*. 
From—  To— 


Trailesmens,'  N.  T 
Chase 


$75, 379. 73 
44, 105. 65 


$1, 497.47 


Checks  and  other  cash  item^. 


Checks  and  drafts  on  banks.  Sec,  in 

this  city '    $26,401.90 

Checks  and  drafts  on  other  banks  . . 


Average  reserve  and  interest.— Aversige^  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  27iVo  Pt>r  cent  of  deposits  and  bank  balances. 
The  highest  rate  of  interestjpaid  by  the  bank  is  3  per  cent. 

Overdrafts. 


None. 


Other  real  estate  and  mortgages  owned. 


Loans  and  discounts,  secured  by  mortgages  or  other  real  estate  security. 


Secured. : 

Standing  12  months  or  over 

4t                       ft                il-                          li 
ti                      O                ((                          t( 

"                       1                "                          "                     . 

Tpmnorarv ... ... 

Unsecured : 

Standing  12  months  or  over 

6       "             *'      

3        "             "       

Temporary 

$1, 361. 42 

[Sanctioned  by  sec.  5137,  U.  S.  Revised  Statutes.] 


Name  of  debtor. 


Deseriptiouofreal    ^j^^^'^" 
^»^^^-  value. 


Amount  of 

debt 

secured. 


Ai9<n>lt»fl  Date  when 


Stale  how 
acquired. 


78  INVESTIGATION  OF  NATIONAL  BANKS. 

Locmsand  diacovutu,  $rf^ired  by  tnortijagfn  or  other  rraleslate  *«r»'rt/»/~Coniimied. 
[Not  sanclioiiod  by  sec.  5137,  U.  S.  Kevisod  Statutes*.] 


INVESTIGATION    OF    NATIONAL    BANKS. 


79 


Name  of  debtor. 


Prsniption  of  real 
estate. 


Estimated 
a<-tnal 
value. 


Am.Hintof    Ainonntof   p.^,^  ^.^en 
debt  prior  lien, 

8ecured.  if  any. 


aequired. 


State  how 
ai-qiiirud. 


(Indorsed:)  Banks  will  not  till  ui>  ind»»r»ement.    No.  of  bank,  2291.    Rejwrt  of  the  Keystone  Nat'l 
Bank  of  Philadelphia.  Pa.,  May  13, 1889. 

By  the  Chairman  : 

Q.  The  experts  employed  by  the  eity  of  Philadelphia  are  reported  to 
have  reached  the  conelusion,  and  so  stated  to  that  municipal  body,  that 
this  bank  was  insolvent  on  the  1st  ofJanuary,  18S8.  I  desire  to  know 
whether  there  is  anything  in  these  reports,  either  the  reports  of  con- 
dition or  the  reports  of  the  examiners,  as  made  to  the  Department, 
which  indicate  any  such  condition  on  the  part  of  the  bank? — A.  There 
is  nothing  whatever. 

Q.  It  is  impossible  to  figure  from  the  statements  any  such  condition 
of  the  bank! — A.  It  is  entirely  impossible.  It  is  impossible  to  deduce 
any  impairment  of  capital  whatever  at  that  date. 

Q.  Since  the  bank  has  gone  into  the  hands  of  a  receiver,  have  any 
figures  reached  you  which  demonstrate  or  indicate  that  the  bank  was 
at  that  time  insolvent? — A.  The  receiver  himself  has  made  no  exami- 
nation, which  I  know  of,  with  reference  to  its  condition  prior  to  his 
taking  possession.  The  experts  appointed  by  the  Secretary  and  the 
committee  of  fifty  hav  e  gone  into  that  matter  and  have  rewritten  a  great 
many  accounts,  in  order  to  ascertain  its  condition  at  various  periods, 
reaching  back  as  far  as  January,  1888,  I  think. 

Q.  Has  their  report  been  comi^leted  ? — A.  My  impression  is  it  will  be 
completed  withiri  two  weeks.  They  have  reported,  of  course,  from  day 
to  day,  as  I  understand  it,  the  facts  demonstrated,  and  various  special 
objects  of  inquiry  have  been  completed. 

Q.  To  whom  have  those  been  made — to  the  Secietary  direct? — A. 
Yes,  sir. 

Q.  With  regard  to  the  examination  of  this  bank,  since  it  became 
known  that  it  was  in  difiiculty,  what  investigations  have  been  made? 
As  you  are  informed,  there  have  bt^en  several,  I  believe,  and  I  would 
like  tx)  get  those  classified  if  I  can. — A.  My  recollection  is  that  a  com- 
mittee was  first  appointed  by  the  committee  of  the  (common  council  of 
Philadelphia  to  investigate  as  to  the  amounts  due  the  city  of  Philadel- 
])hia  by  reasons  of  dei^osits  made  by  the  city  treasurer,  Mr.  Bardsley. 
Of  course  it  did  not  cover  all  the  transactions  of  the  bank,  but  only 
those  relating  to  the  interests  of  the  city.  Certain  experts  were  ap- 
pointed by  the  governor  of  Pennsylvania,  who  proceeded  to  investigate 
the  accounts  of  the  bank,  so  far  as  they  related  to  the  interest  of  the 
Commonwealth  of  Pennsylvania.  Subsequently  the  Secretary  of  the 
Treasury  directed  me  to  ask  the  mayor  to  select  ccirtain  exi)erts  to  pro- 
ceed to  make  an  examination  of  the  books  of  the  bank,  the  exi)ense  to 
be  i)aid  out  of  the  public  funds.  Those  experts  also  made  an  examina- 
tion of  the  aliairs  of  the  bank. 

Q.  So  far  as  that  examination  was  concerned,  was  it  in  reference  to 


any  particular  accounis,  ov  was  it  n^garding  the  gt^ieral  accounts  of  the 
bank?— A.  My  recollection  was  that  this  hist  examination  was  quite 
general.  The  most  comph'te  and  tliorcmgli  examination  has  been  made 
by  the  ioint  committee  composetl  of  four  experts  appointed  by  the  com- 
mittee,* of  whi<*h  Mr.  Reeves,  I  think,  was  chairman,  an<l  tVmr  or  five 
clerks  detailed  from  the  Treasury  Department,  under  the  tlircM'tion  of 
A.  K.  Barrett,  representing  the  Department.  They  have  been  engaged 
in  that  examination  for  more  than  six  months,  covering,  1  tiiink,  'rfie 
services  of  five  ex])erts,  i'ncluding  Mr.  Barrett,  from  the  Department, 
and  four  from  the  city  of  Pliihulel])hia,  making  eight  or  nine  in  all. 

Q.  That  was  all  under  the  direction  of  Mr.  Barrett?— A.  This  last 
examination  was  under  the  direction  of  Mr.  Barrett. 

Q.  Where  are  the  books  and  vouchers  of  the  Keystone  Bank? — A. 
They  are  at  the  receiver's  ofiice  in  the  Federal  building  in  Philadeli)hia. 

Q.  Was  there  or  not  an  investigation  by  your  Deiiartment  preceding 
the  appointment  of  a  receiver?— A.  No  investigation  as  to  the  special 
facts  developed  by  the  receiver's  examination  during  their  possession 
of  the  assets  of  the  bank  has  been  made. 

Q.  Who  were  the  experts  who  went  there  first? — A.  The  committee 
of  the  city  council,  I  believe,  employed  experts  in  the  first  place. 

A.  Yes,  sir;  I  may  be  at  fault  about  some  of  this  matter,  as  I  speak 
from  recollection. 

Q.  Coming  down  t;0  the  third  examination,  which  waw  made  by  the 
experts,  at  the  suggestion  of  the  mayor,  who  were  the  experts  in  that 
examination? — A.  LawiHMice  E.  Brown  and  Taylor  Fauiice. 

Q.  Were  they  sejit  from  the  Treasury  Department,  or  were  they 
Philadelphia  experts?— iV.  They  were  Philadelphia  experts. 

Q.  Will  you  tell  us  the  date  when  your  attention  was  first  directed 
to  the  fact  that  the  Keystone  Bank  of  Philadelphia  was  in  difficulty  ? — 
A.  Well,  the  word  difficulty  is  a  little  general.  It  had  been  the  subject 
of  some  criticism,  of  course,  for  some  years,  at  least  a  year  or  two,  not 
that  any  impairment  of  ca})ital  took  idace,  so  far  as  I  know  of. 

Q.  I  will  modify  the  (piestion.  When  did  you  go  into  ofldce? — A. 
May  1,1889. 

Q.  How  soon  after  you  went  into  office  was  your  attention  directed 
to  the  condition  of  the  Keystone  Bank  and  to  the  criticisms  upon  its 
management? — A.  I  w^ould  like  to  say  in  that  connection  that  almost 
every  bank  develops  something  which  calls  forth  a  letter  of  criticism. 
Nine  banks  out  often,  or  at  least  a  large  i^ercentage  of  them,  are  criti- 
cised to  some  extent.  The  first  report  made  by  an  examiner  after  I 
came  into  office  was  on  the  10th  of  October,  1889.  That  report  does 
not  seem  to  have  come  to  my  attention  personally,  but  the  letter  was 
written  by  J.  D.  Abrahams,  deputy  comptroller,  from  my  office. 
There  were  two  items  of  criticism  in  that  report. 

Q.  That  w as  the  first  criticism  after  you  went  into  office ? — A.  Yes, 
sir.    It  was  November  8,  1889. 

Q.  What  was  the  criticism  made  at  that  time? — A.  I  will  leave  you 
the  letter.  It  calls  attention  to  the  section  of  the  Revised  Statutes 
which  was  violated,  and  shows  that  John  Wanamaker  had  paper  to 
the  amount  of  $59,500,  and  John  Wanamaker,  by  H.  S.  Jones,  had 
paper  to  the  amount  of  $50,000,  the  total  being  $109,500.  Granville  B. 
Haines  &  Co.  had  paper  to  the  amount  of  $5(>,600.  The  lawful  money 
reserves  at  the  time  Avere  $17,588.04,  less  than  the  legal  leipiiiement. 

Q.  Was  Mr.  Jolin  Wanamaker  an  officer  or  director  of  the  bank? — 
A.  No. 


.■:.-! 


Ubi 


J 


II 


80 


INVESTIGATION   OF   NATIONAL   BANKS. 


Q.  Was  Granville  B.  Haines  an  officer!— A.  At  that  time  he  was 
president  of  the  bank. 

Q.  Have  you  the  report,  or  a  copy  of  it,  to  which  that  criticism  was 
addressed  ! — A.  Yes,  sir,  it  is  here. 

By  Mr.  SrEBRY : 
Q.  Was  Mr.  Wanamaker  a  stockhokler  of  the  bank  at  that  time? — 
A.  The  last  report  of  the  stockholders  made  t^  the  office,  so  far  as  I 
am  now  advised,  does  not  show  that  he  was  a  stockholder  at  that  time. 

By  the  Chairman  : 

Q.  What  is  the  date  of  that  report!— A.  July  3, 1888. 

Q.  Is  there  any  report  of  the  stockholders  of  the  bank  later  than 
July,  1888  ?— A.  I  directed  them  at  the  office  to  send  me  all,  and  this 
seems  tx)  be  the  latest  report. 

Q.  1  will  ask  you  to  make  further  examination  upon  that  question, 
and  state  whether  the  report  shows  the  names  of  stockholders — that 
is,  whether  there  ever  has  been  any  bank  statement  ^iviuj*-  the  list  of 
stockholders  later  than  the  one  you  ])roduced  of  January,  1888.  Now, 
please  state  whether  this  examiner's  report  of  October,  1889,  came  to 
your  personal  attention  prior  to  the  failure  of  the  bank? — A.  I  have  no 
recollection  of  seeing  it.  It  was  treated  by  Mr.  Abrahams,  my  deputy, 
at  that  time.  It  was  while  I  was  engaged  in  preparing  my  annual  re- 
port, and  he  signed  all  the  correspondence  at  that  time. 

Q.  Coming  back  to  the  question  which  led  up  t<>  this  letter,  when 
was  your  attention  personally  called  first  to  the  condition  of  this  bank 
and  the  criticisms  upon  its  condition? — A.  It  would  be  impossible  for 
me  to  fix  that.  I  can  not  tell  how  early  I  did  give  my  personal  atten- 
tion to  the  matter,  except  as  it  appears  by  the  official  correspondence. 

Q.  Taking  that  as  your  guide,  what  would  you  say  it  was,  because 
this  appears  to  be  the  act  of  Mr.  Abrahams  f — A.  The  earliest  date  when 
I  canremeniber  having  had  my  attention  called  to  the  bank  w  as  cfn  the 
28thof  July,  w^hen  I  w^rote  a  letter  to  G.  W.  Marsh,  president,  in  reference 
to  a  report  of  Examiner  Drew  for  July  3,  1890.  . 

Q.  Prior  to  that  time  had  there  come  to  your  knowledge  any  facts  at 
all  which  related  to  the  condition  of  this  Ininkf — A.  I  can  not  say  that 
I  remember  when  exactly,  but  I  have  no  recollection  prior  to  that  date. 

Q.  Does  your  recollection  serve  you  in  that  respect,  or  do  the  records 
of  your  office  show  that  your  attention  had  not  been  called  to  the  Key- 
stone Bank  as  being  in  a  critical  ('ondition  prior  to  that  time! — A. 
That  is  my  recollection.  I  can  not  carry  those  things  in  my  mind,  as  I 
have  nearly  4,000  banks  to  look  after. 

Q.  There  was  nothing  up  to  that  time  which  made  the  condition  of 
the  Keystone  Bank  exceptional? — A.  I  don't  remember  anything  ex- 
ceptional. In  looking  over  the  corresi)ondence  there  was  the  ordinary 
criticism,  and  that  would  be  visited  upon  sound  bar\ks  which  were  not 
well  managed,  but  nothing  to  excite  alarm. 

Q.  Was  any  part  of  the  correspondence  signed  by  you  personally,  or 
was  it  signed  by  the  deputy  <*.omptroller,  up  to  that  date?  You  say  the 
criticism  is  such  as  would  be  made  upon  any  good  bank  that  was  not 
well  managed! — A.  If  you  wait  a  moment  I  will  see  how  many  letters 
I  did  sign  in  reference  to  the  transaction  of  the  bank  ])rior  to  that  time. 

The  first  letter  seems  to  be  addressed  to  the  bank  by  me  on  .fune 
4,  1889,  and  it  simply  refers  to  an  informality  in  the  jurat  attached  to 
the  report  of  condition. 

The  next  letter  was  dated  June  4, 1889,  in  which  the  attention  of  the 
bank  was  called  to  the  item  of  deposits  entered  on  the  face  of  the 


INVESTIGATION   OF   NATIONAL   BANKS. 


81 


report,  $1,289,505.39,  while  the  schedule  showed  the  amount  was 
$1,349,505.39. 

Q.  A  difference  of  just  $00,000 !--A.  Yes,  sir;  and  the  report  was 
returned  for  correction. 

Q.  What  was  the  date  of  that  report!— A.  May  13,  1889. 

Q.  Have  you  got  that  letter,  alluding  to  the  amount  of  deposits, 
which  was  returned  for  correction! — A.  Yes,  sir. 

Q.  Then  it  is  not  a  corrected  report!— A.  Yes,  sir;  this  is  a  corrected 
report.  While  the  schedule  showed  the  amount  was  $1,349,505.39,  it 
was  returned,  and  they  returned  this  letter  in  wliich  they  explain  it. 
They  say  the  individual  deposits  subject  to  check  were  $1,193,5.09.90. 
The  cash  checks  outstanding  were  $157,003.43,  making  a  total  of  $1,349,- 
505.39.  This  is  the  letter  in  which  he  says,  '*  I  do  not  see  how  I  made 
the  blunder.'^    The  trouble  is  in  reference  to  the  footings. 

Q.  It  is  $60,(M)0  out  of  the  way— that  is,  they  didn't  foot  the  right 
amount. 

The  Witness  (after  tiguriug).  Yes,  $60,000  difterence  that  I  can  not 
explain. 

Q.  Did  you  send  back  to  be  corrected  the  report  with  your  letter?— 
A.  No;  I  asked  them  to  forward  the  corrected  schedule,  and  they  are 
corrected  in  this  report. 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  4,  1889. 
Mr.  G.  W.  Marsh, 

Cashier  Eeyiftoue  SutiouaJ  Bank,  Philadelphia,  Pa.: 

Sir:  In  your  report  of  condition  for  May  13,  188iK  the  item  of  "Deposits"  i8  en- 
tered on  the  face  of  the  same  at  $1,280,505.39.  while  the  schedule  shows  an  amount  of 
$1,349,545.39. 

You  are  respectfully  re<| nested  to  forward  a  correct  schedule  of  the  items  compos- 
ing the  amouut,  hy  first  mail,  and  also  to  see  that  future  reports  are  correct  in  this 
respect. 

Respectfully,  yours, 

E.  S.  Lacey,  ComptroUer. 

Q.  In  resjionse  to  that  letter  you  received  a  letter  of  which  that  is  a 
copy  ?— A.  I  received  a  letter  dated  Friday,  June  5, 1889.  It  shows  de- 
posits as  follows:  Individual  deposits  subject  to  check.  $1,192,501.90; 
cashier's  checks  outstanding,  $157,003.42. '  Total,  $1,349,505.39. 

Q.  The  ettect  of  that  correction  w^ould  be  to  throw^  this  out  of  balance 
$60,000 f — A.  I  suppose  so;  assuming  the  footings  are  correct. 

Q.  Then,  by  making  the  correction  reported  by  that  letter,  there 
would  be  $60,000  more  liabilities  and  no  more  assets?— A.  That  would 
be  the  result  of  it. 

[Granville  B.  Haines,  Prest. ;  Henry  Van  Bell,  Vide-Prest. ;  G.  W^  Marsh,  Cashier.] 

Keystonk  National  Bank, 
1326  AND  1328  Chkstnut  St.,  Oppositk  the  U.  S.  Mint, 

Philadelphia,  June  5,  ISSO. 
Dear  Sir:  Tlie  dei)osits  were  as  follows: 

Iu(i.  Dep.  suh ject  to  check 1, 192,  .501 .  06 

Cash'r  checks  outstandino; 157^  003. 43 

Total 1,349,505.39 

I  don't  see  how  I  made  the  hluinler. 
V^ery  resp'f  y, 

G.  W.  Marsh,  Cr, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency. 
3792 6 


:.'  ijwmiiiUMi 


i:  i 


9t 


■  'n 


11 

It;  !' 


■  ■        ..'"^ 


82  INVESTIGATION   OF   NATIONAL    BANKS. 

O.  No  other  correction  was  mswle  oftliat  report?— A.  I  will  see.  Tbe 
next  letter  I  addressed  to  tlie  Keystone  National  Bank  was  on  August 
U,  1889,  calling-  attention  to  the  fact  that  proof  of  publication  ot  report 
of  July  12, 1880,  had  not  been  received. 

Q.  So  lUr  as  this  coiTespondence  goes,  there  was  no  further  correction 
on  the  face  of  the  May  report!— A.  I  don't  see  any. 

(For  this  report  see  Exhibit  R,  ante.)  ,      ^      .        xt  i.-       i 

The  next  communication  addressed  by  me  to  the  Keystone  National 
Bank  was  on  January  6, 1890,  in  which  I  called  attention  to  the  fact 
that  proof  of  publicatioii  of  the  report  of  December  11  had  not  been 

Treasury  Department, 
Office  of  Comptrolt^kr  of  the  Currency, 

Washingtotif  August  14ih,  18S9. 

'cashier  Keystone  National  Bank,  Philadelphia,  Pennsylvania: 
Sir-  Proof  of  publication  of  the  report  of  the  condition  of  your  bank  aH  made  to 
this  office  at  the  close  of  business  on  Friday  the  12th  day  of  July,  1889,  has  not  been 

^To'urattention  is  particularly  called  to  the  re.]  u  ire  men  ts  of  the  law  with  regard 
to  forwarding  reports,  and  to  the  penalty  for  ftvilure.  (See  Section  5211  and  Section 
5213,  U.  S.  Kevist'd  Statutes.) 

Respectfully  yours,  ^   ^  ^^^^^^ 

Cor)H)troUei'. 

Q.  Can  vou  state  whether  those  proofs  of  publication  were  ever  fur- 
nished?—A.  I  could  not.  The  next  communication  by  me  was  dated 
April  3,  18(X),  saying  that  upon  examination  of  report  of  condition  Feb- 
ruary 28,  1890,  it  was  found  that  under  the  head  of  specie,  clearing- 
house certificates,  $30,000  had  been  entered,  which  error  was  afterwards 

corrected. 

Treasury  Department, 

Office  of  Comptrolj.er  of  the  Currency. 

Washington,  D.  C,  Apnl  S,  1890. 

Mr.  John  Hayes,  ,., ..  ^  ,  »       n 

Cashier,  Keystone  National  Bank,  Philadelphia,  Pa.: 

Sir  :  Upon  examination  of  your  report  of  condition  on  February  28,  1890,  it  is 
found  that  under  the  head  of  specie,  you  enter  "gold  clearing-house  certihcates, 

$30  000 

Vou  are  respectfully  requested  to  inform  me  at  your  earliest  convenience  whether 
this  amount  represents  gold  certificates  issued  by  your  clearing  house,  or  gold  cer- 
tificates issued  by  the  U.  S.  Treasury  payable  to  order  and  used  for  clearing-house 

^YnTase  the  amount  includes  certificates  of  both  these  classes,  please  j^ive  the 
amount  of  eath  class  held  at  date  of  report,  and  see  that  this  information  is  given 

in  future  report*. 

KeHpectfnlly  yours,  ^  ^  ^^^^^^ 

Comptroller, 

The  next  communication  addressed  by  me  is  dated  April  28,  1890, 
and  states  that  proof  of  publication  of  the  report  of  February  28,  1890, 
had  not  been  received. 

Treasury  Department, 
Office  of  Comptroller-  of  the  Currency, 

Washington,  April  28,  1890, 

Mr.  John  Hayes, 

Cashier,  Keystone  Nat.  Bank,  Philadelphia,  Penna.: 
Sir:  Proof  of  publication  of  the  report  of  condition  of  your  bank,  as  made  to  this 
office  at  the  close  of  business  on  Friday,  the  28th  day  of  February,  1890,  has  not  been 
received. 


I 


INVESTIGATION    OF    NATIONAL    BANKS. 


83 


Your  attention  is  particularly  willed  to  the  rc<iiiircinents  of  the  law  with  ie<'^ard  to 
forwarding  reports,  and  to  the  penalty  for  failure.  (See  section  5211  and  ^section 
5213,  U.  8.  Kevised  Statutes.) 

KespecttuUy,  yours,  '    • 

E.  S.  Lacey, 

Comptroller. 

The  next  communication  was  made  May  20,  1890,  and  again  calls  at- 
tention to  the  fact  that  proof  of  publication  had  not  been  received,  and 
callsattention  also  to  the  penalty  for  failure  to  publish  the  reports. 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

,,      ,  „  Washington,  May  20,  1890. 

Mr.  John  Hayes,  ./      7       ./      > 

Cashier,  Keystone  Nat.  Bank,  Philadelphia,  Penna.: 
.,  8ir:  Proof  of  puldicatiou  of  the  report  of  the  condition  of  your  bank,  as  made  to 
this  office  at  the  close  of  business  on  Friday  the  28th  day  of  February,  1890,  has  not 
l>e»'n  received.  .  >  > 

Your  attention  is  particularly  called  to  the  requirements  of  the  1:iav  with  re^^ard  to 

^'.^'Tr  J^^^P^""*!'  S?"!  *^  *?^  penalty  for  failure.     (See  section  5211  and  section 
a21d,  u.  S.  Kevised  Statutes.) 

Respectfully,  yours,  *  E.  S.  Lacey, 

Comptroller. 

Q.  Had  they  failed  to  file  the  reports?— A.  They  had  made  reports, 
but  they  are  required  to  show  proof  of  publication  of  the  reports. 

Ihe  next  communication  was  June  4,  1890,  in  which  attention  was 
called  to  the  fact  that  an  item  of  |2,000  which  was  carried  as  premium 
on  Lnited  States  bonds  in  the  report  of  condition  of  May  11  was  exces- 
sive, and  that  $250  of  it  should  be  charged  off. 

Treasury  Department. 
Office  of  Comptroller  of  the  Cuhjiency 
Mr.  G.  W.  Marsh,  Washington,  D.  C,  June  4,  1890, 

President  Keystone  National  Bank,  Philadelphia,  Pa.: 
Sir  :  Upon  examination  of  your  report  of  condition  on  Mav  17  ult   it  is  found  f  hi  t 
sectUdmiM^m^^^^^^  ^'""  "^'^'^  ^"'"^  '''  »"^"^">^  «n  United  States  bonds  to 

MfTllh  ;;"V^'V'*  ''?^'^^''LI'X  ''^''^'''^  ^^^  market  value  of  the  premium  on  these  bonds 
?U>n':^t1r^ne^t'S!Sl''  ^"^^  '"^^  ^^^^^«  ^^«^^^^  ^^  ^^^^^^  ^^  ^-^^  ttdeci^^t 
Respectfully,  yours,  g.  S.  Lacey, 

Comptroller. 

hv^fbtV^o"?^^  '''  ^  *^?  ^^t^^''  ''^  ^'^^^  -^'  ^^^^^  ^^^^^i<^h  I'^fei'^  to  criticism 
by  the  bank  examiner  m  the  report  of  July  3, 1890 : 

Hon.  E.  S.  Lacey,  Philadelphia,  July  i%  1890, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

iVrS  J^yS^rnf  ?i' •"'''•f '''°  ^''''°  ^^'"'''  ''^'^  ^^^«  ^«  5^^*  ^^««n  sent  to  The  Keu.tone 
ZZ^    J    ^^""j  ^^  this  city,  on  my  report  of  its  condition  mailed  to  vou  on  the  1«fb 

S:'alZ  a^TsinftJi^  r  r.*  *V*  V*  ^f  ^^^^^-^^^  ^-  longer  Ihan^^ay're  un'avold^- 
exceksTve  loan  bv  the  b^nk  to  /r'^?/  ^  ^^^^  *V*  ^^'  vvomised  reduction  of  the 
the  condition  omrba^lkt;^'/^^^^^  ^^a^ama^er  has  not  been  effected.  Meanwhile 
coj.^^to  bJ^^^^  the  Clearing  house, 

Sve  methods  ^f  "f  ^«?»Pe^'!tion  to  compel  the  bank  to  return  to  safe  aSd  conserva 
parS^^^^^^^^^  ^^*^«"*  ^yrther  delay,  will  avail  much,"and^rbe 

the  same  end^^         ^^"'^  ^'^  ^^^^  clearing-house  committee  in  their  eltbrt«  towards 
Very  respectfully, 

^  W.  P.  Drew, 
Nat.  Bank  Examiner. 


iito 


I, 
i 


: 


li 


»i 


m 


84 


INVESTIGATION   OF    NATIONAI-    BANKS. 


liner  s  re- 


()   You  have  the  report  here  of  the  condition  and  tlic  cxanii 
noli  dudngtUo  period  that  yon  have  been  in  office,  and  which  period 
is  covered  by  this  correspondence?— A.  Yes.sm  ti.o  i.nnk  was 

Q.  Is  the/e  anything  in  those  reports  'i^^^f  ^^''S  *  f*  ^/f  J^  ^'tn 
in  .lifficnltv  or  showing  any  embarrassment?— A.  ihere  i><  noi  ung  in 
anv  of  he  reports  prior  to  January,  1891,  that  indicates  any  unpair- 
mSit  of  t4  ''M.ital  o?  the  bank,  or  anything  looking  towards  "^olvew^ 

O  I  will  put  in  this  report  prior  to  that  one.  This  letter  dated  July 
2H,  l,S!Mr.efers  to  the  examiner's  report l-A.  Yes,  sir;  to  the  report  of 

^'  *  Exhibit  S. 

Ko.  of  Bank,  2291. 
[Use  tJin  l.lank  limss  if  necessary,  but  do  not  erase  or  clianKO  any  of  the  print«Ml  ilen.s.] 

Report  of  the  condition  of  -  The  Keystone  Xaiional  1^,1:^  at  ™'«^-^^'"  ''-  '^'«'^  '^ 
Penna.,  at  the  close  of  himneas  on  the  12  day  of  July,  hSSJ.  ^^ 


Db. 


Resources. 


1 .  Loans  anddiscounts  (see  sojiedulo) . 

2.  Overdrafts  (seo  scheiluh')  ......-• 

3    V.  S.  bonds  to  secure  circulation 

(par  value)  —  per  cents  4"o  per 

(^ents .-  ■  - ; 

4.  U.S.  bonds  to  secure  deposits  (par 

value)  —  per  cents 

5.  V.  S.  bonds  on  band  (par  value)  — 

]>er  cents •  ■  • 

6.  Stocks,     securities,     .juuj;nients, 

claims,  &c.  (see  scbedule.) 


Dollars. 


1,351,772.21 
671. 16 


50,000 


Liabilities. 


7.  Due  from  approved  reserve  agents 

(see  schedule) • • 

8.  Due  from  other  national  banks  . . . 

9.  Due  from  State  and  private  banks 

and  bankers 

1(1.  Bankini:  house 

11.  Furniture  and  tlxtures 

12.  Other  real  estate  and  mortgages 

owned  (see  schedule) ;  ■  •  ■ 

13.  Corrent  expenses  and  taxes  paia.- 

14.  Premium  on  bonds  for  circulation 

$              premium  on  other  h .  S. 
bonds,  $ 


15.  Checks  and  otlier  cash  items  (see 

schedule) 

16.  Exchanges  for  clearing  house 

17.  Bills  of  other  banks ;  -  ■ - 

18.  Fractional  paper— cunency.  nick- 

els, and  cents 

19.  Specie,  viz: 

Gold  coin *    3^.  ''^'" 

Gold  Treasury   certifl- 

cates * 

Gold  clearing-house  oer- 

titicates ^  ^"^^'2  « 

Silver  dollars $    13, 600 

Silver  Treasury  certifl- 

Fractional  silver  coin ...  $     9, 400 


128, 513. 25 
93, 621. 54 

24, 928.  46 

10,000 

5, 218.  49 

3, 999. 32 


30,  747. 40 
135,720.69 
17,  500 

1,  563. 84 


1.  Capital  stock  paid  in. 

2.  Surplus  fund 

3.  Undivided  protits 

4.  Circulating    notes 

received    from 

Comptndler $ 

Less  am't  on  hand 
and  in  Trea.sury 
for  redemption  or 
in  transit $ 


Dollars. 


500,000 

90,000 
15, 145. 40 


5.  State  bank  circulati«ni  ontstand 

ing 

6.  Dividends  unpaid 


7.  Individual    depos- 

its     subject     to 

check $1,340,003.88 

8.  Demand        cert  id- 

eates of  deposit  ..$ 

9.  Time  certificates  of. 

deposit $ 

10.  Certitied  checks  ..$ 

11.  Cashier's      checks 

outstanding;  t«'ll- 

ers' due  bills $117,708.09 


45,000 


720.50 


;l,457,7n.97 


20.  Legal-tender  notes -  - • - 

21.  United  Statescertiflcates  of  deposit 

for  legal-tender  not«8  (Sec.  5193, 
Rev.  Stat.) ■■-•:-.--   -  ■  •  •  -•• 

22.  Redemption     fund    witli    U.    ». 

Treasurer  (not  more  than  5  per 
cent  on  circulation) 

23.  Due  from  U.  S.  Treasurer  (other 

than     5    per    cent     redemption 
fund) 


188,  000 
147,  000 


12.  United  States  deposits -  -  -  - 

13.  Deposits  of  U.  S.  disbursing  offi- 

cers   


2,250 


14.  Due  to  approved  reserve  agents 

(see  schedule) r^  ocr.  n? 

15   Due  to  other  national  banks 54, 980. 07 

16.  Due  to  State  and  private  banks  \ 

and  bankers ;     27,942.42 

17.  Xotes  and  bills  rediscounted  . . . 

18.  Bills  payable 


Total . . 


2,191,506.36 


Total 


2,19L506.36 


:^~^^ujo^t.^«"^^^^^^^^^^^^^ 


the  above 


4' 


INVESTIGATION    OF    NATIONAL    BANKS. 


85 


of  the  report  hav»>  Ikjcu  carefully  tilled  out  and  fully  and  correctly  represent  the  true  st^tc  of  the 
several  matters  therein  c<»ntained. 


Correct.    Attest : 


State  of  Pennsylvania,  County  of  Philadelphia. 
Sworn  to  and  subscribed  liefore  me  this  19th  day  of  July,  1889 


G.  W.  Marsh,  Cashier. 

G.  B.  Haines, 
J.  B.  Jackson, 
Samuel  Lucas, 

D^irectors. 


[^^■^^■]  John  W.  Barron,  Notary  Public. 

Must  be  acknowledged  before  an  otticer  hiiving  an  otticial  seal.— See  act  approved  Feb.  26, 1881. 
[Fill  all  sche^lules,  writing  in  the  word  'none  "  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 

Loam  and  ditcounts. 

■$ 


On  demand,  on  U.  S.  bonds  

"     .    "  "  stocks,  bonds,  and  other  i»ersonai  securities  ....**.*.'.  *.'. 

Ou  time,  papers  with  two  or  more  individual  or  tirm  names  . 

"      •'      single-named  paper  (one  person  or  linu)  without  other  secnritv V'  m'  fi?2 

"      "      secured  by  stocks,  bonds,  and  other  per.soual  securities  |     79'  \it 

"s,-hedule?  "'^'"*»''^'*'*'  ^"^^  ^^^'^"^  ^^^  ^«*^t*^  security  sanctioned  by  Sec!  5137,  r!  S.'  (s^ 

On  time,  on  mortgages  and  other  real  estate  security  notVanctionedbv  Sec!  '5137  *  R  S "  (see 
.sche<lu]e) "^  '  ^ 


$      54, 554 
. .  .$1, 030, 831. 03 
18 


Tnt-Jil 

Included  in  the  above  are — 

Bad  debts,  as  defined  in  Section  5204,  Rev.  Stat . . 
Other  suspended  and  overdue  papers 


.-..$1,35L772.21 


Liabilities  of  directors  (indivicfualand  firm")  as  payei-s! !!!!!!!!!!!!!!!!!!  !$lll',   ^*"  ^^ 


$    5,618.16 
184. 
400 


Loans  exceeding  the  limit  preseribed  byjection  5200  of  the  Revised  Statutes,  including  amounU  in  exceu  of 

thus  limit  due  from  imitate  and  private  banks  and  bankers. 


None. 
None. 


Stocks,  securities,  judgments,  claims,  <£c. 
Balances  due  from  or  to  approved  reserve  agents. 


From- 


To- 


Tradesmen's . 
Chase  Nat . . . 


100,  412. 92 
28,100.33 


Checks  and  other  cash  items. 

Checks  and  drafts  on  banks,  cfcc.  in  this  clt\ qa  ?.,  4a 

Checks  and  drafts  on  otlier  banks '...  ^«,  747.  40 


^verage  reserve  and  iriterest.- Ay  tirade  reserve  for  last  30  days  (in  bank  and  with  reserve 
28£«  per  cent,  of  deposits  and  bank  balances.     The  highest  rate  of  inteS  pS  by  thll^^ 


agents)  was 
bank  is  3  per 


Overdrafts. 


Secured : 

Standing  12  months  or  over. 
6       •'  •' 

3       "  "       " 

1  ««  IC  ' 

TemiK)rary 


li 

(( 


Unsecured : 

Standing  12  months  or  over 

"           3        "             «' 

«»                   I            W                      IC 

Temporary !!!!!! 

67L16 

None. 

None. 
None. 


Other  real  estate  and  mortgages  oumed. 

Loans  and  discounts,  secured  by  mortgages  or  other  real  estate  security. 

(Sanctioned  by  sec.  5137,  U.  S.  Revised  Statutes.] 

[Not  .sanctione<l  by  sec.  5137,  U.  S.  Revised  Statutes.] 


i^inkMi?a^l;L:^,;;::^:!i;,i;^^^1SS^^^  ^-  «^«-^.  ^291.    Report  of  theKeystx>neNat'l 


f 


OK 


86 


INVESTIGATION    OF   NATIONAL    BANKS. 


Exhibit  T. 

No.  of  bank,  2291. 

[Use  the  l»lank  Hues  if  necessary,  but  do  not  eraae  or  change  any  of  the  printed  items.l 

Report  of  the  condUion  of  '' The  Keystone  Natioiial  Jiank;' at  ^I^^^^^^^  the  .State  of 


renna.f  at  the  close  of  business  on  the  30  day  of  Sept.,  1SS9. 


Db. 


Cb. 


Resources. 


Dollars. 


1.  Loans  and  discounts  (see  schedule).  1,379, 006.55  i 

2.  Overdrafts  (see  schedurt^) ]      1, 503, 72  ; 

3.  U.  S.  bonds  to  secure  «inulation 

(par  value)  —  per  cents,  ■    50,000 

per  cents 

4.  U.S.  bonds  to  secure  deposits  (par 

value)  —  per  cents I 

5.  U.  S.  bonds  on  liand  (par  value)  — 


Liabilities. 


Dollars. 


500,000 


1.  Capital  stock  paid  in 

2.  Surplus  fund ;      ^^^^^  ,^ 

3.  Undivi<led  protits ■      -«'  *>-^l-  ^^ 


per  cents 

6.  Stocks,  securities,  .iud^ments, 

claims,  etc.  (see  schedule) 

7.  Due  from  approved  reserve  agents 

(see  schedule) I    80, 7 18. 29   | 

8.  Due  from  other  national  banks Iffi,  821 

9.  Due  from  State  and  private  banks  i  |! 

andbankers i    45,351.40   j 

10.  liankinji  lioHse. $  || 

n.  Furniture  and  fixtures $ 


4 .  Circulat  lug  notes  re- 
ceived from  Comp- 
troller   ♦ 

Less  am't  on  hand 
and  in  Treasury 
for  redemption  t>r 
in  transit $ 


5.  State  bank  circulation  outstand- 
ing  , 


45, 000 


12.  Other  real  estate  and  mortgages 

owned  (see  schedule) 

13.  Current  exjienseH  and  taxes  jiaid  . . 

14.  rremiiunon  bonds  for  circuhition, 

!^             .    Premunu  on  otlier  U. 
S.  bonds,  $  


10,000 
15, 373. 26 
3. 999. 32 


15.  Che<!ks  and  other  casli  items  (see  j 

•       scheilule) 7,949.54 

16.  Exchanges  for  clearing  house |  240,540.34 

17.  iJills  of  other  banks. .  - '      1, 500 

18.  Fractional paperrurreniy,  nickels, !  „„  q- 

and  cents I         282. 97 

19.  Specie,  viz- 

Gold  coin $11,000  , 

Gold    Treasury    certifi- 
cates   $ 

Gold  clearing-house  cer- 
tificates  $25,000 

Silver  dollars $<>.  000 

Silver  Treasury  certiti- 
cates $  ! 

Fractional  silver  coin..     $4,000 

56, 000 

20.  Legal-tender  notes 158. 000 

21.  Tnited  States  certificates  of  de- 

posit for  legal-tendur  notes  (sec. 
5193,  Rev.  Stat.) i 

22.  Redemption  fund  with  U.  S.  Treas-  | 

urer  (not  nmre  than  5  per  cent 

on  circulation) 2, 250 

23.  Due  from  U.  S.  Treasurer  (other  j 

thanSpercent  redemption  fund). 


0.  Dividends  unpaid 

7.  Individual  deposits 

subject  to  check..  $l.35:»,509.20 

8.  Demand  certificates 

of  deposit $ 

9.  Time  certificates  of 

depo.sits $ 

10.  Certified  checks $ 

11.  Cashiers   checks 

outstanding $  108,618.31 


507.50 


12.  United  States  deposits 

13.  Deposits  of  U.  S.  disbursing  offi- 

cers   


1,462,127.51 


14.  Due  to  approvcil  reserve  agents 

(see  sche<lule) 

15.  Due  t<»ot her  natitmal  banks t      74,660.05 

16.  l>ue  to  State  and  ])rivate  banks  ,        ^ 

and  bankers 15,  9<0.  -3 


17.  Notes  and  bills  rediscounted 

18.  Bills  payalde *, 


Total 2.210,296.45 


Total '2,216,296.45 


I  G.  W.  Marsh,  cjish.  of  the  Keystone  National  Bank    Unlada.,  IVnna    do  solemnly  swear  that  the 
above  statement  is  true  to  thebosl  of  my  knowledge  and  belief  an.l  that  the  schedules  on  back  o    tlie 
J^ort  have  been  carefully  filled  ..ut  and  fully  antl  correctly  represent  the  true  state  ot  the  several 
matters  therein  contained. 
•  Correct.-Attest:  ^^  ^  Marsh, 

Cashifr. 
J.  B.  Jackson, 
Hknky  Van  Beil, 
Louis  Dkeka, 

Direxitort. 

SrATVi  or  VKSySYLVKSl A,  Covntij  of  Philaddphia: 
Sworn  to  and  subscribed  b...ore  n.e  this  4  day  of  Octol>er,  1889.     ^^^^  ^^,    ^^^^^^^^    ^.^^^^^  ^^^^^.^ 

Must  be  acknowledge*!  iKjfore  an  officer  having  an  official  seal.    See  act  approved  Feb.  26,  1881. 


INVESTIGATION   OF   NATIONAL    BANKS. 


87 


(Fill  all  schedules,  writing  in  the  wonl    '  none"  wherever  no  aumunt  is  to  be  entered.] 

8CHEDITLE8. 

Loans  and  DiscounU. 

On  demand,  on  U.  S.  bonds * ^ 

'•  '*    stocks,  iKuids.  and  other  personal  securities $    56  104  00 

On  time,  paper  with  two  or  more  individual  or  firm  naines $  ggg'  goo  98 

"      "     single-name  paper  (one  person  or  firm)  without  other  security --.'.. $  343' 783  07 

"     "     secured  by  stocks,  bonds,  and  other  personal  securities '. .  $    go'  318  50 

"     ''     on  mortgages  and  other  real  estate  security  sanctionetl  by  sec.  513^  R.  S.  (see 
schedule.) « 

On  time,  on  mortgages  and  other  real-estate  securitv  not  sanctioned  liv  sec  5137  R   S 
(see  schedule) ' " '     '     '  ^ 


Total 


1,379,006.55 


Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat 

Other  siis]tended  and  overdue  paper 

Liabilities  of  directors  (individual  and  firm)  as  i 


i) as  payers. 


$      7,192.06 

$    10,698.89 

$    76,202.83 


Loans  exceeding  the  limit  prescribed  by  section  5200  of  the  Revised  .Statutes,  including  atnounts  in  ezcest 

of  tfas  limit  due  from  State  and  private  banks  and  bankers.     ' 


n 


None. 


None. 


From- 


StoeJcs,  securities,  judffment*,  claims,  etc. 

Balances  due  from  or  to  approved  reserve  agents. 

To— 


Tradesmen's  Nat'l,  N.  York. 
Chase, 


70,610.12 
10, 108. 17 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks! ... 


7.  949. 54 


«>-l^/^'!^^'■T'■'^^'*"^  mter«*«.-- Average  reserve  f.»r  last  30  days  (in  bank  and  with  reserve  agents)  was 
cent!  ^^'*'    '  "^  balances.    The  highest  rate  of  interest  paid  by  the  bank  is  3  per 


Overdrafts. 


Secured : 
Standing 

Temporary  .. 

12 
6 
3 
1 

months 

u 

or  over 

i. 

.i 

None. 


None. 
None. 


Unsecured : 

Standing  12  months  or  over. 
6 
"  3  ii        (i 


Temporary 


1,503.72 


Other  real  estute  and  mortgages  owned. 

Loans  and  discounts,  secured  by  mortgages  or  other  real-estate  security. 
[Sanctioned  by  .sec.  5137,  U.  S.  Revise<l  Statutes.] 

[Not  sanctioned  by  sec.  5137,  U.  S.  Kevisetl  Statutea.J 


Mh 


rtiM 


h  ' 


88 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   HANKS. 


81) 


Exhibit  U. 

Ko.  ol  bauk,2291. 

[Use  the  blanK  lines  if  nwessary,  Imt  do  not  erase  or  «liaiige  any  of  the  pnutetl  it^ins.] 

liepoi't  of  the  condition  of  "  The  Keifstone  Nationai  Bank,''  at  Philadelphia,  in  the  State 
'     of  I'enna.,  at'  the  close  of  hnsinesHy  on  the  11  daif  of  December,  1SS9. 

Ck. 


Dr 


IJesoiircca. 


IktUars. 


Liahilitios. 


1.  Loan8aud(li8C'0imt8(8W schedule)    1,:ir)6.714.b7 

2,  Overdrafts  (seeachedule) \      1, 544. 10 

'A.  U.  S.  houds  to  secure  eireiilatiou 

(par  value)  —  per  tents  —  per  , 

cents I     50,  000 

4.  r.  S.  bonds  to  secure  deposits  (par 

value)  —  per  cents 

5.  U.  S.  bonds  on  hand  (i>ar  value)  — 

])er  cents 

6.  Stocks,     securities,     .judgments, 

claims,  &c.  (see  schedule) 


1.  Capital  sto«k  paid  in. 


7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  l)ue  from  other  national  hanks 

9.  Due  from  State  and  private  banks 

and  bankers 

10.  Banking  house $ 

11.  Furniture  and  fixtures. . .  $10, 000 


2.  SurT>lus  fund 

'■i.  Undivided  profits. 


4.  (Mrculaling notes  re- 
ceived from  Comp- 
troller  $ 

Less  am't  on  hand 
and  in  Treasury 
for  redemption  or 
in  transit $ 


Dollars. 


500,000 

'D5, 000 
9,  007.  44 


12.  Other  real  estate  and  mortgages 

owned  (see  schedule) 

13.  Cnrrent  expenses  and  taxes  paid.. 

14.  Preuiium  on  bonds  foreinulatiou, 

$— — ;  premium  on  other  U.  8. 
bonds,  $        


131,  005.  76 
86,  .')21. 34 

24, 704. 44 

10,  000. 00 

5, 985. 38 

2, 999.  32 


5.  State  bank  circulation  outstand- 
ing   


6.  Dividends  unpaid. 


15.  Checks  and  other  cash  items  (see 

schedule) 40,943.02 

16.  Exthanges  for  clearing  house '  122, 523. 66 

17.  Bills  of  other  banks 12,  640 

18.  Fractional ]>apercuiTen<y.  nickels, 

and  cents 388.  77 

19.  Specie,  viz- 

Gold  coin  ♦  3,600 

(Jold  Treasury  certill- 
cates $ 

Gold  clearing-house  ecr- 
tificates $40,000 

Silver  dollars $16, 200 

Silver  Treasurv  certifi- 
cates  : $  1,400 

Fractional  silver  coin  ..  $  2,026 


7.  Individual  deposits 

subject  to  check . .  $1,284,369.60 

8.  Demand  certificates 

of  deposit $ 

0.  Time  certificates  of 
deposit $ 

10.  (Vrtitied  cheeks  ...  $ 

11.  Cashier's     cheeks 

«mtstanding $    75.050.13 


45, 000 


5,830 


1,359,419.73 


12.  I'nited  States  deposds 

13.  Deposits  of  T^.  S.  disbursing  of- 

ficers   


63, 226 


20.  Legal-tender  notes i  155 

21.  United  States  certitirates  of- de- 

posit for  legal-ten«ler  notes  (se*-. 
5193,  Rev.  Stat.) 

22.  Redemption  fund  with  V.  S.  Treas- 

urei-  (not  more  tlian  5  per  «'ent 

on  <irculation) 2, 250 

23.  Due  from  X^.  S.  Treasurer  (other 

than  5  percent reilemittion fund) 


14.  Due  to  approvc<l  re«erve  agents] 

(see  sclietlule) ' 

15.  Due  to  otlier  national  banks I      36, 651. 44 

16.  Due  to  State  and  private  banks 

and  bankers 


16,031.91 


17.  Notes  and  bills  rediseounted j 

18.  Bills  payable 


Total 2,066.446.52 


Total 


2,066,446.52 


I  G.W.  Marsh,  cashier  <.f  "The Kevstone  National  Bank.  Phila.,  Penna.,"  do  solemnly  swear  that 
the  above  statement  is  true,  to  the  best  of  mv  knowledgt;  and  belief,  and  that  the  schedules  on  back 
of  the  report  ha\'e  been  carefullv  tille«l  out  and  fully  and  correctly  represent  the  true  state  of  tlie  sev- 
eral matters  therein  contained. '  ^    ^  ^^^   ^^^,  .^^. 

Correct.    Atte.st:  G.  B.  Haines, 

Sam'l  Lucas,  ^ 

Hy.Van  Beii., 

Directora. 
State  of  Penna.,  County  of  Philadelphia : 

Sworn  to  and  subscribed  before  me  this  eighteenth  day  of  December,  1889. 

[yji^L]  JoH.N  W.  Barron,  Notarn  Public. 

Must  be  acknowledged  before  an  ofiicer  using  an  i>thcial  seal.    See  act  approved  Feb.  26, 1881. 


4 


[Fill  all  schedules,  writing  in  the  word  "None"  wherever  no  amount  is  to  be  entered.] 

SCHKDULES. 

Loans  and  discounts. 


On  demand,  on  U.  S.  bonds 

"        "  "   stocks,  bonds,  and  otlier  personal  securities , 

On  time,  paper  with  two  or  more  individual  or  firm  names 

"      "     single-name  paj)er  (one  person  or  firm)  without  other  security... ... 

secured  by  stocks,  bonds,  and  other  personal  securities  . 


on  mortgages  or  other  real-estate  security  (see  8<-hediile) . 


Total. 


$  60.984.22 
$  932,159.88 
$  298,607.16 
$    64,963.41 


1, 356, 714. 67 


Included  in  the  above  are — 

Bad  debts,  as  defined  in  Section  5204,  Rev.  Stats $  6,  784. 19  ]  ^'"f'^*'  ^^^*\  amount  in  each  of 

Other  suspended  and  overdue  papers $  8, 416. 21  }■     :  "^.l^  uiree  items,  or  write 


Liabilities  of  directors  (individual  and  firm)  as  payers.  .$56,203.84 


in  the  word  "none"  if  there 
is  no  amount  to  enter. 


Loans  exceeding  the  limit  prescribed  by  section  5200  of   the  Revised  Statute.",  including  amounts  which 
exceed  this  limit  due  from  State  and  private  banks  and  bankers. 


Name  of  borrower. 

Enter  full   ■ 
amount  of  : 
loan. 

Enter  full 
Name  of  borrower.                    amount  of 

loan. 

J  no.  Wanjunaker 

1 
93.250 

I 

i 

None.' 


Stocks,  securities,  judgments,  claims,  <tc. 

Balances  diitfrom  or  to  approved  reserve  agents. 
From—  To— 


Pinter  name  and  location  of  bank.         Amount 


Tradesmen's,  N.  Y 
I.  Chase 


Enter  name  and  location  of  bank.         Amount. 


84,560.31   I 
46, 445. 45 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  &c.,  in 

this  city i      40,  943. 02 

Checks  and  drafts  on  other  banks i 


Average  reserve  and  interest.—Avern^e  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  was 
20i"nfl  percent,  of  deposits  and  bank  balances.    The  highest  rate  of  interest  paid  by  the  bank  is  3  per 


cent 


Overdrafts. 


Secured : 

Standing  12  months  or  over. 


Temporary 


Unsecured : 

Standing  12  months  or  over 

6        "  "       i 

3        "  "       ! 

Temporary i 


1, 544. 16 


None. 


None. 


Other  real  estate  and  mxtrtgages  owned. 
Loam  and  discount*,  secured  by  mortgages  or  other  real  estate  security. 


m 


90 


INVESTIGATION   OF   NATIONAL   BANKS. 


If  .•) 


:'■    M 


Exhibit  V. 

No.  of  bank,  2291. 

fUae  tlie  blnnk  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  priiifo*!  items. 1 

Report  of  the  roitdition  of  ''The  Keystone  Xat.   Bank"  at  Philadelphio,  in  the  State  of 
Fevna.,  at  the  clone  of  bimineHS  on  the  28  day  of  February. 


Dr. 


Cr. 


Hesources. 


Dollars. 


8. 
9. 

10. 
11. 

12. 

1.3. 
14. 


15. 

16. 
17. 
18. 

19. 


Loans  and  discounts  (see  schedule)  .1,363,444.68 

Overdrafts  (see  schedule) 1, 619. 24 

L'.  S.  bonds  to  secure  circulation  I 

(par  value)  —  per  cents  3  per 

cen  1 8 50. 0()0. 00 

U.  S.  bonds  to  secure  depo-sits  (par  | 

value)  —  i>er  cents 

V.  S. bonds  on  hand  (par  value)  — 

per  cents 

Stocks,     securities,     judgments, 

claims,  etc.  (see  schedule) 


Liabilities. 


Dollars. 


96,  a.'iS.  68 
82, 2;)G.  90 


Due  from  ai»i>roved  reserve  agents 

(see  sfhetlule) 

Due  fron>  natioDal  banks 

Due  from  State  and  j>rivate  banks 

and  bankers 58,971.30 

Banking  house $  ! 

Furniture  ant!  fixtures...  $10,000  i 


Capital  stock  paid  in j  500. 000. 00 

I 

Surplus  fund "  95, 000. 00 

Undivided  profits 31 ,  440. 21 


Circulating  notes  re- 
ceived from  Comp- 
troller  $ 

Less  am't  on  hand 
and  in  Treasury 
for  redemption  or 
in  transit $ 


5.  State  bank  circulation  outstand- 


mj 


Other  real  estate  and  m«)rtgage8 
owned  (see  .schedule) 

Current  expenses  and  taxes  paid.. 

Premium  on  bonds  for  circulation. 
.$ ;  i>remium  on  other  U.  S. 


bonds,  $- 


10,  000. 00 


13, 037. 72 


2.  000. 00 


Checks  and  other  cash  items  (see  ' 

schedule) 9. 473.  68 

Exchanges  in  clearing  house |    71.  488. 07 

Bills  of  othtr  banks |     13, 000. 00 

Fractional  pa i)er  currency,  nickels, 

and  cents 

Specie,  viz- 
Gold  coin  $23,640 

Gold  Treasury  certifi- 
cates   $ 

Gold     clearing-house 

certificates $30, 000 

Silver  dollars $  5,  400 

Silver  Treasury  certifi  • 

cates *. $ 

Fractional  silver  coin.  $  2,685 


6. 

7. 

8. 

9. 

10. 
11. 


12. 

13. 


Dividends  unpaid. 


Individual  dej>osits 

subject  to  duM-k. .  $1,191,745.35 
Demand  cei'titicat<'8 

of  deposit $ 

Time  certificates  of 

deposit $ 

Certified  checks $ 

Cashier's     checks 

outstanding $59,394.34 


45,000.00 


223. 00 


Unitefl  States  de]>osits 

De]M>sit8  of  U.  S.  disbursing  of- 
ficers  


1,251,139.69 


9<J8. 20   I  14.  Due  to  approved  reserve  agents 

(see  schedule) 7, 434. 35 

15.  Due  to  other  national  banks 46,192.06 

16.  Due  to  State  and  private  banks 
and  bankers ,      16, 141 .  22 


20. 
21. 


22. 
23. 


617. 25 

Legal-tender  notes 156. 0(K).  00 

United  States  certificates  of  de-  i 

posits  for  lesjal-tender  notes  (sec. 

5193,  Ke v.  Stat.) , 

Redenjption  fund  with  U.  S.  Treas-  I 

urer  (not  more  than  5  per  cent) . '      2, 250.  (K) 
Due  from  U.  S.  Treasurer  (other  ! 

than  5  per  cent  redemi)tion  fund) .  i 


Total 1,992,570.53 


17. 
18. 


Notes  and  bills  rftdiscoxinted. 
Bills  ]iayable 


Total 1,992,570.53 


I,  John  Hayes,  cash. of  "The  Keystone  Xat.  Bk.,  Philada.,  Penna.,"  do  solemnly  swear  that  the 
above  statement  is  true,  to  the  best  of  mv  knowle<lge  and  belief,  ami  tliat  tlie  schedules  on  back  of  the 
reiM>rt  have  been  carefully  filled  out  and  fully  and  correctly  rei>re.sent  the  true  state  of  the  several 
matters  therein  contained. 
Correct.    Attest: 

Jno.  Hayes, 

Cashier. 
G.  W.  Marsh, 
G.  B.  Haines, 
Saml.  Lucas, 

l>ireetont. 
Statb  of  Pknna.,  County  of  Philada.: 

Sworn  to  and  subscril>ed  before  me  this  eleventli  dav  of  Mareh,  1890. 

[SEAL.]  John  W.  Bakrox,  Xotary  Publie^ 

Must  be  acknowledged  before  an  officer  using  an  official  .leal.    See  act  approved  Feb.  26,  1881. 


INVESTIGATION    OF    NATIONAL   BANKS. 


1)1 


[Fill  all  scheflules,  writing  in  tlie  word  "none"  whei-ever  no  amount  is  to  be  enleied.j 

SCHEDULES. 

Loant  and  discounts^ 


On  demand,  on  U.  S.  bonds $ 

"  "         "  stocks,  bonds,  and  other  personal  securities *  "' 

Un  time,  paper  with  two  or  more  individual  or  firm  names 

"      "     single-name  paper  (one  penson  or  firm)  without  other  security 

"      "     secured  by  stocks,  bonds,  and  other  personal  securities 

"      •'    on  mortgages  or  other  real-esi ate  security  (see  schedule) 


$  73,  699.  00 
$874,  69;!.  G8 
$337,  (too.  00 
$  77,052.00 


Total I  1,363,444.68 


Include*!  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat. 

Other  suspendwl  or  overdue  paper 

Liabilities  of  directors  (individual  and  firm) 
as  payees 


*  6  784  19  ^ 

Z  -'ooi'io  Enter  the  amount  in  each  of  these  three 

*  '^  items  or  write  in  the  word  "none'' 
$60  663  80  **  there  is  no  amount  to  enter. 


Loant  exceeding  the  limit  prescnhed  by  xecfion  oiO^J  of  the  Revised  Statutes,  including  amounts  which 
exceed  thitt  limit  due  from  State  and  private  bankis  and  banlters. 

None. 

Stocks,  securities,  judgments,  claims,  i£c. 


Enter  number  -Nr-m.^^/if  ..,^..«,„...f5/»,.         Amount  at   ,    Estimated    :    State  whether  taken  for 

shares  of  st<Kk  or    j^j;,-""^^^.^^  Kn«tia  IV,.    «'l"*^^^l^  carried  actual  market      •  .lebts  lireviously  con- 
faee  value  of  bonds.;  "»»'"»K  8«>^K.  uomis,  etc.      ^^^  books.    ;        value.       ,     tracted, "  or  otherwise. 


Balances  due  from  or  to  approved  reserve  agents. 
From—  To— 


Enter  name  and  location  of  bank. 


Amount.  Enter  name  aiul  location  of  bank. 


Tratlesmen's  Nat.  Bk  . .. 
Chase  Nat.  Bank 


86,041.92      Chase 

10, 313. 7G 


Amount. 


7, 434.  a-> 


"H 


Checks  and  other  cash  items. 


('hecks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  aiid  drafts  on  other  banks  . . 


9, 473. 68 


Average  reserve  and  interest.  —Avar&ge  reserve  for  last  30  <lays  (in  bank  and  with  re.serve  agents) 
M'as  27.16  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3 
per  cent. 

Overdrafts. 


Secured : 

Standing  12  months  or  over 

'          6       "             *»      

•'            1  '       "               •* 
Temporary '.'.'.'... 

1 

1 
1 

Unsecureil : 

Standing  12  months  or  over 

Temporary 

1,619.24 

None. 
Nuue. 


Other  real  estate  and  mortgages  oioned. 
Loans  and  ditcounts,  secured  by  mortgages  or  other  real  estate  secuHty. 


92 


INVESTIGATION    OF   NATIONAL    BANKS. 


t 


m ; 


¥ 
M  -  ■ 


^:i. 


.      f 


ill 


1 


Exhibit  W. 

No.  of  Bank  2291. 

[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Jieport  of  the  oondition  of  The  Keystone  National  Bank^  at  Philadelphia,  in  the  State  of 
Pennsylvania,' at  the  close  of  business  on  the  17th  day  of  May,  1S90. 

Dr. ^"- 


Resources. 


1 ,  Loans  and  discounts  (see  schedule) 

2.  Ovt'idratts  (see  schedule) 

\i.  U.  S. bonds  to  secure  cinulation 

(par  value)  —  per  cents,  4i  per 
cents 

4.  U.S.  bonds  to  secure  deposits  (par 

value)  —  per  cents 

5.  U.  S.  bonds  on  hand  (par  value)  — 

per  cents 

6.  Stocks,     securities,      Judjiiments, 

tlaims, etc.,  (see  schedule) 


Dollars. 


1,273,090.50 
1, 126. 18 


50, 000. 00 


7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  Due  from  other  national  banks 

9.  Due  from  State  and  private  banks 

aiul  bankers 

10.  Banking  house $ 

11,  Furniture  and  tixturew.flO.000,00 


12.  Other  real  estate  and  mortgages 

owned  (see  si'hedule) -  -  -  - 

13.  Current  expenses  and  taxes  paid. . 

14.  I'remium  on  bonds  lor  circulation 

!^              ,  premiiuns  on  other  U. 
S.  bonds,  $  


79, 092. 55 
146, 124. 19 

32, 689.  78 

10, 000. 00 

"4,189.49 

2,000.00 


Liabilities. 


1 .  Capital  8to«k  paid  in 


2. 
3. 

4. 


Surplus  fund 

Undivided  profits 


Circulating  notes  re- 
ceived from  C'ymp- 
troUer $ 

Less  am't  on  hand  and 
in  Treasury  for  re- 
demptii>n  or  in  tran- 
sit   $ 


5. 


State  bank  circulation  outstand- 
ing   


6.  Dividends  unpaid 

7. 

8. 

9. 


20.  Legal-t«nder  notes 

21.  U.S. certificates   of    deposit    for 

legal-tender  notes  (see  5iy3,  Rev. 
Stat.) 

22.  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  i)er  cent 
on  circulation) 

23.  Due  from  U.  S.  Treasurer  (other) 

than  5percentredemittion  fund, 


16, 173. 05 
203, 722. 75 


1, 360. 89 


66,  760.  00 
139,  000.  00 


2,250.00 


Total 2,033,659.38 


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exchanges  for  clearing  house 

17.  Bills  of  other  banks ;      5, 180. 00 

18.  Fractional  i»apers,  currency,  niek- 

els,  and  cents 

19.  Specie,  viz. : 

Gold  coin $26,400 

Gold  Treasury  certifi- 
cates  $ 

Gold  clearing-house 
certificates $30,000 

Silver  dollars $7, 000 

Silver  Treasury  cer- 
tificates  $ 

Fractional  silver  coin    $3, 360 


10. 
11. 


12. 

13. 


14. 

15. 
16. 


17. 
18. 


Individual  deposits 
subject  to  check . .  $1 ,236,845.24 

Demand  certificates 
of  deposit $ 

Time  certifli-ates  of 
deposit $ 

(Certified  che<;ks ■$ 

Cashier's  <'hecks  out- 
standing  $    77,011.95 


Dollars. 


500,000.00 

100, 000. 00 
10, 821. 57 


45,  000. 00 


5,186.50 


United  States  deyiosits 

Deposits  of  U.  S.  disbursing  ofli- 
cers 


Due  to  approved  reserve  agents 

(see  schedule) 

Due  to  other  national  banks 

Due  to  State  and  private  banks 

and  bankers I    11, 370. 19 


1,313,857.19 


47,423.93 


Notes  and  bills  rediscounted. 
Bills  payable 


Total 


2,033,659.38 


I  John  Hayes,  cashier  of  "The  Keystone  National  Bank  of  Philadelphia,  Pennsylvania,"  do 
solemnly  swear  that  the  above  statement  is  true,  to  the  best  of  my  knowledge  and  belief,  and  that  the 
schedules  on  back  of  the  report  have  been  carefully  filled  out  and  fully  an«l  eorrectly  represent  tlie 
true  state  of  the  several  matters  therein  contained. 

John  Hayes,  Caahttr. 

Correct.    Attest.  ,         ^ 

John  Hayes, 

G.B.Haines, 

Louis  Dkeka, 

G.  W.Maksh, 

I/irectora. 

Must  be  acknowledged  before  an  officer  using  an  oftieial  seal.    See  act  appn»ved  February  26, 1881. 

State  of  I'ENNsvi.vania,  County  of  Philadelphia: 
Sworn  to  and  subscribe*!  before  me  this  2«th  day  of  May,  1890. 
[»EAL.] 


John  W.  Bakkon,  Notary  Pullie 


INVESTIGATION   OF   NATIONAL    BANKS. 


93 


iFill  all  schedules,  writing  in  the  word  "none"  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 
Loans  and  diiicounts. 


On  demand,  on  U.  S.  bonds 

On  (lemand,  on  stocks,  bonds,  and  other  personal  .securities I      $48,  754. 9;j 

On  time,  paper  with  two  or  more  individual  or  firm  names     {      gio]  09L  9;{ 

On  time,  single-name  paper  (one  person  or  firm)  without  other  securitv 333,'  507!  97 

On  time,  secured  by  stocks,  bonds,  and  other  personal  securities ! 81  j  635!  67 

On  time,  on  mortgages  or  other  real  estate  security  (see  schedule) 

^'otal 1  1,273,990.50 


Inelnded  in  the  al)ove  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.  Stat .$.'>,  216.  84!  ^"f""  *^?  amount  in  each  of  thes( 

Other  suspended  and  overdue  paper 7, 013. 18  \     V^^*^    .f"].";,^''  ^^F"®  '"  ^^^ ^"" 

Liabilitiesof  directors  (individual  and  firm)  as  payers  61, 200. 00  "**"^    "  *"^'***  '*^  ""  J'>"«"'"t  t< 


sse 

I 

to 


Loans  exceeding  the  limit  prcecHbed  by  section  r>300  of  the  Revised  Statutes,  includiny  amounts  which 
exceed  this  limit  due  from  State  and  j)rivat«  hanks  a?ui  bankers. 


None. 


None. 


Stocks,  securities,  judgments,  claims,  <6c. 

Balances  due  from  or  to  approved  reserve  agents. 
From—  To— 


Enter  name  and  location  of  bank.        Amount. 


Tradesmen's,  N.  T '  $48. 1.55. 08 

Chase,  "     30,937.47 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  &c.,  in 

this  city $16, 173. 05 

Check  and  drafts  on  other  banks 


..-^fo^^f  rew/re  rtwrf  ^«Y^r«*^-Ave^an:e  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
V  as  2o,J\,  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3 
per  cenc. 

Overdrafts. 


Secured : 

Standing  12  months  or  over. 
6       it  w 

•»         ,•{        ««  <i 

"         1        •'  "    ' 

Temporary ." 


ji  Unsecured: 

I         Standing  12  months  or  over. 
'■  "6        "  " 

«'  ;{  4.  t( 

Temporary .' 


$1, 126. 18 


None.  * 


None. 


Other  real  estate  and  mortgages  owned. 


Loans  and  discounts,  secured  by  mortgages  or  other  real  estate  security. 


II 


'•■   v.m 


h 

'-H 

't 

4 

^^ 

? 

4^ 

tel 

■i 

i 

n 


^' 


;-« 


•^1 


a; 


11 


f 


04 


INVESTIGATION    OF    NATIONAL    BANKS. 


Q.  The  last  exaininerV  report  is  that  of  October,  1889?— A.  These 
i>re<?ede  the  report  of  July  3,  1800. 
Q.  Take  the  examiner's  report  of  eJuly  3,  1800.— A.  I  have  the  report 

of  .lulv3,  1890.  ^       ,  ^  , 

Q.  Vou  will  please  read  that  letter.— A.  This  is  a  letter  dated  July 
L>8,  1890,  addressed  to  Mr.  Gideou  W.  Marsh,  president  of  the  Key- 
stone I^ational  Bank. 

TlJEASl'RY  DKPAKTMENT, 

Office  of  CoMriKOLLKK  of  the  Cukkency, 

Washington,  D.  C,  July  SS,  1800. 

Mr.  Gideon  W.  Marsh, 

President  Keijstone  Nat'wual  Bank,  VhiUuielphia,  Pa. 
SiK :  The  report  of  an  exiimiuatiou  of  your  bank,  made  on  the  3r(l  instant,  has  been 

re(!eivetl. 
The  tbilowing  loans  appear  to  exceed  the  limit  prescribed  by  sec.  5200,  U.  S.  Rev. 

Stat. : 

J  oh  11  Wanamaker ^200,  000. 00 

Estate  of  .John  C.  Lucas 57,bAi.b7 

Thtise  loans  should  be  reduced  to  the  lawful  limit  as  soon  as  practicable.  Please 
inform  me  when  this  has  been  done. 

The  examiner  states  that  the  iirst-mentioned  loan  was  reduced  durmj^  the  exami- 
nation by  tlie  payment  of  $50,0<K),  and  that  it  would  be  still  further  reduced. 

Your  lawful-mbuey  reserve  at  the  time  of  the  examination  was  $107,082.58  less 
than  the  legal  requirement,  and  it  is  reported  that  your  average  reserve  for  the  thirty 
days  pi*eceding  examination  was  but  uineteeu  per  cent,  and  that  your  reserve  is  usu- 
ally deficient.  ^  ^  ^       ,  .  .   r.    i  •  i 

Your  attention  is  respectfully  calle<l  to  sec.  5191,  IT.  S.  Kev.  Stat.,  which  forbids 
national  banks  to  increase  their  liabilities  by  making  any  new  loans  or  discounts 
while  there  is  a  deficiency  in  the  required  reserve.  I'nder  the  provisions  ot  this 
section  it  becomes  my  duty  to  notify  you  to  make  this  reserve  good.  Please  inform 
me  when  this  has  been  done. 

In  this  connection  the  examiner  states  that  it  has  been  your  custom  to  count 
* 'clearing-house  checks  on  other  banks"  as  a  part  of  your  reserve,  Avith  the  eft'ect  of 
making  Ft  appear  sufficient,  when  in  ftict  it  was  not  so.  He  states  that  this  practice 
has  now^  been  corrected,  and  you  are  respectively  advised  that  it  should  be  guarded 

against  in  future.  «  oo  • 

Overdue  paper  is  reported,  amounting  to  $20,743.93,  of  which  $10,582.88  is  classed 
as  ''bad  debts,"  as  defined  by  see.  5204,  U.  S.  Rev.  Stats.  With  regard  to  the  ''bad 
debts"  the  examiner  states  that  very  little  will  be  realized,  and  also  that  you  will 
sustain  some  loss  on  the  other  overdue  pa})er.  He  also  rei>orts  that  it  is  likely  that 
you  will  sustain  a  considerable  loss  on  the  paper  of  F.  J.  Primrose,  amounting  to 
$12,816.86,  which  has  been  extended. 

The  loss  on  these  items,  as  soon  as  ascertained,  should  be  charged  off;  and  until 
this  is  done  no  further  dividends  should  be  declared  by  your  bank. 

It  also  appears  that  you  have  borrowed  $230,000  from  banks  in  Philadelphia  on 
certificates  of  deposit  and  bills  payable,  all  of  which  is  secured  by  $310,378.87  of  the 
bills  receivable  of  your  bank  lodgted  with  these  banks  as  collateral.  In  addition  to 
this  it  appears  that  you  have  rediscounted  $25,000  with  the  Chase  National  Hank 
of  New  York,  making  a  total  of  $25,5,000  borrowed  by  your  bank. 

This  amount  of  bonowed  money,  taken  in  connection  with  the  hal)itual  shortage 
in  your  lawful-money  reserve,  make  it  appear  that  the  business  of  your  bank  has 
been  too  largely  extended,  and  this  condition  should  be  corrected  as  soon  as  practi- 
cable, first  by  the  reduction  of  the  excessive  loans  noted,  and  further  by  the  reduc- 
tion of  the  volume  of  your  excessive  loans  and  discounts  Avithin  the  limits  of  prudence 

and  safety.  ^  ,  •      ,  4. 

The  necessity  for  such  a  course  is  urgent,  as  it  appears  from  the  examiner  s  report 
that  the  habit'of  being  frequently  indebted  to  the  clearing-house  and  the  practice  of 
borrowing  from  other  banks  to  make  good  this  indebtedness  has  had  the  effect  ot 
causing  your  bank  to  lose  standing  w^ith  the  clearing-house  committee,  and  in  some 
measure  to  attect  vour  credit  with  your  associate  banks. 

A  prompt  and  full  reply  to  this  letter  over  the  individual  signatures  of  your  direct- 
ors, to  whose  attention  you  will  please  bring  it  for  consideration,  is  respectfully 
requested. 

Respectfully  yours, 

^  ^  ^        *  E.  S    Lacev, 

Comi)troller. 


INVESTIGATION   OF   NATIONAL   BANKS. 


95 


Q.  Did  you  get  a  response  to  that  letter  ?~A.  I  got  a  response  to 
that  letter  dated  July,  1800,  which  is  as  follows: 

[G.  W.  MarsL,  president.    John  Hayes,  caehier.    Chas.  Lawrence,  assist,  cashier.] 

^oo«      ^  .„««  ^  Keystone  National  Bank, 

i62h  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint 

Hon.  K.  S.  LACET,  nuadelphia,  July  2911,,  'l890. 

Comptroller  of  the  Currency,  Washington,  D.  C:  .      ' 

Dear  Sik:  Your  letter  of  July  28  was  received  this  a.  m.  and  read  to  our  full 
board  at  their  regular  meeting. 

In  regard  to  the  loans  in  excess  of  section  5,200,  we  would  say  that  the  loan  to  Mr. 
\\anan.aker  has  been  further  reduced  to  100,000,  and  he  has  promised  to  re<luce  to 
the  limit  before  the  next  ten  days.  "vc  i,^ 

The  reserve  for  the  previous  three  days  was  far  beyond  the  25  per  cent,  and  on  the 
day  of  the  examination  we  had,  owing  to  the  fact  of  the  next  daf  being  k  h(didav    a 

iKif  ""i^"  ""^  ''^^'^'  ^'^'^?i  "'J  account  of  wages,  etc.,  and  the  disbursements  of 
the  citj'  treas.  were  unusually  large.     We  had   an  examination  on  July  14  b v  a 
com    «t  our  beard    on  which  day  we  were  up  to  the  limit  and  we  have  been  up 
t«  25  per  cent  one  day  since.     We  have  not  made  any  new  loans  since  the  3d  Julv 
and  are  using  every  exertion  to  get  our  reserve  permanently  above  the  limit  ' 

In  regard  to  the  overdue  paper,  the  board  have  agreed  to  charge  off  before'makinc- 
coUections"  ""       ''''  *^^^  *^"'^  they  will  notbeable  tomake  any  l^uther 

Zs^StedrS.'""""''  '""  ^*'^^  ^""^^'  -^  -«"^^  -^  *^«*  *^^  «-^^ 

r.^.^z:'^rztL^j^^^l^'  ^^^'  '^^'^  '^^"  ^^''  ^^  ^--"  «^ 

In  reply  to  your  commeits  on  the  fact  of  the  business  being  so  largely  extended 
we  <1  note  from  the  report  made  by  our  committee  on  July  14th  f  "And  that  we  recom- 
mend that  the  general  line  of  discounts  be  reduced ;"- That  no  loa^fora  larl^; 
amount  than  50  M  be  allowed  to  anv  one  depositor.''  ^ 

"We  also  find  notes  due  and  uncollectible  amounting  to  13,248.23,  some  of  which 
we  would  recommend  to  be  cancelled  and  charged  off  prior  to  nixt  di^dend  day - 

The  course  oi  action  above  described  will  be  ttrictly  adhered  to,  and  it  is  the  in- 
tention of  the  board  to  do  only  such  business  as  is  consistent  with  Safety 

Our  board  have  added  their  signatures  to  this  letter,  and  they  hope  we  will  not 
again  need  to  be  reminded  of  our  shortcomings  by  avoiding  haVTng  them  ^ 

Very  respectfully,  «      ^  fog    uom. 

G.  W.  Marsh,  P<. 
[G.  W.  Marsh,  president.    John  Hayes,  cashier.    Chas.  Lawrence,  asst.  cashier.] 

iQoft      iiooon  Kkystone  National  Bank, 

1326  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint 

The  enclosed  letter  approved.  Philadelphia,  July  29,  'l890. 

D.   P.    S.   NiCHOLg. 

Charles  McFadden. 
C.  N.  Shellenberger. 
Samuel  Lucas. 
J.  F.  Jackson. 
Granville  B.  Haines. 


1 1 


mm 


7        -1    ! 


■'L  :* 


96  INVESTIGATION    OF   NATIONAL   BANKS. 

Exhibit  X. 
No.  of  bank,  2291. 

JCxamiuer^s  report  ojt  He  common  of  the  Keji^fo.e  Natio.alBank,  located  «'  ^^^'^^^^ 
iM  //."  'o*in/^  of  Philadelphia,  State  of  Penvsyliama,  at  S  o^clockp.m.,  July  S,  1890. 

1  Examination  conimeBced  at  2  o'clock  p.  ni.     Examination  closed  July  16.] 

,.       .^     ,  .TOHN  HAYEg.  CaahuT. 

Gideon  W.  Maush,  Prendent. 


INVESTIGATION    OF   NATIONAL    BANKS. 


97 


Resources. 


Dollars. 


1.  Loans  and  discounts  (see  schedule)  1 

2.  Overdraft* ;  •  • " ," " ;.' ' "  I 

3.  1^.  S.  iMinds  to  secure  nnulation 
(4*  per  cent.) •■■■.;"/■■ 

TJ.  S.  bonds  to  secure  deposits  (— 

per  cent) •  v ' 

TJ.  S.  bonds  on  hand  (—  per  cent.)  . 
o.  Preraiam  on  U.  S.  Iwnds    -  ■  •  • 

7,  Stocks,  securitieb,  claims,  et<5.  (see 

schedule) 

8.  Banking  house -- ■ 

Furniture  and  fixture.  .$10, 000. 00 


4. 

5. 
6 


9. 
10. 


Other  real  estate  and  mortgages 

(see  schedule) ■-" 

Due  from  app'd  reserve  agents,  viz 
Tradesmen's   Nat. 

Bank,  New  York  .$27,019.67 
Chase  Nat.    Bank, 
New  York 1*.  6.3J.  M 


,417,424.44 
25, 658.  :J2 

50,000.00  I 


2,000.00 


10,  iKH).  00 


IJabilities. 


1.  Capiial  stock  paid  in 

2.  Surplus  fund ; 

3.  Other  undivide<l  profits,  viz: 

Discount    $11,56.'>. 

Exchange '^67. 

Interest 

Premiums 

Rent  .«* .  — 

Protit  and  loss  .. .      7,355. 


Dollars. 


500,000.00 
100,000.00 


87 
51 


73 


11  Dui'  from  other  national  banks 

12  Dtie  from  Slate  banks  and  bankers 
13!  Exchanjics  for  clearing  house 

14.  Checks  on  other  banks  in  same 

place ,'*,■"■  i 

15.  Bills  of  other  national  banks 

16.  Minor  coins 

17.  ('ash  items , 

18.  Reserve  fund  in  bank,  viz : 

Frartioual  silver  . .     $0, 871.  M 

Silver  dollars 407.  (X) 

Silver  Tr'y  cert's  .      4,  608. 00 

Gold  coin 

Gold  Try  cert's  . . 
Legal  tender  notes 
U.S. cert's  of  dep. 
C.H.  certs  of  dep. 


Diu'  to  app'd  reserve  agents,  viz: 

Due  to  other  national  banks 

Due  to  State  banks  and  bankers  . 

Dividends  unpaid 

Individual  deposits,  viz : 

Subject  to  check  $1,077,178.99 
Demand  certi  f "  s         30, 000 

Time  certificates 

Certified  checks 

Cashiers  checks 


19,289.11 

'7,.'H»4.6."> 

902. 57 

1,306.00 


3, 732. 50 
400.00 

7, 270. 00 
45, 000.  00 
15, 000.  00 


41. 653. 01 
178,  512. 38 
8, 11.5. 14 
130,602.31  I 

42,989.31  ' 
1,  555. 00 
1,  753. 03 
434.00 


9.  United  States  dei>osits 

10.  Deposits  of  U.S.disbursingofficers 

11.  Circulation  received $45,000 

L  ess  on  hand  and  ret'nd .         125 

12.  St«febank  circulation  outstanding 

13.  Notes  and  hills  redisrounted 

14.  Bills  payable 


1,107,178.99 


44. 875.  W) 

25,()00.66 
200,000.00 


5  ]..  c.  re<ln  fund  with  Treas.  F.  S 
Other  funds  with  Treas.  I  •  S. . . . . 

.$7,913.05 


19. 

20, 

21.  Current  expenses 

Taxes  paid .Viii" rV 

Interest  paul ^^  *>**•  '•* 


22.  Cash  short  (recent). 
Total 


82,  'M9. 00 
2, 250. 00 


10,458.38 
302. 00 


2,006,056.32 


15.  Cash  over. . 
Total 


2,006,056.32 


Supplem^^torn  sheet  U,  examinf^  report    on    -'Ken'tone   Notioml   Hank,"    PhiladeU 
^^  phta,  Pa.,  of  July  3,  19^0. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency, 

Washinffton,  D.  C: 
Sir-  Althous£h  some  improvement  is  evident  in  the  general  coml  it  ion  and  conduct 
nfthis  bank  shice  the  election  in  January  last  of  Mr.  CI.  W.  Marsh  to  the  presidency, 
^Jil^its  IbrLr   11^^^^^^^  relations  with  the  clearing  house,  its  habit  of  being 

wi  Hn[lv  ill  debt  there  and  its  practice  of  as  often  borrowing,  generally  on  due- 
hrfrom  other  banks  a  large  proportion  of  the  funds  necessary  to  discharge  such 
huUtXesr^^^^  tendency  to  overloan,  and  to  <lisre2ard  the  legal 

requi^^^^^  as  to  reserve,  as  referred  to  in  my.  previous  reports  on  tU  bank  eon- 
thme  too  largely  to  characterize  its  ado-inistration.  The  result  has  been  t^a*  ^tj^^ 
lost  standiuS  with  the  clearing  house  committee,  to  some  extent,  and  has  l>eeu 
brought^nto^P  discredit  wfth  many  of  its  aB8<»ciates  in  the  clearing  house. 


A  close  scrutiny  of  its  methods  of  computing  its  reserve  as  given  in  its  moniino- 
rrports  to  the  clearing  house  maujiger  lately  developed  the  fact  that  it  has  been  the 
practice  of  the  bank  to  count  as  a  part  of  its  reserve  clearing  house  checks  on  other 
banks,  thus  enabling  the  bank  to  appear  to  have  its  reserve  when,  in  fact  it  has 
been  short  of  its  resen^e  by  the  amount  of  such  checks.  This  error,  I  think,  was 
corrected,  as  since  the  3<l  inst.  I  have  daily  computed  the  reserve  for  the  bank'  and 
have  forwarded  its  true  ccmdition  in  that  regard  to  the  clearing  house  committee. 
I  have  also  revised  the  computation  made  by  the  bank,  and  am  of  the  opinion,  from 
assurances  vfhirh  I  have  exacted,  that  the  mistake  heretofore  committed  will  be 
discontinued  in  the  future. 

I  have  also  otticially  notified  the  board  of  directors  to  suspend  all  discounting 

other  than  renewals— until  the  reserve  of  the  bank  is  fully  restored,  and  have  ac- 
tively participated  with  tlicm  in  inducing  payment  before  maturity  of  some  large 
loans,  particularly  those  to  John  Wanamaker. 

It  is  but  Just  to  him  to  add  that  he  readily  assented  to  this  reduction,  and  has 
engaged  to  return  to  the  bank  at  an  early  day  all  in  excess  of  the  legal  limit  which 
has  been  loaned  to  him.  Mr.  McFadden,  a  wealthy  director,  has  promised  me  to 
put  $50,000  in  the  bank  iu  a  few  days,  and  others  have  likewise  engaged  to  assist  in 
the  work  of  restoring  the  reserve,  and  of  maintaining  its  sufficiency. 

I  have  induced  the  board  (jf  directors,  by  a  committee,  to  make  a  complete  exam- 
ination of  the  bank,  and  their  report  will  be  before  me  iu  a  few  days.  They  have 
completed  their  work  of  examination. 

The  stockholders  of  this  bank  include  several  very  strong  men  tinancially— as 
follows:  Granville  B.  Haines  (a  director  owning  991  shares  of  stock  of  the  bank)  is 
at  the  head  of  one  of  the  largest  and  strongest  drv-goods  houses  in  the  city,  and  is 
rated  high  personally.  Charles  McFadden  (a  director,  owns  700  shares  of  the  stock) 
IS  a  rich  contractor,  and  is  worth  nearly  $1,000,000.  Mr.  Tow  (800  shares  of  the 
bank)  is  reputed  wealthy.  D.  B.  Nicholls  (a  director  owning  .350  shares)  is  a  stron«^ 
active  business  man  of  high  credit,  and  the  estate  of  the  late  prest.  of  the  bank' 
John  C.  Lucas,  owns  2,300  shares  of  stock  of  the  bank;  the  administrators  of  that, 
estate  value  the  estate  at  from  ,$400,000  to  $500,000. 

I  shall  continue  my  oversight  of  the  bank  in  regard  to  the  matters  referred  to 
above,  and  will  most  earnestly  strive  to  cooperate  with  your  office  in  any  ^'disci- 
pline" it  may  be  thought  expedient  to  apply,  and  I  would  respect fullv  su^-jrest  that 
a  strong  letter  of  instructions  be  sent  to  the  bank,  with  anv  degree  of  earuestiiess 
that  may  operate  for  the  future  the  necessity  I  have  felt  for 'a  long  time  (shared  in 
by  the  C.  H.  committee)  of  almost  daily  watchfulness  iu  regard  to  the  conduct  of 
this  bank. 

The  bank  is  fully  solvent,  but  inefficiently  managed,  particularly  in  respect  of  its 
reserve,  and  its  habitual  tenden<y  to  ''overloan." 
Very  respectfully,  your  obt.  servant, 

Tj„„  T^        r  ,  W.  P.  Drew,  Xat.  Bank  Exmr, 

Philadelphia,  Pa.,  July  IS,  1890. 


t^^'^®,~J;^''\^""^rs  are  requested  to  report  below  whether  the  records  are  fullv 
ana  explicitly  kept,  ami,  if  not,  whether  iiroper  corrections  and  additions  have  beeii 
made  during  examination,  whether  the  books  are  conectlv  kept,  and  how  often 
aecouuts  are  balanced,  which  officer  is  iu  charge,  and  if  the  others  are  active  or 
iiiactive;  their  reputation,  salaries  paid,  and  bonds  required  of  them;  whether  the 
omcers  are  trained  bankers,  audit  they  are  engaged  in  business  outside  of  the  bank; 
.;«!«!;  iT  '  directors  meet  regularly  as  a  board,  and  how  often ;  the  number  of  shares 
o vMied  by  each ;  whether  they  have  active  discount  and  examining  committees,  or 
vWi.'"'"''*^®'T'*'^''.*'^*'^y*''*'*^^^''*5  ^^^  nuwberaiid  .lasses  of sfockholders,  4ud 
•nwl  ff  *T"''^  meeting  was  regular;  whether  the  office,  safe,  and  vault  are  secure, 
enlVrli  ^A-  ^^  *"y  ^^^^^  business  than  that  of  this  bank,  wheth«'r  its  business  is  k«i»t 
entirely  distinct  and  separate.] 

Records:  In  satisfactory  condition.     Bills  discounted  found  correct  within  $1,000 

led.rer  [An^^  ^^P* '  ^  "2^^i^'idual  ledgers  (1,751  acs. )  balanced  qua rterly ;  third 

Pf?   1  $ll,00aovor— a  recent  error  by  summer  clerk ;  under  investigaticm. 
,n!i-^!lrA   .   Manager  of  bank ;  owns  54  shares  of  stock ;  formerlv  cashier;  a  popular 


.iiid  devoted  Officer;  salary,  $3,500;  no  bond. 
Vice  President:  None. 


impiOA  e  with  experience ;  salary,  $2,400;  bond,  $15,000. 
Assistant  cashier:  None. 

eaPwi^T®'  '''♦'"•.owning  2,3^5  shares;  mainly  in  active  business;  board  meets  twice 
*-a<  n  Meek  ;  examine  assets  semiannually. 

3702 7 


m 


i^ 


,mmmm 


^\ 


ill- 


ll 


ifii-  n;' 


98  INVESTIGATION   OF   NATIONAL    BANKS. 

Stockholders:  One  hninlred  and  forty-nine.  All  have  certiticateB  of  stock;  par 
value  of  shares,  $50;  Hell  for  $65.  ,  on-  „  rM.«.,f,.„f 

Othce,  vault,  and'safe:  Elegant  hanking  rot»ni  innew  Lucivs  ^^uilding  on  Chostn  t 
St.,  opposite  U.  S.  Mint;  superior  safes  and  vaults,  time  lock's,  and  watchmen,  lent 
paid,  $10,000  net. 

DIVIDENDS  AND   .siKPLrs    (^SECTIONS  5199   AND  5204    U.    S.   REVISED   STATUTES.) 

Date  of  last  dividend,  May  5,  1890.     Amount,  $        S  per  cent,     (^arried  to  surplns, 

^'^Chafgcd  off  since  last  examination :  Losses,  $1,503.48.     Premium,  $ .     Decrease 

of  values,  $ . 

LOANS  AND  DISCOUNTS. 

A.  Paper  with  two  or  more  individual  or  firm  names -  -     $890, 116. 80 

B.  Single-name  paper  (one  i)er8on,  company,  firm,  or  memhers  ol  a 

company  or  Hrm),  without  other  security - •i9t>,  ^^'  ^^ 

C.  Loans  and  discounts  secured  by  real-estate  mortgages  or  liens  upon 

real  estate -  - - .,,  tyr^  on 

D.  Demand  loans  secured  by  other  collaterals ««'  St  5fi 

E.  Time  h)an8  secured  by  other  collaterals ee,04<.oD 

Total  notes  and  bills  discounted h  ^l'^,  424. 44 

Included  in  above  are—  .       .^^.     .,  ^t     t>     •     i 

F.  Bad  debts,  as  defined  in  section  o204  of  the  Revised 

Statutes in'?rT*n 

G.  Other  8us])ended  and  overdue  ])aper H>,  ibi.  ii 

H.  Liabilities  of    directors   (individual    and  firm)   as 

payers 109.  (>0;,.  8,3 

LOANS  EXCEEDING  THE  LIMIT  PRESCUIDED   BY  SECTION  5200  U.  S.  REVISED  STATUTES. 

John  Wanamaker  (own  order  $100,000) .-  -  -  -     ^200, 000. 00 

Reduced  by  $50,000  during  this  examination,  on  assurances  received 
of  further  reduction   within  a    week  (from  July  16)  to  legal  limit, 

Estate  of  J(»hn  C.  Lucas  (late  prest.  of  bank,  dec'd) $57, 6;^.  67 

Note  of  administrators,  on  demand,  representing  a  balance  from  some  $90,000  (dif- 
ference paid)  of  his  obligations,  direct  and  indirect,  assumed  by  them;  administra- 
tors say  estate  is  entirely  solvent  and  much  more. 

Note  — ITnder  the  head  of  General  Remarks  the  examiner  should  mention  the 
character  of  eollaterals  held,  and  give  a  general  dcseription  of  the  loans  »"d  <  jS' 
counts,  overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses  b  is 
payable,  or  other  accommodations  songht  by  the  bank,  and  the  necessity  theieloi 
He  should  schedule  all  excessive  loans  obtained  by  any  corporation,  <'0"'Pany,  m 
firm,  thnmgh  its  stockholders,  members,  officers,  or  employes,  tor  the  benefit  ami  use 

f  sich  companv,  corporation,  or  firm,  as  may  appear  from  the  credits  such  account 
has  received,  or  otherwise,  and  shonld  describe  the  manner  in  which  such  accommo- 
d  tions  were  ol>tained.  He  shouhl  note  any  deficiency  in  the  lawlul  '""ney  reserve 
at  date  of  examination  or  during  the  precoding  thirty  days,  aud  its  general  condi- 
tion since  the  last  examination.] 

GENERAL  RKMAHKS. 

Overdrafts,  101  acs v*:a: 4iu  nn7  17 

38  acs.  made  good  up  to  to-day  (.Inly  16) '^^-^^^'^^ 

Balance  probably  good,  less,  say  $1,000    .     ... . ... ....  -  -  - $(i,  050. 85 

Memo.— Still  further  reduced  to-<lay  (.Inly  18)  by  $5,350.b.». 

Bad  debts :  ■        y    ^  v 

1.  Due  April,  1888.  L.  L.  Cann,  with  26  cases  wine,  balance  from 

$3,000,  difference  i>aid,  mainly  a  loss -  - .  -  --;-•:-■•---,'•';*  '       " 

2.  Due  May,  1888  (many  previous  renewals),  ''  The  Amico  1  nblisli- 

in<'  House"  (failed),  by  Charles  Lawrence  (clerk  in  the  bank), 
trustee,  good  for  some  part  from  plates,  etc.,  last  interest  paid 

May,  1888 ^>-^^''-^*^ 

$10, 582. 82 
Both  should  be  gradually  charged  off. 


INVESTIGATION   OF   NATIONAL   BANKS.  99 

Other  past-due  paper: 

Due  October  and  November,  1888,  2  notes  (Wright,  $5,000,  in  suit), 

hopeful $5, 150. 00 

Due  1890,  11  notes,  recent  and  (less  Keystone  Watch  Club  Co.,  failed 

$2,000)  good 5,011.11 

$10, 161. 11 

Bank  has  likewise  under  discount,  not  due,  $1,500  more  of  the  Keystone  Watch 
Club  Co.,  equally  doul>tfnl. 

Extended  paper,  likely  to  be  mainly  a  loss : 

F.  J .  Primrose,  renewals,  interest  paid $12, 816. 86 

Balances  with  other  banks,  including  reserve  agents,  have  been  verified  l>y  corre- 
sjiondence;  also  all  loans  to  bank.     Interest,  at  2  to  2^  per  cent,  paid  on  some 
$250,000  deposits. 
Average  reserve  for  last  thirty  days,  estimated,  19  per  cent. 
General  condition  of  reserve,  short. 

This  bank  continues  to  act  as  the  active  depository  of  the  Philadelphia  city  treas- 
urer, authorized  by  vote  of  councils,  with  an  average  balance  (also  authorized  by 
councils)  of  $400,000;  balance  to-day,  $.399,000. 
Certificate  of  deposit.    Loan  of  $30,000  from  Farmers'  and  Mechanics'  National  Bank, 

Philadelphia,  with  $40,000  bills  receivable  as  collateral. 
Bills  payable : 

Fourth  Street  Nat.  Bank,  Phila $ioo,  000 

Seventh  Nat.  Bank,  ''     70000 

Com  Exchange  Nat.  Bank,  '^     'VoOO 

Drexel&Co.  '<    '.*.:;'.;::        "s^OOO 

With  $270,378.87  bills  receivable  as  collaterals $200  000 

Rediscounts :  ' 

Chase  Nat.  Bank,  New  York |25  000 

*  Please  see ''Supplementary  sheet." 

W.  P.  Drew, 

Examiner. 
To  the  Comptroller  of  the  Currency, 

Washington,  D.  C, 

Q.  Was  any  dividend  declared  by  the  Keystone  Bank  after  that  letter 
was  written?— A.  The  report  of  Mr.  Drew,  of  Febrnary  2S,  1891,  shows 
that  the  date  of  the  last  dividend  was  :November  4,  1890,  3  per  cent. 

Q.  So  a  dividend  was  declared,  according  to  your  letter,  in  November, 
1890?— A.  Yes,  sirj  according  to  the  report  of  the  examiner. 

Q.  Look  at  the  report  of  July,  1890,  and  see  if  there  is  a  dividend  in 
that  report,  and  if  so,  give  the  date.— A.  According  to  tliis  report,  a  divi- 
dend was  dechired  May  5, -1890,  of  3  per  cent. 

At  this  point  the  committee  adjourned  until  Friday,  April  29, 1892. 


COMMITTEE  ON  BANKING  AND  CURRENCY. 

Washington^  B.  C,  Friday,  April  29^  1892. 

The  committee  met  at  10  a.  m. 

Present:  The  Chairman  and  Messrs.  Cobb,  Cox,  Cate,  Henderson, 
Busey,  Sperry,  Walker,  and  Dickerson. 

On  motion  of  Mr.  Walker  it  was  decided  that  hereafter  six  members 
ol  the  committee  should  be  sufficient  to  constitute  a  quorum  in  this 
inquiry. 


A 
If 


1  i- 


ii  I - 


100 


INVESTIGATION    OF    NATIONAL    BANKS. 


tilt 


I     !, 


IM 


TESTIMONY  OF  E.  S.  LACEY,  COMPTROLLER  OF  THE  CURRENCY— 

Resumed. 

The  Chairman.  We  were  at  the  point,  in  your  exaniiuatiou,  looking 
at  the  letters  of  July,  1890.  We  will  recur  to  that.  Will  you  proceed 
and  state  what  communication  you  had  next  with  regard  to  the  Key- 
stone Bank,  whether  it  came  from  the  examiner  or  from  any  other 

source? 

Mr.  Lacey  i)roceeded  to  read  the  letters  of  his  Department  in  relation 
to  the  Keystone  Bank,  copies  of  which  he  will  furnish  to  the  committee 
hereafter. 

During  the  reading  of  the  letters  the  following  proceedings  took 

place : 

By  the  Chairman  : 

Q.  Did  you  reply  to  the  letter  of  August  2, 1890  f— A.  No,  sir. 

Q.  What  is  the*  next  communication  ?— A.  The  next  is  a  letter  from 
Mr.  Drew,  dated  August  2, 1890,  ui  which  he  alludes  incidentally  to  the 
Keystone  National  Bank. 

Philadet.phia,  AngmtS,  1800. 

Hon.  K.  S.  Lacey, 

Comptroller  of  the  Currency,  WaHhittfjton,  D.  C: 
Sir:  I  have  the  honor  to  state  that  your  instructions  to  the  Keystone  National 
Bank  of  tliit*  eitv,  with  letters  to  the  DirectorH  (individually)  of  that  bank,  callin«r 
their  attention  tlioreto  seem  likely  to  have  the  desired  ofteet,  and  I  hope  that  before 
many  days  I  shall  be  able  to  report  a  marked  change  for  the  better  in  the  condition 
of  tlio  bank. 

I  am  requested  by  those  of  the  C.  H.  (Jomniittee  now  in  the  city  to  thank  you,  for 
them,  for  the  ready  and  effective  cooperation  rendered  by  yonr  ottice. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Hank  Examiner. 


Philadelphia,  Aug.  2,  1800. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

Sik:  For  the  last  several  weeks  I  have  been  hard  at  work  in  my  district  to  place  tlie 
work  here  in  such  a  stage  of  forwardness  as  would  enable  me,  with  your  permissicm, 
to  take  a  vacation  some  time  this  month  at  my  obi  home  in  Maine.  I  have  given 
particular  attention  to  the  banks  which  have  required  special  care  in  examination— 
notably  ''The  Keystone  National  Bank"  of  this  city,  and  also  ''The  Spring  Garden 
National  Bank."  '  My  report  on  the  former  is  already  before  you,  and  that  of  the 
latter  will  be  forwarded  to  your  office  early  next  week. 

If  there  should  seem  to  be  anything  in  either  report  which  requires  further  atten- 
tion on  my  part  before  goin«'  away,  I  would  thank  you  to  give  me  the  required  in- 
structions as  early  as  the  lOtti  inst.,  if  practicable. 

I  intend,  in  a  few  days,  to  visit  the  1st  National  liank  of  Hightstown,  N.  .L,  as 
directed  by  your  letter  of  a  short  time  ago,  and  can  adapt  the  time  of  my  vacation 
to  conform  to  any  wishes  you  may  have  for  my  services  elsewher(^  before  I  go. 

I  woiihl  likewise  be  happy  to  render  any  service  within  any  of  the  banks  in  Maine 
or  on  the  line  of  my  journey  to  and  from  Augusta,  where  I  puri>ose,  with  your  per- 
mission, to  make  my  sojourn.  I  am  also  at  your  call  should  yon  desire  that  J  visit 
your  othee  in  person  at  any  time  on  any  matters  connected  with  my  duties. 

Yours,  respectfully, 

'       ^  "^  W.  P.  Drew, 

Nat,  Hank  Examiner. 

Q.  Does  that  letter  of  Angust  2,  from  Mr.  Drew,  refer  to  the  report 
of  the  3d  of  July?— A.  Yes,  sir. 

Q.  There  was  no  report  between  tlie  3d  of  Jidy  and  the  writing  of 
that  letter  ?— A.  No,  sir.  It  will  be  remembered  that  this  period  was 
one  of  great  stringency  in  the  money  market,  when  the  probable  fail- 


INVESTIGATION   OF    NATIONAL    BANKS. 


101 


ure  of  the  JJaring  Brothers  was  announced  on  tlie  15th  of  November, 
at  which  time  stocks  fell  off  remarkably,  and  money,  if  1  recollect 
aright,  went  to  182  per  cent  per  annum. 

Q.  Is  there  no  communication  between  those  dates  mentioned  calling 
attention  to  the  condition  of  the  Keystone  Bank?— A.  No,  sir;  I  think 
there  was  nothing.  *       '      ^^^^^^ 

Q.  We  would  like  to  be  sure  of  that.— A.  I  can  only  say  I  have 
required  the  clerks  in  charge  of  the  correspondence  to  produce  every- 
thing to  and  from  the  office,  and  to  and  from  the  examiner,  for  this 
period  111  relation  to  the  bank.  ' 

By  Mr.  Payson  : 
Q.  Your  recollection  is  the  same?— A.  Yes,  sir. 

By  the  Chairman  : 
Q.  Tell  me  where  your  correspondence  relating  to  these  matters  is 
kept,  and  how  it  is  kept.    Is  it  kept  in  more  than  one  place  ?-  A    Yes 
^1'  ^"  *^<^/o'i*f  Pondence  with  the  examiners  in  relation  to'reports 

wi?h  th.  ?hfi'f  i  ^l  ^y^^''^'^'^^  of  reports,  and  are  afterwards  filed 
with  the  chief  clerk  in  the  regular  files  of  the  Bureau.  All  the  cor- 
respondence relating  to  insolvent  national  banks  is  filed  in  the  division 
ot  insoh^nt  banks.    All  the  unofficial  communications,  or  those  of  a 

hi  m V  own  roo^^^^      '^""^  '"  ^^^""^^  ^^  ""^  ^'''^''^^  secretary  in  the  files 

Q.  Have  you  directed  a  search  to  be  made  in  all  those  places '—A   I 
have  m  those  places,  and  in  every  other  division  of  the  office.     I  have 

lX^::!tf^  ^"^^^^  f  ^^^^^^  *^^«^  communications,  directh  g 
mm  to  Juriiisli  Hie  correspondence. 

Q.  Tliat  is  of  some  little  imijortanee.    Will  you  jri  ve  me  the  names  of 

the  sentlemen  who  h.ye  charge  of  that  correspondence/aud  upon  Xm 

ot-"enortv1r^^^^  ff-^h^'-  t'-T^'^  ^P''*"'  «"-*■  of  tlifdiS 
w  ?}?  im',  l^i'-  ^'\^.-  iMkms,  cliiet  of  the  orsanization  division;  Mr 
W.  W.  Hdridge,  chief  of  the  issue  division;  Mr.  George  W    Eobert 
son,  superintendent  of  the  redemption  division;  Mr.  f.   ()  ■EbaiiHi 
^^Twhn"    '"">'''"'  •'""!  ^-  ^-  Stoddard,  in  charge  of  iusolvm.t  talks! 
stittrd'him  rbafir      ^•"'^^''^'-y  •-^-  '^^'•-  T-  !••  Kane.    I  have  in- 

fi,.»:..wwr ''*'*""'•** '''*''f^,*^"  daily  <»mmnnication  between  your  of- 
flce  and  the  examiners  at  Philadelphia  during  the  (iiuincial  scare     Wa^ 

IX^tT  «'""»V""'"'*'T  ''*•'  ^""'  exaininers'iu  other  .-idestil.  fo  a 
general  way.    I  can  not  recall  just  how  general  it  was;  but  examiners 

^Srelei^eUier  ""^  ^""^  "'^™^  ^  ^  ""^  cond^ifiJ^SlL^ 

cit^es^l^Af  Yes  ^'s^r*"^*'^"  precaution  taken  at  that  time  in  the  reserve 

By  Mr.  Oox: 

faetthnf  H,l  '^t*r"  ^h'«h  was  read,  where  attention  was  called  to  the 
loans  tt«n*'"^*®"'""''f:^''?'"»°'^^'°l*tod  the  law  in  getting  larger 

weTe  those  plrtier''"  ^^  '""^  '*'"'*"'  '  """"'  ""^^^  '^""^  ^1»'> 
and  Ml?  Lueari57,m '''^*"^  "'*"''  "^  ^''^"'  ^^'-  ^anamaker  $80,000, 
hibit  No^V  ^Th  ^'"f  """I  to  this  report  of  October  2,  1890,  being  Ex- 
contihK  t  .'.f"'/'f*®'  '"'J,'^'*  «e«n»sas  if  the  report  as  now ,, resented 

was  re  lut^    3h  """'    '"  f=?f' '  '•"'>»^«  schedules.-A.  The  report 
Ti   m,'"""",  ami  they  entered  it  as  correct. 

V.  ihen  the  report  was  corrected  ?— A.  I  suppo.se  .so. 


•  'I 


r' 


riMMIMHt 


102 


INVESTIGATION   OF    NATIONAL   BANKS. 


J       1 


Exhibit  1,  April  29,  1S92. 
N(..  of  Bank,  2291. 
[Use  tho  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printetl  items.] 

{eport  of  the  coudilion  of  "  The  Keystone  National  Bank,''  at  Philadelphia,  in  the  State 
of  renna.,  at  the  clone  of  business  on  the  'H  day  of  Ootoher,  1890. 


I 


Cb. 


llesources. 


1 .  Loans  and  discounts  (see  schedule) . 

2.  l)v«Tdr!itts  (see  scbe«lule) 

a,  r.  S.  l»i>nds  to  secure  circulation 

(par  value)  —  per  cents  — per 
ivftntfl  ..->..•■  «••••••-•-••••••••■ 

4.  U.  S.  bonds  to  secure  deposits  (par 

value)  —  i>er  cents 

5.  U.  S.  bonds  on  hand  (par  value)  — 

per  cents 

6.  Stoika,     securities,     judgments, 

claims,  &c.  (see  schedule) 

7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  Due  from  other  national  banks... 
0.  Due  fnim  State  and  private  banks 

and  bankers 

10.  Hanking  house 

11.  Furniture  and  tixtures 

12.  Other  real  estate  and  mortgages 

owned  (see  schedule) 

i:*..  Current  e.vpenses  and  taxes  paid. 
14.  Premium  on  bonds  for  circulation 

$  ;  premium  on  other  U.  S. 

iMUids,  $ 


Dollars. 


1,157,924  54 
1,631.24 


50,000 


15.  Checks  and  other  cash  items  (see 

Hchedule) 

16.  Excdiiuiges  for  clearing  house 

17.  Bills  of  other  banks 

18.  Fractional  paper  currency,  nick- 

els, and  cents 

19.  Specie,  viz: 

Gold  coin ?    24,000 

(Jold   Treasury   certifi- 

<;ates $ 

Gold  clearinghouse  cer- 

tificates... $    35,000 

Silver  dollars $      9,  SOD 

Silver  Treasury  certiti- 

cates  $ 

Fractional  si ver  coin.-.$      2,200 


104,  796.  59 
187, 655. 43 

;{2, 398.  m 

10,000 
11,  527. 72 
1,000 


34, 175.  77 
140,631.04 
7,500 

2, 1?J.  84 


Liabilities. 


1.  Capitail  stock  jiaid  in  — 


2.  Sundus  fund 

3.  Unuivided  profits. 


4.  Circulating    notes 
received       from 

Comptroller 

Less  am't  on  hand 
and  in  Treasury 
for  redemption  or 
in  transit 


Dollars. 


500,000 

100,000 
28, 509. 74 


5.  State  bank  circulation  outstand- 
ing   

G.  Dividends  unpaid 

7. 


Individual  deposits 
subject  to  check .  .$1, 137, 706. 14 

8.  Demand    certifi- 

cates of  dei)Osit . .  .$ 

9.  Time  certiticates  of 

deposit $ 

10.  Certilied  checks 

11.  Cashier's      checks 

outstanding;  tell 

er-8  d  uc  bifis $      84, 389. 40 


45,000 


1,004 


20.  Legal-tender  notes 

21.  I-nited   States  certificates  of  de- 

jmsit  for  legal-lender  notes  (Sec. 
5193.   Rev.  Stat.) 

22.  Kedemption    fund     with    TJ.     S. 

Treasiirer  (not  more  than  5  i>er 
rent  <m  circulation) 

23.  Due  from  V.  S.  Treasurer  (other 

than    'i    i)er    cent    redemption 
fund) 


Total. 


71,000 
139,000 


2,250 


12.  Unite<l  States  deposits 

13.  Deposits  of  U.  S.  disbursing  offi- 

cers   


1,222,095.54 


14.  Due  to  approved  reserve  agents 

(.see  schedule) 

15.  Due  to  other  national  banks 

16.  Due  to  State  and  private  banks 

and  bankers 


1,953,664. 80 


17.  Notes  and  bills  rcMliscounted 

18.  Hills  payable 


4.3,274.30 
13,721.16 


Total 1,953.664.80 


1  .Jno  Haves,  casli'r  of  "The  Keystone  National  Bank,  l»hiladelphia,  Penna.,'  do  solemnly  swear 
lat  the'above  statement  is  true,  to  the  liest  of  my  knowledge  and  belief,  and  that  the  schwlules  on 
ick  of  the  report  have  been  carefullv  tilUnl  out  and  fully  and  correctly  represent  the  true  state  ot  tlie 


that 

back  of  the  repor 

sevenil  matters  therein  contained. 


Jno.  Hayes.  Cathier. 


Conect.    Attest ; 
(Signed) 


G.  B.  HAINE.S, 

G.W.  Marsh, 
Samuel  LiM' AS, 
•  i/irectora 

St.vte  OK  Penna.,  Covnty  of  Philmla.: 

Sworn  to  and  subscribed  befoi-e  nu'  tliis  11  day  of  Oct..  1890. 
"^,   j  .loHX  W.  Uakko.v,  ^otary  ruhue. 

Must  be  acknowledged  before  an  otlicer  using  an  official  seal.— See  act  approved  Teh.  26,  1881. 


INVESTIGATION   OF   NATIONAL   BANKS. 


103 


[Fill  all  schedules,  writing  in  the  word  "  none  "  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 
Loans  and  discounts. 


On  demand,  on  U.  S.  bonds 

"  "        "   stocks,  bonds,  and  other  personal  securities. 

On  time,  paper  with  two  or  more  indiviclual  or  firm  names. 


$ 

$127, 935. 67 

$645,  500. 43 


"      "     single-name  paper  (one  person  or  firm)  without  other  security I    $341, 371  08 

'*      "      secured  by  stocks,  bonds,  and  other  personal  securities '    $  43, 117  36 

"      "     on  mortgages  or  other  real-estate  security  (.see  schedule) ^. 


Total. 


Included  in  the  above  are — 

Bad  debts,  as  delined  in  section  5204 Rev.  Stat.    $ 

Other  suspended  and  overdue  ])ai>er $14, 293. 64 

Liabilities  of  directors  (individual  and  firm) 
aspayesr $47,200 


Enter  the  amount  in  each  of  these  three 
items  or  write  in  the  word  "none" 
if  there  is  no  amount  to  enter. 


Loans  exceeding  the  limit  prescribed  by  section  5200  [of  the  Revised  Statutes,  including  amounts  which 
exceed  this  limit  due  from  State  and  private  banks  and  bankers. 


Name  of  borrower. 


J.   Wanamaker 

Est.  J.  C.  Lucas , 


Enter  full 

amount  of 

loan. 


.$80, 000.  00 
$57,  736. 18 


Name  of  borrower. 


Enter  fiUl 

amount  of 

loan. 


None. 


Stocks,  securities,  judgments,  claims,  <£c. 
Balances  due  from  or  to  approved  reserve  agents. 


Enter  name  and  location  of  bank. 


From— 

Tradesmen's  N.  Bk 

Chase  N.  Bk 


Amount.    |     Enter  name  and  location  of  bank.     I  Amount. 


51, 655. 45 
53, 141. 14 


To— 


Cheeks  and  otiier  cash  items. 


Checks  and  drafts  on  banks,  &c.,  in 

this  city 

Checks  and  drafts  on  other  banks 


37, 175. 77 


Average  reserve  and  interest.— Average  reserve  for  last  30  days  (in  bank  and  with  reserve  a«rentm 
Je'^cent?'  ^'  """^      '^'^'*"'  ^°*  ^""^  ^^^^'*''    '^^^  ^^igliest  rate  of  interest  S  by  thrban"k°s  3 

Overdrafts. 


Secured : 

Standing  12  months  or  over. 

^'  g        11  ti 


Temjwrary 


Unsecured : 

Standing  12  months  or  over. 

6         4;  .. 


Temporary 


1,631.24 


Othet*  real  estate  and  mortgages  owned. 
None. 

Loans  and  discounts  secured  by  m-ortgages  or  other  real  estate  secunty* 
None. 

Indorsed: 

[Banks  will  not  fill  up  iudor.sement.] 
^'o.  of  bank .    Report  of  The of ,  ,  18_>. 


m 


fit 


\ 

X 


ii 


104 


INVESTIGATION   OF   NATIONAL   BANKS 


INVESTIGATION   OF   NATIONAL   BANKS. 


105 


By  Ml.  Gate: 

Q.  Ill  the  letter  you  read,  did  Mr.  Drew  say  tliat  the  sales  in  Mr. 
Waiiamaker's  store  amounted  to  $70,(M)0  a  day"? — A.  Yes,  sir.  They 
are  stated  at  $1,(M)(),()0(»  a  mouth. 

Phiij^delphia,  Nov.  20,  1890. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Cnrrenvy,  Wmhingtony  I).  C: 

8iR :  I  have  the  honor  to  report  that  the  late  fiuancial  disturbances  have  as  yet 
not  affected  seriously  any  of  the  national  banks  in  this  city,  although  the  Clearing- 
House  Association  began  yesterday  to  issue  loan  certificates  to  such  banks  as  (lesiro 
the  same.  The  aniouut  of  su«'h  i-ertiticates  issued  to  the  close  of  business  this  day 
is  some  $4,500,000.  That  the  banks  will  almost  universally  apply  for  them  is  prob- 
able. This  will  enable  them  to  aid  their  borrowers  and  to  pay  balances  with  the 
clearing-house  without  employing  money. 

The  failure  here  to-day  of  "  Walker  Brothers"  was  announce<l  this  noon.  Several 
of  the  banks  here  have  their  paper  under  discount,  but  all  with  collaterals.  It  is 
regardetl  as  a  very  serious  failure.  It  is  the  oldest  banking  firm  in  the  country,  hav- 
ing been  established  in  1816. 

I  am  in  daily  conference  with  the  clearing-house  committee,  and  will  notify  you 
of  any  further  develojiments  likely  to  affect  national  banks  here. 
Very  respectfullv,  ' 

W.  P.  Drew, 
Xat.  Bank  Examiner. 


November  22,  1890. 
Mr.  William  P.  Drew, 

Examiner  of  National  Banls,  Philadelphia,  Pa.  : 

Sir:  I  am  in  reeeijit  of  your  favor  of  the  20tli  instant,  giving  me  information  as 
to  the  situation  in  Phihnlelphia.     This  is  tinirly,  and  1  desire  you  to  write  me  each 
<lay  during  the  continuance  of  the  ])resent  stringency  in  the  money  market  as  to  all 
the  facts  bearing  npon  the  situation. 
N'ery  respectfully, 

E.  S.  Lacey, 

Comptroller. 


[Telegram. 


PfllLADELPHIA,  NoV.  f?4,  1890. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Carrenei/,  Wash intf ton,  D.  C: 

General  situation  improved.     Still  much  uuea8in4>ss.     Banks  all  right. 

W.  V.  Drew. 

[Telegram.] 

Philadelphia,  Nor.  25,  1890. 
Hon.  E.  S.  Lacey, 

Comptroller,  fVaHhinf/ton  : 

Situation  still  improving  and  better  feeling  prevails. 

W.  P.  Drew, 
Nat.  Bunk  Examiner. 

Philaua.,  Pa.,  Nov.  25,  1890. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Cnrrency,  Washington,  D.  C.  : 

Sir:  I  have  to  report  that  the  financial  condition  here  has  steadily  im]>roved.  The 
stock  market  is  stnmger,  and  while  money  is  very  scarce,  the  banks  are  able  to  ren- 
der accommodations  which  are  necessary  to  prote<?t  customers. 

I  inclose  a  copy  of  the  ••agreement"  under  whi<'h  clearing-house  loan  certif^ates 
are  issued  to  the  banks. 
Very  respectfully. 


I  will  advise  you  daily  of  the  conditi**!!  of  affairs  here. 


W.  P.  Drew, 
Nat.  Bank  Examiner. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 
Mr.  .Tno.  Hayes,  ,      Washington,  November  25, 1890. 

Cashier,  Keifstone  NaVl  Bank,  Philadelphia,  Penna.: 
Sir:  Proof  of  puldication  of  the  report  of  the  condition  of  your  bank,  as  made  to 
been^received      ^  business  on  Thursday,  the  2d  day  of  October,  1890,  has  not 

Vonr  attention  is  particularly  called  to  the  requirements  of  the  law  with  re«^ard  to 
forwardnig  report^    and  to  the  penalty  for  failure.     (See  section  5211  and  section 
021.1,  V.  S.  Itevised  Statutes.) 
Respeitfnlly,  y«»nrs, 

E.  S.  Lacey, 
Comptroller. 


Hon.  E.  S.  Lacey,  Philadelphia,  Nov.  28.  1890. 

Comptroller  of  the  Currency,  Washington,  D.  C: 
Sir:  The  financial  condition  here  remains  unchanged  since  my  last  report  with 
the  exception  of  the  failure  to-day  of  -B.  K.  Jamison  &  Co.,"  bankers  aiTbrokers 
This  firm  IS  an  old  one  and  much  sympathy  is  felt  for  its  embarrassment.     The  im^ 
mediate  cause  of  suspension  appears  to  have  been  failure  to  secure  loans  on  such 
securities  as  they  i)ossessed.  i"«tu»  ou  siu  n 

Much  anxiety  continues  to  be  felt,  not  so  much  as  to  the  stock  market,  which  con- 
tinues to  improve,  but  i»articularly  as  to  apprehended  embarrassments  of  merchants 
and  maiiufacturers,  should  nnmey  continue  to  be  as  scarce  as  it  is  at  present  So  far 
as  the  banks  here  are  .oncerned  I  believe  they  are  in  no  danger.  This  opinion  is 
necHon  '"®  ^  clearing  house  committee,  with  whon?!  am  in  daily  con! 

The  head  of  the  house  of  ''B.  K.  Jamison  «fe  Co."  is  a  director  in  the  'Uth  Street 
Jlle  fa!  W  '  *^''''  '^^'  afternoon  and  learned  that  it  was  not  ai^et^d  by 

Much  uneasiness  is  felt,  ami  a  fear  of  what  '^a  day  mav  brine  forth  " 
\  ery  respectfully,  '^        ^  e  • 

W.  P.  Drew, 
Nat.  Bank  Examiner. 


Hon.  E.  S.  LaceyI  Philadelphia,  Nov.  30, 1890, 

Comptroller  of  the  Cnrrency,  Washington,  D.  C,: 
*i«l^?i' B  ^1°^  1*"*  ''"iP«r«  seriously  involving  the  condition  of '^  The  Kevstone  Na- 
comritinn'^nf  fh^'T' l^^^  *^  the -Evening  Telegraph"  a  short  statement  of  the 
hereto  Dnrin'  v^.«^'  \'''''  ''^'*^""*  particularizing  any.  I  append  the  statement 
!m!S'  ^^"^"^Sr.  yesterday  many  rumors  were  in  circulation  respeetino  the  bank 
n^i  1:  ^a"^^  going  so  far  as  to  assert  that  there  was  a  run  on  the  bank,  and  that  the 
bank  h^A  suspended.  None  of  the  reports  were  true.  The  bank  had  a  a  liet  dtv 
was  a  cre.^/0,' at  the  clearing  house,  and  had  a  sure  part  of  itrreserve  ^Tsilence 


im nossiblAVn  ..*  iT  V^  1  ^  a^  '^  ^-  *^^^'°^  ''^  "'"^*'  uneasiness  abroad,  and  it  i 
.filv  ?  V®  predict  when  and  where  it  may  culminate.  1  will  send  von  a  renor 
dltypt^^^^^^       over,  and  will  telegraph  yo'u  <luring  the  day  of  a^^^^.^oS 

The  bank  will  have  all  the  snpport  that  the  clearing  house  ean  render 
>  ery  respectfully, 


t 

ble 


>N'.  P.  Drew, 

-V.  li.  Exmr. 


Shonld  it  be  necessary  to  telegraph  me  to-morrow  .Ini-inji  biiRine^s  hours  iile.se 
»ei,,l  .are  Karn.ers  &  Mochai.i.-s'  Na't.  Bauk,  afterwards  u.y  house;3;93«  Chitn'i.t  St! 


m 


mtm 


m 


106 


INVESTIGATION   OF    NATIONAL    BANKS. 


ITeleijram.]  ^  ^^„^ 

Phila.,  Dec.  1, 1890. 

Hon  E.  S.  Lacey, 

Compt.  of  Ctin'ency,  Wafth'n  : 

Run  continued  until  close  of  business.     All  demands  promptly  met. 

W.  P.  Drew. 


[Telegrara.] 


Hon.  E.  S.  Lacey, 

Conir.  fyaah'n : 
Run  renewed  this  morning.     Prospects  better. 


[Telegram.] 


Hon.  E.  8.  Lacey, 

Comptroller'  of  Currency,  Waaiyn. 


D.  C: 


Run  practically  over  and  l»auk  victorious. 


Phila.,  Dec.  2y  1890. 


W.  P.  Drew,  Exmr. 


Phila.,  Dec.  2,  1890. 


W.  P.  Drew. 


Philadelphia,  Dec.  1, 1890. 

Hon.  E.  S.  Lacey, 

CompiroUer  of  the  Currency,  Washington,  D.  C: 

Sir:  I  teb'graphed  you  twice  to-day  of  the  ''run"  on  ''The  Keystone  Nat.  Bank" 
of  this  city.  When  the  doors  closed  at  three  o'clock  the  bank  had  paid  df])OS- 
itoi-s  aouiti' -^100,000,  but  there  was  a  large  gathering,  piobably  of  100  people,  still 
claiuorin**-  for  their  money.  The  directors  and  some  friends  of  the  bank  are  in 
session  to-night  deliberating  whether  the  bank  shall  open  to-morrow  morning  or 
not  Unless  arrangements  can  be  etfected  by  which  the  bank  can  have  a  large  sum 
of  money— not  less  than  $100,000— \t  is  probable  that  tlu^  bank  will  not  open.  The 
situation  here  has  been  very  much  aggravated  by  the  occurrences  of  to-day,  and 
rumors  are  rife  of  intended  ''raids"  on  some  of  the  other  banks  here.  The  city 
treasurer  has  a  deposit  with  "The  Keystone  Nat.  Bank,"  $400,000.  He  did  not 
draw  on  that  at  all  to-day,  and  it  is  understood  that  he  will  not  do  so  for  a  short 
time  longer.  The  feeling  here  is  one  of  much  uneasiness,  particularly  among  depos- 
itors who  seem  to  have  lost  confidence  in  all  moneyed  institutions  carrying  deposits. 

I  will  telegraph  you  freely  to-morrow  and  write  a  report  of  the  day's  events  affect- 
ing the  situation  here.  .    .  X     ^Xl      .        11 

I  send  you  an  '^Evening  Telegrajdi"  of  to-day,  giving  an  account  of  the  trouble 
at  the  Keystone  Nat.  Bank. 
Very  respectfully, 

•^       '  ^ '  W.  P.  Drew,  Exmr. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Cnrrency,  Wash.: 

Run  is  persistent,  result  in  doiibt. 


Phila.,  Dec.  1, 1890. 


W.  P.  Drew. 


Treasury  Department, 
Office  of  Comptroller  ok  the  Currency, 

Wanhhuiton,  D.  C,  December  1,  1890. 


Sir:  It  appears  from  the  report  of  condition  of  your  bank  on  October  2, 1890,  that 
the  following  loiins  in  excess  of  one-tenth  of  its  capital  stock  have  been  made,  viz: 

J.  Wanamaker '^S'SSS'JS 

Est.  J.  C.Lucas 57,7iJb.l8 

Section  .5200,  United  States  Revised  Statutes,  prescribes  that  "the  total  liabilities, 
to  any  associati<m  of  any  person,  or  of  any  company,  corporation,  or  firm  for  money 
1>orrowe<l,  including,  in  the  liabilities  of  a  company  or  firm,  the  liabilities  of  the 
several  members  thereof,  shall  at  no  time  exceed  one-tenth  part  of  the  amount  ot 


the  ca]>ital  stock  of  such  associaticm  actually  i)aid  in." 
Respectfully  yours, 

Mr.  G.  W.  Marsh, 

President  Keystone  National  Hank,  Philadelphia,  Pa. 


E.S.  Lacey, 

Comptroller. 


INVESTIGATION   OF   NATIONAL   BANKS. 


107 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  December  1,  1890. 
Sir:  In  your  report  of  condition  for  October  2,  1890,  the  item  of  "checks  and  other 
cash  items  "  is  entered  on  the  face  of  the  same  at  $34,175.77,  while  the  schedule  on 
back  shows  an  amount  of  $37,175.77. 

You  are  respectfully  requested  to  forward  a  correct  schedule  of  the  items  com- 
posing the  amount,  at  your  earliest  convenience,  and  also  to  see  that  future  reports 
are  correct  in  this  respect. 

Respectfully  yours,  r.  m.  Nixon, 

Mr.  John  Ha.^s,  ^'^"'^  Comptroncr. 

Cashier  Keystone  Xat.  Bank,  Philadelphia  Penna. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  December  1,  1890. 
Sir:  The  report  of  condition  of  your  bank  on  October  2, 1890,  is  received  in  which 
no  entries  appear  in  the  following  schedules  on  the  back  of  the  report,  "Bad  debts  " 
as  defined  in  Section  5204,  Revised  Statutes.  ' 

Please  inform  me  by  return  mail  what  amounts,  if  any,  should  be  entered  in  these 
sciieduies. 

You  are  respectfully  requested  in  future  to  fill  out  all  schedules  on  the  back  of  the 
report,  writing  in  the  word  "none"  where  there  are  no  items  to  be  entered. 
A  careful  compliance  with  this  request  will  save  correspondence. 
Respectfully  yours, 

R.  M.  Nixon, 

Mr.  John  Hayes,  ^'^"'^  Comptroller. 

Cashier  Keystone  Nat.  Bank,  Philadelphia,  Penna. 


Philadelphia,  Dec.  2, 1890. 
Sir:  The  run  on  the  Keystone  National  Bank  has  ceased  to-day  at  one  o'clock 
J  he  bank  met  every  demand  promptly,  and  a  considerable  amount' was  received  on 
deposit  to-day.    It  is  the  opinion  of  the  C.  H.  committee,  as  well  as  all  concerned 
that  the  excitement  is  passed.  ^xntu. 

As  soon  as  I  am  able  to  obtain  the  facts  in  detail  relating  to  the  inception  and 
progress  of  the  affair  I  will  communicate  them  to  you. 

Comptroller  of  the  Currency,  Washington,  D.  C. 


December  4,  1890. 
Dear  Sir:  It  is,  as  I  know,  your  custom  to  make  frequent  calls  upon  banks  under 
tio^.  ^"If  iv.^f ,<^»i  at  times  when  you  are  not  engaged  in  making  regular  examina- 
tions Has  It  been  your  practice  on  these  occasions  to  call  for  their  balance  sheets 
^«Mn,^oIf  "?^''  ?"?  V'^Vepi  giving  information  as  to  their  condition,  and  has  any 
catedf  '*^-'®^^®'^  to  giving  you  tree  access  to  their  affairs  in  the  manner  indi- 

Very  respectfully,  e.  S.  Lacey, 

Mr.  W.  P.  Drew,  Comptroller. 

National  Bank  Examiner,  3939  Chestnut  street,  Philadelphia,  Pa. 


Hon.  E.  S.  Lacey,  Philadelphia,  Dec.  6, 1890. 

Comptroller  of  the  Currency,  Washington,  D.  C: 

"c^asl^'lniVu,!^''  ^^^^^f  ^?  r,^*'l?«^  herewith  a  statement  showing  the  condition  as  to 
^dhiflt  m1  ^91^^'^'  ?^*^'^  Keystone  National  Bank  of  this  city  on  the  1st  and 
-a  mst   (days  of  the  run)  and  at  close  of  business  to-day. 

«"iinp]l  il  ?  ^^'^^  t^"^*  '^'^''i"^'  *^'^  ''^""'^"  the  bank  paid  in  deposits  $374,000,  and  has 
gained  m  deposits  since  the  run  $124,000.  f  <p  •  ,uv;v,  auo  iia.s 

on  a"denm!t''wm  ^I'l*"  ^'''''^  *"?]'  out  clearing-house  loan  certificates  in  amount  $365,000, 
•>0  ?ill  w  1   ^ith  the  committee  of  $450,000  bills  receivable,  having  previoiislv  (\ov 

To  o;lw  .f  ?"*  ?^^'^  ^"  *^'^l^««i*  of  $200,000  bills  receivable."  ^  '  ^        ' 

flesh  i\elaJu^'^l  during  the  run,  three  depositors  ( Avo  of  them  directors)  placed 

c»u  iieposits  of  money  m  the  bank,  in  amount  $70,000. 


>l 


'W 


,.l|.UJ'Jt»J 


108 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


109 


Tin-  rit.v  fci«}iHurer  concluded  to  make  no  draftw  on  his  deposit  of  $1(X),000  in  tlic 
bunk. 

This  run  was  caused  by  ruinoivs  which  have  been  in  circulation  lor  several  weeks, 
and  especially  during  the  present  financial  stringency  aflfccting  the  s(dvency  of  the 
bank,  alb^oing  large  loans  of  a  doubtful  character  by 'the  bank,  referring  to  the  debt 
of  the  estate  of  John  C.  Lucas,  dec'd.  late  president  of  the  bank.  This  it  is  nuder- 
8to(Ml  will  b(^  ])ai<l  off  before  long:  iu  <*««''•  In  addition  to  the  $57,00()  by  that  estate, 
as  reporti'd  in  my  last  report  (July  3,  ult.)  other  paper  in  the  bank  amounting  to 
some$72,()(X)  has  )»een  assumed  by  the  estate;  total,  $129,000,  in  which  Mr.  Lucas 
was  interested.  The  administrators  offer  to  turn  over  to  the  bank  and  to  purchase 
for  relief  of  the  bank  2,000  shares  of  the  stock  of  the  bank  belonging  to  the  estate, 
and  also  the  '•.!.  V.  Lucas  buihling,"  a  new  and  elegant  structure  opposite  the  II.  S. 
Mint,  and  occupied  in  part  by  the  bank.  This  property  is  «;asily  worth  $"100,000,  but 
it  is  nioi-t.gaged  for  $225,000.  I  regard  the  Lucas  debt  as  certain  of  payment  in  full, 
as  so<m  as  a  '-turn"  can  be  made.     Interest  on  the  entire  amount  is  regularly  paid. 

I  am  strongly  in  hopes  that  when  the  present  financial  troubles  are  passed  a  movt^- 
ment  will  be  madr  to  place  the  bank  in  new  hands  and  under  a  more  efhcient  and 
satisfactory  management. 

1  do  not  consider  th«^  bank  to  be  yet  free  from  danger.  Its  peril  consists  now  in 
fsiiling  to  satisfy  the  adjustments  of  the  «learing  house  as  to  its  settlements.  IJut  it 
is  now  rather  early  after  the  run  to  predict  with  absolute  certainty  what  the  final 
result  will  be. 

1  will  kee])  you  advised  of  any  changes  in  the  situation.  I  shall  soon  make  a  regu- 
lar examination  of  the  bank. 

The  general  situation  here  continues  to  cause  much  uneasiness,  not  to  say  anxiety. 
Very  respectfully  yours, 

W.  P.  I)Rf:w, 

Condition  of  "  the  cmh  "  and  "  the  deposits^'  of  the  Keystone  National  Bank,  of  PhiJadcl- 
phia,  Pa.,  10  a.  m.  Dec.  2,  ,?  p.  m.  Dec.  2\  S  p.  m.  Dee.  0,  1890. 

DQi\  1,  10  a.  m.  Cash  in  bank  $95,000,  N.  Y.  $8<i.000 .$181, 0(H) 

'*               Deposits lO'VoOO 

Dec.  2,  3  p.  m.  Cash  in  bank  $13,000,  N.  Y.  $1«,(KX) .' '."  '   .31,'  0(h> 

•'         "              Deposits 653,'  0(X> 

Dec.  6,  3  p.  m.  Cash  in  bank  $19,000,  N.  Y.  $31.000 50,000 

"         '*              Deposits Tn\m) 

Clearing-house  balances : 

10  a.  m.,  Dec.  1,  Dr 95.000 

"     ''        Dec.2,Dr 270,000 

"     '<■        Dec.  3,  Dr 102,  (XM) 

''     "        Dec.  4,  Dr 42,000 

"     ''        Dec.  5,  Dr 17,000 

"     '^        Dec.G,Dr I^^'cKK) 

TUEASL KY   DePA KT.M KNT, 
OfFK'I:   of  COMPTROf.LER  OF  THK   CuilHENC^V, 

IVanhinqion,  J).  (\,  Iter.  S,  1890. 
Mr.  G.  W.  Marsh, 

President  Kei/stone  yulional  Bank,  Philadelphia,  Pa.: 

SlU:  Yon  are  respectfully  informed  that  a  copy  ot*  the  list  of  the  names  of  the 
shareholders  of  your  association  for  the  current  year,  as  required  by  Section  5210,  U. 
S.  Kevised  Statutes,  has  not  been  received  at  this  othce.  Blanks  for  this  purp<»se 
were  mailed  to  the  cashier  of  your  association  in  .June  and  in  August  last.  Another 
blank  is  enclosed  herewith,  which  you  are  requested  to  have  promj)tly  executed 
(<luly  verified)  showing  the  names  and  residemes  of  all  the  shareholders  of  your 
association,  with  the  uuml)er  of  shares  owned  by  each  on  the  first  Monday  of  .July, 
1890,  and  returned  to  this  office  at  as  early  a  date  as  possible. 

Kes])ect fully  yours,  '  E.  S.  Lacey, 

Comptroller. 

Philadelphia,  Dec.  S,  1890. 
Hon.  E.  S.  Lacky, 

Compiridhr  of  the  Curretuif,  Washington,  D.  C: 

Sir:  There  has  been  no  material  change  in  the  situation  here  since  my  letter  to 
you  of  the  (>th  inst. 

There  is  much  ai>i>reheu8iou  felt  that  mercantile  houses  will  l)e  seriously  embar- 
rassed unless  the  money  market  beeomes  nunh  easier,  of  which  there  does  not  seem 
to  be  any  prospe<t  in  the  innnediate  future. 

Very  respectfully,  w.  P.  Drew, 

A^at.  Bank  Kxm'r 


Hon.  E.  S.  LACEY,  Philadelphia,  Dec.  0,  1890, 

Comptroller  of  Currency,  Washington,  D.  C. : 

Sir  :  To-day  I  have  been  engaged  in  ascertaining  the  general  condition  of  the  Key- 
stone National  Bank  here,  and  find  that  it  has  improved  somewhat  daily  since  the 
run  closed. 

At  ch»se  of  business  to-day  its  deposits  were  near  $780,000,  and  its  reserve  in  aq- 
(jreqate  short  only  some  $16,000.  •' 

the  debt  of  the  Lucas  estate  (direct  $50,000,  indirect  some  $80,000)  is  in  a  fair  way 
of  payment.  I  think  it  will  be  settled  fully  during  this  month,  without  any  loss  to 
tne  DanK. 

in^h^^^c^r  '^'T^  a°^«»f «  *o  «««ie $60,000  fairly  good.  The  bank  has  had  issued 
to  it  $600,000  C.  H  loan  ceHs^nd  has  paid  off  $25,000  of  them.  To  secure  these  the 
H  «  ;n 'Him  r^  ^""l'^'  $843,000  discounted  paper  of  the  bank  and  $100,000  securi- 
ties and  $100,000  notes  of  two  directors  in  addition,  the  former  contributed  for  the 
IMirpose  by  a  friend  of  the  bank  and  the  latter  held  by  the  committee  as  additional 
security  The  settlements  of  the  bank  at  the  clearing  house  since  the  run  have  been 
sat'isiact'Ory. 

Unless  some  financial  cataclysm  makes  general  havoc,  this  bank  will  survive  the 

storm  and  eventually  be  stronger,  and,  I  hope,  more  efficiently  managed  than  before. 

rhe  general  feeling  here  to-day  has  been  one  of  some  encouragement,  but  mercan- 

ili!,n5"  *''''If^'"'*'"*^-.T''  ^i^'^'"^^-     ?'^\^^^  ^^^'^^  ''«*^"  $7,200,000  C   H.  loan  certificates 
ceTved  them  ^  <^^^^^^t^^  here,  and  the  banks,  with  one  or  two  exceptions,  have  re- 
Very  respectfully, 

W.  P.  Drew,  Exmr. 

Hon.  E.  S.  Lacey,  Philadelphia,  December  10,  1890. 

Comptroller  of  the  Currency,  Washington,  D.  C: 
ho^'cfiil^eellni''  ''^^''^^  ""*  ""^^"^'^  '"^  *^^  financial  situation  here  beyond  a  slightly 

There  have  been  no  failures  of  any  kind  here  to-day 
loans^  ^'"^"^^  *"^^^  confident  of  taking  care  of  their  customers,  but  are  making  no  new 

The  Keystone  Nat.  Bank  settled  to-day  a  creditor  at  the  clearing  house 
Very  respectfully,  ® 

W.  P.  Drew.  Examiner. 


[Telegram.] 

Hou.  E.  S.  Lacey, 

Comptroller  of  Currency,   Washington,  D.  C: 
Financial  situation  here  steadily  improvm* 


^g- 


Philadelphia,  Dec.  IS,  1890. 


W.  P.  Drew, 
National  Bank  Examiner. 


"on.  E.  S.  Lacey,  Philadelphia,  Dec.  13, 1890. 

Comptroller  of  the  Currency,  Washington,  D.  C: 

«i^d  situa{?or''Thr''r^'r\'^'*^  slight  Imt  pronounced  improvement  in  the  finan- 
1,    n!  1         ?"•     ^^®  ^''^^^B  have  provided  for  their  regular  customers      Few  new 

!      ks^^;:e  '^if'f"/  ""^'  ''""'r^'  ^f?  ^'^«"  '^'  «^«^*  t"«^^  <^r  on  demand     Th" 
a<-  eidJ^;^^^^^^  t^^^*^"  ^"^^'•A  ^"^^"  certificates,  and,  when 

H.  loan  cStffieateHt  $V?5  ^^^  '"  ^^^'""""*  "'  depositors'  balances.   (Anit.  C. 

tirelv  f.  bf.      «^       r-^  '}'"''^^  on  them  either  m  currency  or  N.  Y.  exchanges"  is  en- 
I  an^ 'Ir V°'^vF^'''''^^>^  ^^^^^^^^  ^»«^'  that  on  that  day  ''The  W.fs tern  Nat 

navrn.n/-^*''^  ^"""^  '^"*  *^  "'^^^^  Central  Nat.   Bank"  of  this  city    by  exmess  for 

latter  was  IcceAid^  '''"  '^''^^^'''  '''"  ^  '^^""^^  ""^  ^^^  ^'^^^  "^  payment,  which 

inak^era's^rrno^^^^^  implication,  in  the  same  article  in  the  Sun  to  John  Wana- 

f r  as  reported  embarrassed  is  likewise  wholly  without  foundation. 


h\ 


m 


i 


vsa 


110 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF    national"  BANKS. 


Ill 


'I      ^ 


I  bavo  learned  coiifidentially  from  undoubted  authority  that  the  amount  of  that 
gentleman'8  pa]>er  outstanding  is  very  much  less  than  usual  at  this  time  of  the  year, 
and  that  his  aflaiiH  are  in  a  very  comfortable  position. 

His  retail  store  here  is  bringing  daily  from  sales  at  the  counters  more  than  $70,000 
cash.  The  receipts  last  month  were  largely  in  excess  of  $1,000,000,  and  this  month 
will  reach  $2,000,000.     He  is  regarded  here  by  the  banks  as  entirely  prosperous  and 

sound. 

Very  respectfully,  ^^,    ^    ^^^^^ 

Xaf.  Bank  Examiner. 

p.  S.— The  settlements  at  the  clearing  house  of  the  Keystone  Nat.  Bank  during 
the  week  have  been  satisfactory,  and  it  is  recovering  quite  rapidly  from  the  deple- 
tion caused  by  the  run. 


[Telegram.] 


Philadelphia,  Dec.  16^  1800. 

Hon.  E.  S.  Lactky, 

CompiroUn',   JVaxh  inyfov  : 
Situation  much  improved.     Better  feeling  all  round.     Moris  &  Smith,  brokers, 
failed,  three  hundred  thousand. 

in/ .  L  .  UI'EMr . 


[Telegram.] 


E.  S.  Lacky, 

Comptroller,  IVashiuyton : 

Situation  continues  to  improve. 


PiiiLADELPiiiA,  Dec.  17,  ISOO, 


Clearfield  failure  affects  none  of  «mr  banks. 

W.  P.  Drew. 


Treasury  Depautment, 
Office  of  Comptroller  of  the  Currency, 

Washington,  December  17,  1890. 

Mr.  John  Hayes, 

Cashier  Kcifstone  .\V//7  Hank,  Philadelphia,  Penna.: 

Sir:  Proof  of  publication  of  the  report  of  the  condition  of  your  bank,  as  made  to 
this  oific*^  at  the  close  of  business  on  Thursday,  the  2nd  day  of  October,  1890,  has  not 

been  received.  .  .      ^  ^.     ,  -xi  m 

Your  attention  is  particularly  called  to  the  requirements  of  the  law  with  regard  to 
Ibrwardin*-  reports  and  to  the  penalty  for  failure.  (See  8ecti<m  5211  and  section 
5213,  U,  S.'^Keviscd  Statutes.) 

Eespec-tfuUy,  yours,  ^    ^    ^^^^^^ 

Comptroller. 
(Second  notice.) 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  Jan'y  17,  ISDl. 

Mr.  Geo.  W.  Marsh, 

President  Keystone  Xat'l  Bank,  Philadelphia,  Pa.: 

Sir:  Upon  examination  ot  your  report  of  condition  on  Dec.  19,  18JH),  it  is  found 
that  the  lawful  monev  reserve  of  your  bank  on  that  day  was  deficient  to  the  extent  ol 
$27,370,  and  under  the  provisions  of  section  5191,  U.  S.  Revised  Statutes,  it  becomes 
my  dutv  to  notifv  you  to  make  good  such  reserve. 

You  are  respectfully  referred  to  section  5191,  United  States  Revised  Statutes,  as 
amended,  which  contains  the  fcdlowing  provisions: 

''Whenever  the  lawful  money  of  any  association  in  any  of  the  cities  named  shall 
be  below  the  amount  of  twenty-five  ]>er  centum  of  its  deposits,  and  whenever  tlic 
lawful  money  of  anv  other  association  shall  be  below  fifteen  per  centum  of  its  deposits, 
such  association  sliall  not  increase  its  liabilities  by  making  any  new  loans  or  dis- 


counts otlierwise  than  h^  discounting  or  purchasing  bills  of  exchange  payable  at 
sight,  nor  make  any  dividend  of  its  profits,  until  the  required  proportion,  between 
the  aggregate  amount  of  its  deposits  and  its  lawful  money  of  the  United  States  has 
been  restored.  And  the  Comptroller  of  the  Currency  may  notify  any  association 
whose  lawful  money  reserve  shall  be  below  the  amount  above  required  to  be  kept  on 
hand  to  make  good  such  reserve."  , 

It  is  also  observed  that  the  average  reserve  of  your  bank  for  the  30  days  preceding 
the  date  of  report  (10)  was  below  the  per  centum  of  deposits  required  by  law 
Respectfully,  yours, 

E.  S.  Lacey, 

Comptroller. 

By  Mr.  DiCKEBSON : 

Q.  When  did  this  bank  suspend— as  I  liave  lost  the  date?— A.  It 
was  closed  by  my  order  on  March  20,  1891. 

By  the  Chairman  : 

Q.  I  want  to  get  some  figures  into  the  record  at  this  point.  I  will 
take  the  October  report,  and  you  will  take  this  report  of  December,  and 
we  will  compare  them.  The  report  of  condition  on  October,  1890,  re- 
ports the  amount  of  discounts  at  $1,157,124.05.— A.  The  renort  of 
December  19  stated  tlie  amount  at  $873,134.72. 

Q.  Overdrafts,  $1,631.21.— A.  By  this  report  it  is  $23,994.24. 

Q.  Amounts  due  from  approved  reserve  agents  in  the  October  report 
IS  $104,796.59.— A.  This  report  says  $40,810:24.  ^ 

Q.  Due  from  other  national  banks,  $189,655.42.— A.  Bv  this  renort 
it  is  $61,884.30.  ^      lo  icpun 

Q.  Due  from  State  and  private  banks  and  bankers,  $32,398.63  —A 
This  report  says  $46,701.67.  ' 

^o^'oS^^?^^""  ^"^'^  ^^^'^"^  ^"^^^  ^^^^^^  $34,175.75.— A.  By  this  report  it  is 
foy,o20.4D. 

Q.  IteiAS  of  exchange  for  clearing  houses,  $140,631.04.— A.  The  sum 
Here  is  «|pJJ7,t)o^,oo, 

^n^n.?^"^  ^^  ^*^®^  ^^^^^^  $765,000.— A.  By  the  December  report  it  is 

Q.  Fractional  paper  currency,  nickels,  and  cents,  $2,177.81.— ^A  Bv 
the  December  report  it  is  $1,351.46.  ^ 

Q.  The  specie  is  $71,000.— A.  In  the  December  report  it  is  $5,756.50. 
re  )    t 'r*    «?      legal  tender  notes  is  $139,000.— A.  In  the  December 

Q.  Take  the  other  side  of  the  account;  liabilities,  surplus,  $100,000 
in  October.— A.  In  December  it  is  $100,000.  i      ,  ^      ,infv 

$14 '84^905''"^'^'*^^^  ^'""^^^'^  ^^''^ '^ October,  $28,569. 74.- A.  December 
Q.  Dividends  unpaid^  $1,004.— A.  In  this  report  it  is  $6,486. 
W.  ihe  aggregate  of  individual  deposits,  cashiers'  checks,  or  tellers' 
due  bills  by  the  October  report  is  $1,222,095.50.— A.  By  the  Decem- 
ber report  they  are  $618,199.17.  xxcA^ecem 

OctobeTrf  ^rt^*'^"^^  ^^  ^  difference  there  of  $600,000  in  favor  of  the 

By  the  Chairman: 
in  ti;e'Decl^^^^^^^^  "^""^'^  I13,721.-A.  No  an.ount  is  stated 

De1e£/rlK^^  "'"'  ^^  $1,953,664.08.-A.  The 

be^^Pnnrf^'^'r'xT''^^^''''^?''''?^'^"'^  the  limit  disappears  in  the  Decem- 
"ci  lepoit.— A.  1^0  excessive  loans  are  stated  in  the  Decembei  report. 


in 


w 


■. 


l\ 


1 

'1 

'I,  il 


112  INVESTIGATION   OF   NATIONAL   BANKS. 

Exhibit  2,  April  29,  1892. 

No.  of  bank,  2291. 

[Use  tlie  blank  liue»  if  laoc^ssarj',  but  do  not  erase  or  cbaugo  any  of  the  printed  items.] 

Kepori  of  the  cimdiHon  of  '^  The  Keystone  National  Bank,"  at  Philada.,  in  the  State  of 
Penna.,  at  the  close  of  business  on  the  19  day  of  Decern.,  1890. 


De. 


Cs. 


Resources. 


1.  Loans  and  discounts  (see  sebedule) 

2.  Overdraft.s  (see  8«'bedule) 

3.  V .  S.  bonds  to  secure  circulation 

(par   value)   —   per    cents,    — 
p(i!r  (!ent« 

4.  U.  S.  bonds  to  seture  deposits  (par 

value)  —  per  ceuta 

5.  V.  S.  bonds  on  hand  (par  value)  — 

per  cents 

6.  Stocks,  securities,  claims,  etc.,  (see 

schedule) 


Due  from  approved  reserve  agents 

(see  schedule) 

Due  fnnn  otber  natitmal  banks 

Due  from  State  and  private  banks 
and  bankers 

10.  Banking  bouse $ 

11.  Furniture  and  fixtures $ 


8. 
9. 


Dollars. 


873, 134. 77  ! 
23,994.24  : 


rK),000 


12. 

13. 
14. 


15. 

1«. 
17. 
18. 

19. 


Other  real  estate  and  mortgages 
«»wne«l  (see  schedule) 

Current  expenses  and  taxes  paid. . 

Premium  on  bonds  for  circulation, 
$  Premium  on  other  U. 
S.  bonds,  $ 


40,810.04 
«1,884.30 

14,701.87 


10, 000 


9,  486.  ai 


Liabilities. 


1.  Capital  Block  paid  in. 


2. 
3. 

4. 


Surplus  fund 

tlnaivided  profits. 


Circulating  notes  rweived 
from  Comptroller •$ 

liess  am't  on  hand  and  in 
Treasury  for  ro«lemption 
or  in  transit $ 


State  bank  circulation  outstand- 
ing  


6.  Dividends  unpaid. 


1,000 


Checks  and  other  cash  items  (see 
schedule) 

Exchanges  for  clearing  house 

Bills  of  other  banks 

Fractional  paper  currency,  nick- 
els, and  cents *. 

Specie,  viz — 

(jold  coin $1, 623 

Gold      Treasury    certi- 
ficates   $ 

G<»1<1  clearing-house  cer- 
tificates  $ 

Silver  dollars $3, 000 

Silver  Treasury  certifi- 
cates   .' $ 

Fractional  silver  coin. .  .$1, 133. 50 


:{9. 
9. 


820.  46 
632.  86 
500 


1, 351. 46 


20. 
21. 


22. 


23. 


Legal-tender  notes 

United  States  certificates  of  de- 
))08itforlegal-tender  notes  (sec. 
5193,  Rev.  Stat.) 

Redemption  fund  with  U.  S.  Treas- 
urer (nt>t  more  than  5  per  cent 
on  circulation) 

Due  from  U.  S.  Treasurer  (otber 
than  5  per  cent  redemption  fund) 


5, 
42, 


756.50 
747 


2,250 


Total 1 ,  286, 070. 13 


8. 

9. 

10. 
11. 


12. 
13. 


14. 

15. 
16. 


17. 
18. 


Individual    deposits 

subject  to  check  . .  .$589,  311. 22 

Demand  certificates 
of  deposit $ 

Tiuje    certifii-afes    of 
depo.'iit $ 

Cert  ified  che«'k8 $ 

Cashier's  checks  out- 
standing  $  28, 887. 95 


United  Stjttes  deposits 

Deposits  of  U.  S.  disbursing  offi- 
cers  


Due  to  approved  reserve  agents 

(see  schedule) 

Due  to  other  national  banks 

Due  to  Statei  and  private  banks 
and  bankers 


Dollars. 


500,000 

100,000 
14, 849. 05 


45,000 
6,486 


618,199.17 


1, 535.  91 


Notes  and  bills  rediscounted. 
Bills  payable 


Total 1,286,070.13 


T,  John  Haves,  Cash,  of  'The  Kevstone  Natl.  Bank,  of  Philada.,  IViina.."  dr>  soleinnly  swear  that 
f  he  above  statement  is  true,  t«)  the  lA'sf  of  uiv  knowledge  and  iK^lief,  and  that  the  s«  hedules  on  ba<rk  ot 
the  reiKirt  have  been  carefully  filled  out  andfully  and  correctly  represent  the  true  state  of  the  several 

nrntters  therein  contained.  ,       „  ,.    , . 

Jxo.  llAYKS,  Cashver. 

Correct.— Attest:  ^   .,„  ,, 

G.  W.  Marsh, 
Samuel  Lucas. 

G.  B.  HA1NK8. 

Direetors. 

State  of  Pknna.,  County  of  Philada.: 

Sworn  to  and  subscribed  before  me  this  29th  day  of  December,  1890. 

[8EAL.]  John  W.  Barron,  Notary  Pubhc. 

Must  be  acknowledged  before  an  ofticer  using  an  official  seal.    See  act  approved  Feb.  26, 1881. 


INVESTIGATION   OF   NATIONAL   BANKS.  113 

[FiU  aU  schedules,  writing  in  the  word  "  none  "  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 

Loant  and  discounts. 

On  demand,  onU.  S.  bonds ^ 

"    ,  '*  "    stocks,  bonds,  and  other  personal  securities  ..*.*.' ".'.*.'"'"-*.* «30  179  f;"; 

On  time,  paper  with  two  or  more  individual  or  firm  names 4507  269  69 

"     I*      single-name  paper  (one  person  or  firm)  without  other  security ...!."".!'. ho7  4.V>'  ^'i 

"  secured  by  stocks,  bonds,  and  other  personal  securities *28  200 

"     ♦'      on  mortgages  or  other  real-estate  security  (see  schedule) *p  o,  ^sw 


Total 


Included  in  the  above  are — 


$873, 134. 77 


Loans  exceeding  the  Umit  prescribed  by  section  5200  of  the  Revised  Statutes,  including  amounts  which  ex- 
ceed this  limU  dm  from  State  and  private  banks  and  bankers. 
None. 

Stocks,  securities,  claims,  etc. 


None. 


Balances  due  from  or  to  approved  reserve  agents. 


Enter  name  and  location  of  bank. 


Tradesman's. 
Chase 


From- 


Amount. 


22, 178. 64 
18, 63L  40 


Enter  name  and  location  of  bank. 


To— 


Amount. 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks 


39, 820. 46 


Average  reserve  andinterest.—AveTaiieTeneTye  tor  last  30  days  (in  bank  and  with  reserve  a^entsi 
was  10  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  Sb?  thi  bSk  on 
•leposits  IS  3  per  cent,  on  money  boixowed  is  6  per  cent.  ^         ^  ^  ®^ 

Overdrafts. 


Secured : 

Standing  12  months  or  over . 

•  <  Q  It  (t 

•»  3  ii  4. 

««  J  (t  (i 

Temporary 


Unsecured : 

Standing  12  months  or  over . 

<t  9  t(  (( 

««  1  H  ti 

Temporary 


23,994.24 


None. 


None. 


Other  real  estate  and  mortgages  owned. 


Loans  and  discounts,  secured  by  mortgages  or  other  real-estate  security. 


By  Mr.  DiCKERSON: 

Q.  The  excessive  loans  disappear  between  October  and  December?— 
A.  Yes,  sir. 

lo^'s^^  ^^^  ^°^^  why?— A.  The  report  says  there  were  no  excessive 

Q.  You  only  know  it  as  it  appears  on  the  face  of  the  report?- A. 
X  nat  IS  all.  I  wish  to  say  right  at  this  point  that  this  report  made  by 
Mr.  Drew,  on  the  24th  of  January,  1891,  shows  no  impairment  what- 

Th^  n       ^^Pi^al  of  *^e  Keystone  Bank. 

ihe  Chairman.  The  exhibit  and  the  statement  referred  to  as  beinff 
mcJosed  wiU  be  inserted  and  marked  "  Exhibit  ^o,  3.'' 
3792 8 


''*'"*"PP 


; 


iir! 


I'll ! 


114 


INVESTIGATION    OF    NATIONAL    BANKS. 
Exhibit  3— April  29, 1892. 


Examiner's  preliminary  report  of  the  condition  of  *^The  Keystone  National  Bank,"  located 
at  Philadelphia,  in  the  county  of  Philadelphia,  State  of  Pennsylvania,  at  10  o'clock  a. 
m.,  January  24, 1891.    Examination  commenced  at  10  o^  clock  a.m.    Examination  closed 


G.  W.  Marsh,  President.] 


[John  Hates,  Cashier. 


Resoiiroea. 


1. 
2. 
3. 

4. 
5. 
6. 

A 

9. 
10. 
11. 
12. 
13. 

14. 
15. 


16. 


Dollars. 


Notes  and  bills  discounted 

Overdrafts 

U.  S.  Bonds  to  secure  circulation  * 
(4J) 

IT,  S.  Bonds  to  secure  deposits  *  -  - 

U.  S.  Bonds  on  hand  * 

Stocks,  securities,  claims,  etc 

Premiums  paid *  • 

Minor  coins 

Cash  items  (for  chks.  $29,139.03)  . 

Due  from  national  banks 

Due  from  State  banks  and  bankers 

Exchanges  for  clearing  house 

Checks  on  other  banks  in  same 
place 

National  bank  notes 

Due  from  ai>p'd  reserve  agents,  viz : 
Chase    iNiitional    Bank,   New 
York 

Keserve  funds  in  bank,  viz : 

Fractional  silver $4, 520, 

Silver  dollars 4,360 

Silver  Tr'y  cert's  . .  .14, 495 

Gold  coin 1,056 

Gold  Tr'y  cert's 

Legal-tender  notes . .  4, 604 
\J^^.  S.  cert's  of  dep  . . . 
C.H.  cert's  of  dep... 


895,  793. 51 
158, 806. 13 

50,000 


,50 


17. 
18. 
19. 


20. 
21. 


5  p.  c.  red'n  fund  with  Trens.  U.S. 

Other  funds  with  Treas.  TJ.  S 

Banking  house $225, 000 

Furniture  and  fixtures ...    10, 000 


Other  real  estate  and  mortgages. . 

Current  expenses $11,  «)02. 28 

Exch'g 363.01 

luterestpaid 7,125.53 


Cash  short. 


Total 


355, 391. 91 
2,000 

82.11 

56, 303. 83 

4, «75. 05 

3,  963.  50 

59,  879. 75 

7,  727. 78 
1,250 


1,631.45 


Liabilities. 


1.  Capital  stock  paid  in ,.. 

2.  Sui-plus  fund 

3.  Other  undivided  profits,  viz : 

Discount $5, 732. 84 

Exchange 

Interest 

Premiums 

Rents 

Profit  and  loss 11, 516. 97 


29, 035. 50 
2,250 


235, 000 


19, 090. 82 


1,883,081.34 


4.  Due  to  app'd  reserve  agents,  viz : 

5.  Due  to  national  banks 

6.  Due  to  Slate  banks  and  bankers, . . 

7.  Dividends  unpaid 

8.  Individual  deposits,  viz: 

Subject  to  check  $1, 209, 438. 36 
Demand  certif's. 
Time  certificates 
Certified  checks. 
Cashiers'  checks 


Dollars. 


500.000 
100, 000 


17, 249. 81 

2,495.32 
2, 338. 81 
6,120 


9.  United  States  deposits 

10.  Deposits  of  U.  S.  disbursing  offi- 

cers   

11.  Circulation  received $45, 000 

Less  on  hand  and retu'd. . 


12.  State-bank  circulation  outstand- 


ing. 


13.  Notes  and  bills  rediscounted. 

14.  Bills  payable 

Cash  over 


Total 


1,209,438.36 


45,000 


439.04 


1,883,081.34 


[Note.— Examiners  are  requested  to  report  below  whether  the  records  are  fully  and  explicitly  kept, 
and,  if  not,  whether  proper  corrections  and  additions  have  been  made  during  examination;  whether 
the  books  are  correctly  kept,  and  how  often  accounts  are  balanced ;  which  othcer  is  in  charge,  and  if 
others  are  active  or  inactive;  their  reputation,  salaries  paid,  and  bonds  required  of  them ;  whether  the 
officers  are  trained  bankers,  and  if  they  are  engaged  in  business  outside  of  the  bank ;  whether  the 
directors  meet  regularly  as  a  board,  and  how  often;  the  number  of  shares  owned  by  each;  whether 
they  have  active  discount  and  examining  committees,  or  leave  management  entirely  to  the  othcers :  the 
number  and  classes  of  stockholders,  and  whether  annual  meeting  was  regular;  whether  the  office, 
vault,  and  safe  are  secure,  and  if  used  in  any  other  business  than  that  of  this  bank,  whether  its  busi 
ness      kept  entirely  distinct  and  separate.] 

Records :  Undergoing  examination. 

Other  books:  Undergoing  examination ;  3  individualledgers  contai  i    ,470  accounts. 
President:  Formerly  cashier;  owns  50  shares  of  stock 

Vice-president:  Granville  B.  Haines;  largely  engaged  in  retail  dry  goods  business. 
Cashier:  Formerly  paying  teller. 

Asst.  cashier :  Charles  Lawrence ;  is  general  bookkeeper. 
Directors:  9. 
Stockholders:  120. 

Office,  vault,  and  safe:  Large  and  well-equipped  banking  room,  superior  vault  ana 
safes ;  time  locks  and  watchmen ;  rent  paid,  $13,000,  and  rent  received,  $3,000. 

DIVIDENDS  AND   SURPLUS   (SECTIONS  5199  AND  5204,   U.  S.  REVISED  STATUTES). 

Date  of  last  dividend,  Nov.  4,  1890;  amount,  3  per  cent;  carried  to  surplus,  $ • 

Charged  off  since  last  examination :  Losses,  $ ;  premiums,  $ — - — j  decrease 

of  values,  $ . 


INVESTIGATION   OF    NATIONAL    BANKS. 


LOANS  AND  DISCOUNTS. 


115 


A.  Paper  with  two  or  more  Individual  or  firm  names $730  279  01 

B.  Single  name  paper  (one  person,  company,  firm,  or  members'  of  a  'com'-         ' 

pany  or  firm,  without  other  security) gj  214  50 

C.  Loans  and  discounts  secured  by  real  estate  mort^jaies  or  liens  'unon         ' 

real  estate _  *  ^ 

D.  Demand  loans  secured  by  other  collaterals 0  'eno  00 

E .  Time  loans  secured  by  other  collaterals *..".'."..'".'*..'".'.'.!       14  50o'.  00 

Total  notes  and  bills  discounted 895  793  51 

Included  in  the  above  are — 

F.  Bad  debts,  as  defined  in  section  5204  of  the  Revised  Statutes         $ 

G.  Other  suspended  and  overdue  paper..   .  i82's58'ii 
^$35000)'*'^^  «f  directors  (individual  and  firm)" 'as*  payers  "(firm 

h"*  wV^/^^'^'f  ¥^  ^'"l^*"?'^^'^ ISf ^^^^^  section  5266,*  v.  S.  ReVis^d  Statu^es.^'  ^ 
H.  H.  Yard  (includes  cash  items)  $21, 000  j  overdrafts  $58,  000 $108  000 


ity 
nrm,  through 


f/r«Vo??  fr'^  ^''''^}'^'  all  excessive  loan7  obtained  iTfVnvco;^^^^^^^^ 
_     Its  stockholders,  members,  officers,  or  employes  for  the  benefit  and  use  of  sucnomn^n  v 
«ffi7H«T'X?r  *'  may  appear  from  the  crediis  suclJ  accounts  has  rLeiv^%r  XrS^S 
should  describe  the  manner  in  which  such  accommodations  were  obtained.]  oiuerwise,  aua 


GENERAL  REMARKS. 


charged 


%% 


estimated    loss,    say 


$158,  806. 13 


opposite  U.  S.  Mint  and  Wanamaker's, 


Overdrafts:  Mainly  overdue  notes 
$20,000 

Banking  house : 

New  and  elegant  building 

with  lot  in  rear  to  SansVni  street,  32  ft.  by  90  it.  Total  rents 
received  $37  000  taken  for  debt  of  John  C^  Lucas,  late  pr?si- 
^f  "n  ni.  "^v^.'^^^l^i  deceased,  said  to  have  cost  $480,000,  valued  at 
$4i>0,000,  subject  to  a  mortgage  of  $225,00;),  at  4i  per  cent. 

Ihe  %  represents  equity  in  the  property 99^  ooo  nn 

Bond«,  etc.,  onhand:  ^  ^4o,U(..a00 

Total  bonds  and  stock  of  "The  Sea  Girt  Land  and  Improvement 
,^     'IV.^.''^   !  The  Spring  Lake  Land  and  Improvement  Co.," 
at  Sea  birt  and  Sprmg  Lake,  New  Jersey,  taken  for  debt  of  John 
t/.  Lucas  as  above. 

For  a  part  of  the  Sea  Girt  property  the  State  of  New  Jersey  has  con- 
tracted to  pay  $69  000  (probably  to  be  paid  in  February,  1891) 
and  the  balance  of  that  property  is  estimated  by  former 

now  belonging  to  the  bank,  but  'his"be8t' JudgnreliTi^s^thTtT^^ 

Past  due  paper^:'''*^^^  ^  '^^^''  *""  ^""^^  something  near  $500,000 . .     355, 391 .  91 

(64  notes)  estimated  loss,  say  i 8q  qko  ^>i 

Please  see  accompanying  letter.  ®^'  ^^'  ^ 

W.  P.  Drew, 

To  the  Comptroller  of  the  Currency,  Examiner, 

Washinffton,  D.  V. 


Hon.  E.  S.  Lacey,  Philadelphia,  January  24,  1891. 

Comptroller  of  the  Currency,  Washington,  B.  C: 
on  the  9?h^?w  ""/w^  the  examination  of  the  Keystone  National  Bank  of  this  city 
hitherto  eftWnoii   ^^  '"^^"^"1:  ^^  *^^  president  that  there  would  be  disclosed  a 
amSnfto  $^^^^  '^'V  -^^^  ^^^  ^^  '''•  ^^'^  president,  John  C.  Lucast 

velopmeSfsUrbV'meil'ex^Sf^^^^^^^^^^  ^^"^  verified  by  subsequent  del 


l    > 


'^V 


1* «, 


.■,i; 


116 


INVESTIGATION    OF    NATIONAL    BANKS.. 


INTESTIGATION   OF   NATIONAL   BANKS. 


117 


t  111 


'■'I 


"I 


'1 


,f's- 


u. 


It  appears  that  Mr.  Lucas,  durinj?  his  presidency  of  the  bank,  had,  with  the  con- 
nivance of  the  cashier,  Mr.  Marsh,  now  the  president  of  the  bank,  earned  out,  by 
adroit  nuuiipiilation  of  the  acs.  of  the  bank,  for  a  series  of  years,  a  scheme  for  sys- 
tematic abstraction  from  the  bank  of  hirge  sums  to  assist  his  speculations  in 
real  estate  at  Spring  Lake  and  Sea  (Urt,  New  Jersey,  as  well  as  in  the  construction 
of  a  large  building  on  Chestnut  st.  here,  now  occupied  in  part  by  the  bank.  The 
method  of  concealment  of  this  large  diversion  of  the  bank's  funds  seems  to  have 
been  to  charge  the  amounts  taken  to  the  general  ace.  of  deposits  and  so  to  alter  indi- 
vidual balances  on  the  ledgers  as  should  make  their  aggregate  credits  fit  the  general 
a<»c.  at  the  time  of  the  examination.  Sometimes  the  foreign  bank  balances  were  also 
''padded"  to  correspond  to  the  deficit.  ^      xi.     i      i 

To  protect  the  bank  so  far  as  possible,  I  took  measures  to  secure  for  the  bank 
without  publicity  whatever  pro])eity  belonged  to  the  estate  of  Mr.  Lucas,  and,  after 
a  few  days,  succeeded  in  obtaining  tlie  property  used  by  the  bank  as  a  banking- 
house  for  '<-225y000  and  the  property  at  Spring  Lake  and  Sea  Girt,  New  Jersey.  In 
these  endeavors  I  was  assisted  by  Hon.  John  R.  Read,  U.  S.  district  atty.  here, 
whom  I  employed  to  aid  in  tlie  transactions.  ^   ,    x  -4. 

Tliere  may  be  still  more  juoperty  of  the  Lucas  estate  that  can  be  secured,  but  it 

is  too  early  to  say  positively.  i  -x        •   •       • 

The  discovery  was  reported  to  the  clearing-house  committee,  and  its  opinion  is, 
in  view  of  all  the  facts  ho  fur  known,  that  further  time  be  allowed  the  directors  ot 
the  bank  to  raise  some  $3(X),00()  to  be  put  into  tlu>  bank.  This  purpose  is  in  active 
course  of  completion,  and  it  is  hoped  that  by  this  fresh  8upi)ly  of  funds,  with  a 
radical  change  in  the  management  of  the  bank,  soon  to  be  effected,  the  bank  can  be 

successfully  rehabilitated.  „    ,      ,      ,  x  .•     x  • 

It  appears  that  Mr.  Marsh,  formerly  the  cashier  of  the  bank,  was  at  iirst  igno- 
rantly  led  into  the  irregular  transactions  by  the  president,  and  that  the  latter,  on 
his  death-bed,  exacted  a  promise  from  Mr.  Marsh  to  continue  the  deception  under 
representations  that  the  money  abstracted  would  soon  be  returned  to  the  bank  from 
the  results  of  Mr.  Lucas's  enterprises.  ^     ,  •     xi     i       *  i 

There  does  not  appear  to  be  any  evidence  that  Mr.  Marsh  profited  in  the  least  by 

these  irregularities.  .,        x  i  •       n     ir    *    4. 

Since  the  disclosure  he  has  faithfully  and  earnestly  cot»perated  m  all  efforts  to 
assist  the  bank  to  secure  property  for  this  debt,  and  his  intimate  knowledge  ol  all 
matters  connected  with  the  ailair  has  been  of  great  uso. 

Beyond  the  directors  of  the  bank,  the  seven  members  of  the  C.  H.  committee,  the 
counsel  on  either  side,  and  myself  no  one  has  any  knowledge  or  suspicicm,  so  far  as 
I  can  say,  that  the  bank  is  in  any  trouble,  aiul  it  is  earnestly  Jiope<l  that  no  public- 
ity be  given  to  the  atfair  until  the  bank  shall  be  rehabilitated,  or  all  efiorts  to  that 
end  found  to  prove  futile.  ..  x,      i      i  * 

I  enclose  a  sort  of  ''abstract"  which  will  show  the  condition  ol  the  bank  yester- 
day morning,  the  21th  instant.  1  shall  visit  Wsishiiigton  on  Tu»'sday  next,  the  27th 
instant,  to  attend  a  college  reunion  an«l  will  <all  upon  you  at  your  oHice  on  that  day. 

Should  von  wish  to  telegraph  me  to-morrow  ]dease  send  to  "Keystone  National 

Bank."     Any  letter  may  be  sent  to  me  at  my  house,  3939  Chestnut  st. 

Very  respectfully, 

•^  W.  P.  Drew, 

Nat.  Bank  Examiner. 

P.  S.— In  a  few  days  I  shall  he  able  to  forward  to  you  a  full  report  of  the  con- 
dition of  the  bank. 

Mr.  Cox.  That  shows  the  capital  as  intact"?— A.  Yes,  sir. 

By  Mr.  Sperry: 
Q.  The  report  indicates  solvency,  and  the  letter  which  you  read 
probably  the  opposite.— A.  The  report  does  not  indicate  any  impair- 
ment of  capital.  The  letter  shows  that  the  deficit  was  discovered,  but 
it  was  thouo-ht  that  the  friends  of  the  bank  would  make  it  good.  The 
letter  says  that  Mr.  Drew  saw  the  United  States  attorney  and  pro- 
cured a  transfer  to  the  bank  of  real  estate  at  Philadelphia  and  at  Sea 
Girt  and  Spring  Lake,  N.  J. 

By  the  Chairman  : 
Q.  On  this  report  of  January  24, 1891,  the  real  estate  appears  for  the 
first  time.— A.   I  would  not  say  it  appears  for  the  first  time;  but 
certainly  a  large  amount  is  introduced. 


Q.  There  is  no  item  for  banking  house  or  other  real  estate  or 
mortgages  in  this  report  of  December  19.— A.  In  the  report  of  January 
24  the  banking  house  is  put  down  at  $225,000. 

Q.  And  in  this  report  of  December  19, 1890,  as  to  other  real  estate 
and  mortgages,  nothing  is  reported.— A.  :N^othing  is  reported  here  as 
other  real  estate,  but  the  Spring  Lake  and  Sea  Girt  property  appears 
among  that  class  of  securities.  In  the  report  of  December  19  nothing 
appears. 

By  Mr.  Cox: 

Q.  From  the  reading  of  that  letter  it  did  not  strike  me  that  the 
amount  ot  real  estate  that  he  referred  to  as  having  been  secured  wouhl 
make  up  that  deficit.  I  tliouglit  the  value  was  not  sufficient  to  cover 
the  entire  amount. — A.  It  is. 

Q.  It  does  appear  in  the  report;  but  in  the  letter  it  did  not  make  that 
impression  upon  me.— A.  He  does  not  state  the  value  of  the  Spring- 
Lake  and  Sea  Girt  property  in  the  letter. 

By  Mr.  Dickerson  : 

Q^  He  gives  the  sums  of  $355,000  and  $225,000?— A.  Yes;  the  total 

Q.  That  leaves  $000,000.— A.  Mr.  Drew  says  he  was  informed  by  the 
president  on  January  9,  when  he  went  into  the  bank. 

Q.  He  did  not  discover  it  by  his  own  examination?— A.  Xo,  sir. 

Q.  Was  there  any  information  conveyed  to  yonr  office  in  reference  to 
that  matter? — A.  Nothing. 

Q.  During  tliat  interval  tliere  was  notliing  received  in  the  office  in 
regard  to  that?— A.  I  received  notliing  either  from  the  bank  or  from 
the  examiner  until  the  24th  of  January. 

Q.  During  that  time  he  was  in  possession  of  tlie  fact  of  this  enormous 
difierence?— A.  His  letter  so  says.  He  had  not  communicated  it  to 
me.     I  received  no  communication  from  him. 

By  the  Chairman  : 

Q.  Had  you  received  any  communication  from  anybody  else  ^— A 
I  rom  no  one  else.  ^        ^  •        • 

Q.  No  noth'o,  reached  you  at  all?— A.  No,  sir;  none  whatever,  either 
ofiicial  or  unofiicial.  ' 

By  Mr.  Dickerson  : 

Q.  The  correspondence  seems  to  have  been  dailv  during  the  Decem- 
ber run?— A.  During  the  December  run;  but  froin  about  the  middle  of 
liecember  there  was  no  communication  until  the  24th  of  January. 

(^  Did  you  communicate  with  him  in  reference  to  the  condition  of 
the  bank?— A.  No,  sm 

By  Mr.  Wike  : 

Q.  Is  there  any  legal  requirement  about  how  often  these  reports  must 
oemacle?- A.  The  examiners  are  only  required  to  report  when  thev 
make  examinations,  or  when  something  comes  to  their  knowledge  oV 
wliK^h  the  Comptroller  should  be  informed. 

Q.  There  is  im  statutory  provision?— A.  No,  sir. 

By  Mr.  Dickerson: 

....r*  ^^/^''^i/^V^^'^-^^tciod  at  the  office  at  the  time  of  tins  daily  communf- 

i^<irion  that  tlie  bank  was  still  in  an  unsatisfactory  condition ?— A    There 

was  lu)  evidence,  except  what  appears  in  these  reports  from  Mr.  Drew. 

^!.  Was  there  any  other  failure  of  banks  or  important  business  firms 


i 


41 


(■■1 


*  J 


'    if 


118 


INVESTIGATION   OF   NATIONAL   BANKS. 


'-: 


lit:. 


in  Pliiljulelphiji  between  the  middle  of  December  and  the  time  when 
yon  received  this  letter  of  the  24th,  solar  as  your  knowledge  goes?— A. 
Not  that  I  am  aware  of.  I  think  there  were  no  failures  during  that 
time. 

By  Mr.  Wike  : 
Q.  I  think  the  letters  disclose  failures  to  the  amount  of  $300,000. — A. 
The  gentleman  referred  to  the  time  between  Mr.  Drew's  letter  and  the 
24th  of  January. 

By  Mr.  Dickerson  : 
Q.  The  clearing  houses  did  not  communicate  to  you  anything  about 
the  bank  in  that  interval  of  time? — A.  No,  sir.     No  person  communi- 
cated to  me  during  the  time  anything  in  relation  to  the  Keystone 
National  Bank. 

By  Mr.  GATE : 

Q.  It  seems  that  Mr.  Drew  went  into  the  bank  to  make  an  examina- 
tion on  the  9th,  when  he  discovered  this  fact. — A.  Yes,  sir. 

Q.  When  did  he  send  the  report?— A.  It  is  dated  January  24,  and 
reached  me  on  the  26th. 

Q.  Is  it  the  custom  to  hold  reports  from  the  9th  to  the  24th?  Is  that 
the  ordinary  lapse  of  time  between  examination  and  report? — A.  Some 
bank  examiners  take  thirty  days  in  making  an  examination.  He  re- 
ports as  soon  as  possible  after  completing  his  report. 

Q.  There  is  nothing  unusual  in  that? — A.  No,  sir. 

By  Mr.  Dickerson  : 
Q.  Was  it  not  a  little  unusual,  in  view  of  the  stringency  at  the  time 
and  the  daily  correspondence,  that  he  should  have  absolutely  termi- 
nated  correspondence  with  the  office  and  that  the  office  received  no  infor- 
mation?— A.  1  do  not  think  it  is  unusual.  The  Comptroller,  of  course, 
expects  to  be  informed  in  case  of  the  jeopardy  of  a  national  bank;  but 
if  nothing  occurred  to  cause  uneasiness  it  would  not  be  his  duty  to 
write,  except  to  inclose  the  report  of  an  examination  which  he  had 

made. 

Q.  The  clearing-house  certificates  issued  during  that  time  were  rep- 
resented to  be  immense — about  six  or  seven  millions  of  dollars? — ^A.  It 
was  a  very  large  sum. 

Q.  The  letter  read  awhile  ago  allnded  to  the  bank  as  being  in  a 
condition,  possibly,  of  serious  trouble.  Can  you  explain  why  there  was 
not  some  communication  as  to  how  the  bank  was  progressing? — A.  If 
there  was  nothing  which  would  excite  any  uneasiness  or  alarm  it  would 
not  be  expected.  If  anything  occurred  to  lead  him  to  believe  that  the 
bank  was  in  danger,  I  should  have  expected  to  hear  from  him. 

Q.  Even  if  the  bank  was  in  statu  quo,  in  view  of  the  danger  of 
the  condition  of  the  bank  about  that  time,  would  not  that  have 
led  ordinarily  to  an  inquiry  to  see  if  the  bank  w^as  progressing  to  a 
better  condition? — A.  The  Comptroller  would  not  as  a  matter  of  prac- 
tice inaugurate  that,  because  examiners  are  expected  to  inform  him  at 
proper  times.  The  correspondence  of  the  office  is  something  immense, 
reaching  sometimes  four  thousand  letters  a  day,  with  four  thousand 
banks,  and,  of  course,  the  head  of  a  bureau  can  not  keep  in  his  mind 
the  case  of  a  particular  bank,  especially  during  a  period  like  that,  when 
there  was  a  stringency  which  was  affecting  the  whole  system  of  nearly 
four  thousand  banks,  as  the  calls  upon  his  time  are  very  great.  Mr. 
Drew  communicated  with  me  daily  during  the  time  when  he  considered 
that  any  danger  existed. 


INVESTIGATION   OF   NATIONAL   BANKS. 


119 


By  Mr.  Henderson: 
Q.  How  long  was  it  after  the  Baring  Brothers'  trouble  before  the 
strmgency  was  relieved?— A.  In  a  certain  sense  it  was  relieved  bv  the 
issuance  of  clearing  house  certificates.  Probably  hy  the  first  or  lat- 
ter part  of  December  things  were  easing  up  and  there  was  greater 
confidence.  ^ 

By  Mr.  Cate  : 

Q.  Was  Mr.  Drew  a  subordinate  in  your  office?— A.  Certainly 
Q.  Do  you  not  think  when  he  discovered  that  condition  of  affairs 
that  It  was  his  duty  to  report  sooner  than  the  24th ?-A.  So  serious  a 
dedication,  mvolymg  so  large  a  sum,  I  would  expect  him  to  report. 

i^.  Do  you  consider  that  a  prompt  action  ?— A.  I  do  not  want  to  ffive 
opinions.    I  only  want  to  state  the  facts.  ^ 

By  the  Chairman: 
Q.  Mr.  Lacey  will  now  take  up  the  thread  of  his  story.— A.  I  find  that 
on  January  29  I  addressed  a  communication  to  John  Hayes,  cashier  of 
the  Keystone  National  Bank,  and  on  the  30th  day  of  January  I  re- 
ceived a  telegram  from  Mr.  Drew.  *  j^  x  ic 

Q.  Do  you  know  what  property  Mr.  Drew  referred  to?— A.  It  had 
some  relation  to  making  title  to  this  real  estate. 

T^'^'^^f^^'T  l^?""''-^:  ^^  ^^«  t^^  ^itle  made  to  the  bank,  I  think, 
ine  exact  title  ot  the  association  appears  in  the  papers. 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency 
Mr.  John  Hayes,  Wmhington,  Jan^y  29,  1891, 

Cashier,  Keystone  Xafl  Bank,  Philadeljyhia,  Pa.: 
..  ?"^=^^****A?^  publication  of  the  report  of  the  condition  of  vonr  bank  as  made  to 
deceived'  ""'' ""'  ^"'^'''''  °^  ^''''^'''  *^"  ^^*^  ^^^^  «^ ^^^-  1891   ha^s  ™?t *2 

Your  attention  is  invited  to  the  requirements  of  section  5211  and  section  5213  U 
S.  Revised  Statutes,  m  reference  to  forwarding  reports  »«t^won  ozi6,  U. 

fiespectfuUy  yours, 

E.  S.  LiACey, 

Comptroller. 


[Telegram.] 


Hon.  E.  S.  Lacey,  Philadelphia,  Pa.,  Jan.  30,  1891. 

Comptroller  of  Currency,  Washington  I).  C: 

Please  send  certified  copy  of  articles  of  association  of  Keystone  National  Rflnlr  h* 
mail  to-day  to  president  of  bank,  for  use  in  transferring  the  property  ^ 

Answer  me  at  bank.     Important.  '^i^i^peity. 

W.  P.  Drew. 


[Tele^ain.] 


Hon.  E.  S.  Lacey,  ^''^'  ^^>  ^^^^' 

Comptroller  of  Currency,  Washington,  D.  C: 
Strong  credit  with  clearing  house  this  morning.    Prospects  encouraging. 

\^.  P.  Drew. 


>1 


1 


f!4 


|;^ 


120 


INVESTIGATION   OF    NATIONAL    BANKS. 


i: 


1: 


i 


'■■(4 


As  preliminary  to  this  letter  I  am  about  to  read,  which  is  dated  Feb- 
ruary 16,  1890, 1  would  say  that  there  was  a  meeting  of  the  assay  com- 
mission which  visited  the  United  States  mint  on  February  12, 1891,  of 
which  I  was  a  member.  I  was  in  Philadelphia  about  three  days,  I 
think.  During  that  time  I  called  at  the  Keystone  Bank  and  had  a  con- 
versation with  several  of  the  leading  directors  of  the  bank,  in  which  it 
was  discussed  as  to  how  the  cash  of  the  bank  should  be  replenished. 
Their  assets  were  largely  in  real  estate,  and  it  was  important  that  it 
should  be  stronger  in  cash. 

By  Mr.  Wire  : 

Q.  How  was  that  developed!— A.  The  report  shows.  During  the 
time  intervening  between  the  24th  of  January  and  the  16th  of  February 
Mr.  Drew  had  been  continuing  his  examination  daily.  His  assistant, 
Mr.  Jones,  was  put  in  charge  of  the  books  as  general  bookkeeper  of  the 
bank,  and  he  was  still  continuing  his  examination  to  ascertain  precisely 
the  liabilities  and  the  amount  of  its  assets. 

Q.  Can  you  state,  in  brief,  what  they  were  and  what  your  conclusions 
^ere? — A.  Mr.  Drew  verbally  gave  me  some  information  which  he  had 
ascertained  in  the  interim.  He  stated  the  sum,  which  I  can  not  re- 
member. 

Q.  I  want  to  know  what  your  personal  conclusion  was. — A.  He  stated 
that  there  would  be  developed  some  impairment  of  the  capital,  but  I 
can  not  remember  the  amount,  because  it  was  given  verbally.  I  re- 
quested him  to  make  out  another  statement  of  the  condition  at  that 
time,  and  forward  it  to  me,  showing  the  amount  of  impairment.  That 
statement  came  to  my  hands,  and  showed  an  impairment  of  about 
$125,000.    I  presume  that  was  what  I  read  about  in  the  letter. 

Q.  Was  that  ever  made  public?— A.  Certainly. 

Q.  Does  your  conclusion  appear  anywhere  in  the  record! — ^A.  No, 
sir:  not  in  respect  to  that. 

Q.  It  is  not  on  file!— A.  I  did  not  write  him.  This  was  merely  a 
verbal  communication  to  me  in  Philadelphia. 

Q.  I  thought  that  if  your  conclusions  appeared  anywhere  they  would 
be  important,  but  unless  they  do  it  would  not  aid  us  much. 

Mr.  Sperry.  If  it  appears,  it  is  probably  in  the  form  of  an  assess- 
ment. 

By  Mr.  Wike  : 

Q.  My  question  had  reference  to  what  impression  you  got  from  the 
suggestion  made  by  him.— A.  I  was  about  to  state  it.  As  I  say,  we  had 
a  verbal  conversation,  in  which  it  was  disclosed  that  there  would  prob- 
ably be  some  impairment  of  the  bank^s  capital,  and  I  requested  him  to 
make  a  statement  of  it.  He  did  make  the  statement.  I  had  stated  to 
him  that  whatever  impairment  was  disclosed  should  be  made  good  by 
an  assessment,  and  he  laid  that  before  the  board  of  directors. 

Q.  Your  suggestions  were  not  preserved! — A.  They  were  verbal.  I 
did  not  name  the  amount,  because  it  was  predicated  upon  the  report 
which  he  was  to  send  me. 

Philadelphia,  Pa.,  February  16, 1891. 
Hon.  E.  S.  L4CEY, 

Comptroller  of  the  Currency ,  Washington,  D.  C: 
Sir:  I  have  arranged  to  lay  before  tlie  board  of  directors  of  the  Keystone  National 
Bank  here  your  conclusions  with  reference  to  an  assessn  ent  on  the  capital  stock  of 
the  bank  at  their  meeting  to-morrow.  Some  of  the  stockholders  have  already  expressed 
to  me  their  willineness  to  pay  their  proportion.  1  propose  to  lay  before  the  directors 
to-morrow  a  complete  statement  of  the  condition  of  the  bank,  at  that  time,  and  to 


INVESTIGATION   OF   NATIONAL   BANKS. 


121 


'  u 


{i«free  with  them  upon  the  amount  of  losses  of  all  sorts  likely  to  accrue,  and  shall 
reduce  all  values  to  a  fair  minimum.  I  hope  to  mail  to  you  to-morrow  evening  my 
report.  I  learu  that  Mrs.  J.  C.  Lucas,  widow  of  the  late  president,  intends  to  sail 
for  Europe  within  a  short  time.  As  she  owns  2,000  shares  ($100,000)  of  stock  of  the 
bank,  action  should  be  taken  at  once. 

Please  forward  to  me  written  instructions  on  which  I  can  act.  The  bank  was  a 
creditor  at  the  clearing  house  this  mt>rning  $49,400,  and  everything  at  the  bank  was 
quiet  as  usual. 

Very  respecfully, 

W.  P.  Drew, 
National  Bank  Examiner, 

By  the  CHAIRMAN: 

Q.  Is  that  a  copy  of  the  statement  of  the  resources  and  liabilities  of 
the  bank  on  the  16th  of  February?  (Handing  witness  a  paper.) — A. 
Yes,  sir. 

Q.  What  impairment  of  capital  does  that  disclose? — A.  (After  figur- 
ing.) It  is  not  sufficiently  explicit  to  enable  me  to  give  the  exact  de- 
ficit. There  is  a  doubtful  item  here  of  $337.52.  I  can  not  state  what 
that  was  for;  but  I  find  that  the  deficit  was  stated  at  $211,156.37. 
There  are  expenses  of  $33,437.15;  making  the  total  $244,952.51.  The 
surplus  and  undivided  profits  were  $119,137.41,  which  would  show  that 
the  impairment  of  the  cai)ital  of  the  Keystone  Bank  at  that  time  was 
$125,466.11.    That  is  about  my  recollection  of  it. 

By  Mr.  WiKE : 

.  Q.  I  want  to  ask  you,  because  it  is  not  so  important  in  this  case  as  it 
is  to  have  a  general  understanding  of  this  matter.  I  asked  what  proc- 
ess you  or  your  examiners  have  of  examining  the  paper  of  banks. 
What  sort  of  care  do  you  observe,  or  what  sort  of  examination  do  you 
make  of  the  discounted  paper  of  banks? — A.  The  duty  of  an  examiner 
upon  entry  is  to  take  charge  of  its  cash  and  assets. 

Q.  But  what  care  do  you  take  in  seeing  whether  the  paper  is  good? — 
A.  I  was  going  to  tell  you.  The  bank  examiners  will  take  charge  of 
the  bank  and  put  the  cash  under  seal  until  he  has  counted  the  cash 
and  it  has  proved  to  be  correct.  It  is  then  his  duty  to  take  every  note, 
bond,  stocks  of  any  kind,  and  everything  representing  value  to  the 
bank,  and  to  make  a  careful  list  of  them. 

Q.  You  do  not  mean  that  he  makes  a  registry  of  all  those? — A.  He 
makes  a  list  of  every  piece  of  paper,  and  if  it  be  proved  by  handling 
it  he  makes  a  list  of  it.  He  takes  the  paper  and  goes  over  it  seriatim. 
Mr.  Drew  would  know  in  ninety -nine  cases  out  of  a  hundred  if  the  paper 
were  suspicious. 

Q.  What  inquiry  would  he  make  about  it?— A.  That  is  entirely  owing 
to  circumstances. 

Q.  I  do  not  suppose  it  is  possible.— A.  As  an  ordinary  proposition, 
if  you  had  been  an  examiner  you  would  be  able  to  pick  out  readily  the 
genuine  paper,  and  the  j)aper  that  had  come  in  in  the  proper  way.  The 
paper,  if  it  were  renewal  paper,  or  accommodation  paper,  would  have 
tlie  earmarks  of  such.  It  wcnild  appear  on  the  face  of  the  paper,  if  it 
was  a  round  sum,  or  if  it  was  indorsed  by  an  individual.  That  paper 
IS  laid  aside,  and  he  proceeds  to  question  the  bank  officers,  and  if  not 
satisfactory  he  makes  a  memorandum  of  it.  He  inquires  of  other  dis- 
creet persons  as  to  the  standing  of  persons  whose  paper  he  was  not  con- 
versant with. 

Q.  Will  you  furnish  me  a  certified  copy  of  this  list  referred  to  in  the 
statement  of  February  16,  1891,  and  it  will  be  introduced  in  evidence, 
and  marked  Exhibit  No.  4 ? 


ii] 

ill 

i 


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i 

4 


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HI 

^^^H 

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m 


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122 


INVESTIGATION   OF   NATIONAL   BANKS. 


Exhibit  No.  4,  April  29, 1892. 

Condition  of  the  Keystone  Nat.  Bank,  Philadelphia,  at  close  of  business  Fthruary  16 

1891. 

Cash  items : 

'    Protested  checks,  H.  H.  Yard,  probably  good $21, 000. 00 

City  treasurer  (good) 7,463.68 

Other  protested  checks,  notes  (hopeful) .%  930. 74 

"              "            "      299.67 

Memos,  president  (good) 1, 199. 22 

I          ''       cashier 325.00 

'^       other  parties  (hopeful) 1,110.00 

\     Sent  to  U.  S.  Treasurer 655. 00 

Advances  on  salaries 322. 11 

Donbtfulitems 337.52 

36,  642. 94 

Country  checks  (good) 5, 671. 65 

Runners'  checks 10, 937. 99 

C.  H.  exchanges 167,327.43 

Nat.  bank  notes 780.00 

Frac.  currency 576. 06 

Frac.  silver 4,  068.  .50 

Silver  dolls 3, 382. 00 

Silver  notes 5,  310. 00 

Gold  coin 3,  730. 50 

Legal-tender  notes 2,  754. 00 

U.  S.  gold  certs 45, 000. 00 

286, 181. 07 

Bills  discounted : 

Time  paper  not  matured 668,  .595. 52 

''          <'      overdue 179,907.82 

Demand  loans  ($75  m.  on  collat.) : 91, 372. 55 

939,875.8'J 

Missing  overdue  paper 40, 468. 65 

980, 344. 51 


Mem. :  Of  the  above,  $669,804.80  are  held  by  clearing-house  for  $428,516.24,  C.  H.  loan. 

RESOURCES. 

Bills  discounted 980,344.51 

Overdrafts  (97  acs) 99,907. 11 

U.  S.  bonds  for  circulation  (4|) 50,000.00 

Bonds  Baltimore  Traction  Co.  (for  debt) 100, 000. 00 

Other  bonds  and  stocks  (Sea  Girt,  Spring  Lake,  N.  J.  (for  debt) 700, 000. 00 

Due  from  res.  agts. : 

Tradesmen's  Nat.  Bank $25, 260. 98 

Chase  Nat.  Bank 8,846.28 

34, 107. 26 

Due  from  other  banks 51,783.93 

Furniture  and  fixtures 10, 000. 00 

Expenses $20,147.65 

Exchange 784.29 

Interest  paid 12, 505. 21 

33, 437. 15 

Premiums  (on  U.  S.  bonds) 2, 000. 00 

Cash 286,181.07 

Redfd.  with  the  U.  S.  Treasurer 2,250.00 

2, 350,  Oil.  03 

Short  on  capital  aud  surplus 211, 156. 37 


2, 561, 167. 40 


INVESTIGATION    OF    NATIONAL    BANKS.  123 

Mem. :  This  short,  is  made  up  mainly   by  fictitious   bals.  witli  res. 

A  *f^J*  ••;■•■,; .• 78,700.00 

And  due  bills  act.  dr.'' xi3  340. 69 

192, 040. 69 

LIABILITIES. 

5^P^*^^ .500,000.00 

Surplus  100  000.00 

l^i8c«»^t $7,610.44 

P.  and  loss 11,516.97 

19  1*^7  41 

Circulation  $45, 000  ($7.50  on  hand) 44  250*  00 

Dividends  not  paid q  220  00 

Deposits  for  checks  (city  treasurer,  $552, 163. 05) .'  .*.".*.*.'.'  '$1,'467,'985.'67 
Certs,  of  deposit : 47  701  91 

T^      .    T      1  1,455,687.58 

Dueto  banks 6  812.84 

Cash  over '  g-o  00 

Clearing-house  loan !.*....!!..!!.!!'!        428  516  24 

2, 561, 167. 40 

Single  named  paper        : 105, 000. 00 

1  ime  loans  on  collaterals 35  qq^  qq 

Demand  loans  on  collaterals 75'  qqq*  (^ 

Past-due  paper,  Apl.,  1888,  to  Feb.,  1891,  99*  noYeV,TucYudes" $50,  606* 

estate  J.  C.  Lucas,  late  prest.,  dec'd 179  907  qq 

Directors'  indebtedness  (firm  $33,  000) ".....'-!.*.]]]*]  38  000  00 

3  individual  ledgers  (1,470  ac's)  no  differences;  pass  books  being  balanced  as 
rapidly  as  possible.  ** 

Average  reserve  for  last  ninety  days,  say,  12  per  cent. 

"      "    thirty     ''         <^     10  per  cent. 

Interest  paid  on  same,  $200, 000. 

Loans  ill  excess  of  legal  limit: 

H.  H.  Yard  (including  protested  checks) log  qqq  qq 

Estate  of  J.  C.  Lucas,  deed.,  late  prest,  direct .'' " "'.""  50' OOO  00 

Indirect ; '..".'."//."  75,000;  00 


■i\ 


■    i 


125, 000. 00 


[G.  W.  Marsh,  president.    John  Hayes,  cashier.    Chas.  Lawrence,  asst.  cashier.] 

_„^  Keystone  National  Bank, 

1326  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint 
Hon.  E.  S.  Lacey,  Philadelphia,  Feb.  17,  mi. 

Comptroller  of  the  Currency,  Washington,  D.  C: 

f  K??iL^  H^K  *^®  ^"'^«r  t<>  ^,^clo8e  herewith  a  report  of  the  condition  of  this  bank  at 
tJie  close  of  business  on  the  16th  mst. 

blJrfv^fn^i!^^  A^  !i^y«.P«*  Jj'id  time  to-night  to  transfer  the  same  to  the  appropriate 
ha^t  o^  T-  ^t  'St  '*-iT'l^',^  ^^P^'  "'"'r^'y  •''"  •attainable  information  regarding  the 
bank  at  present.  It  will  take  a  very  long  time  to  fully  elucidate  the  method!  bv 
J«fi5 f  •  "*  if  ^f  ^  f  ^"^  ""!  the  capital  stock  has  been  abstracted  without  disclosing  the 
deficit  m  the  books  and  accts.  of  the  bank.  That  the  whole  amount  of  the  loss  has 
vfn?pd^P'TT'''*^'J  ?/.*u'^Ji*^  president  and  his  friends  I  am  more  and  more  con- 
h  .^^?;  ^^  '^  1  *  that  the  present  president,  who  was  cashier  under  Mr.  Lucas, 
n8tr,f.n.nT«i^''''^''^^^'".•*^^  aeiu-edation  further  than  to  have  been  the  obedient 
instrument  of  a  i)e(nlating  and  desigmng  chief;  but  within  a  day  or  two  I  have 
hnf  T  ly^'n  *^«»**^rtf  n  suspicions  of  him.  I  hope  these  suspicions  are  groundless 
but  I  shall  endeavor  to  satisfy  myself  as  soon  as  I  can.  feiouuuiess, 

Hom!!'!*  *^^-  !v '"''^l  "^  directors  to-day  and  laid  your  conclusions  before  them.     While 
Se  an  Jw^'n^f  f     ^^  the  required  assessment  others  fear  that  snch  an  order  would 

from  th?  w/^     -^^^^  J?^  ^^""^.^  ^^5  ^  '.^^'^^^  ^«*  ^«  surprised  if  a  committee 

irom  the  board  visited  you  this  week  to  further  discuss  the  matter. 

1  he  bank  setth^d  in  debt  $10,000  this  morning  at  the  clearing  house. 

ii^  very  thing  seems  to  be  moving  along  in  the  accustomed  quiet  way. 

bo'rr^wfn'i^™°n"n".wJ*''*'?^^^     f"^^®  "P  f.  interest  and  expenses  attendant  npon  the  long  practice  of 
uorrowmg  money  to  settle  balances,  and  for  other  purposes  not  yet  discovered.  pra^^uce  01 


"1 


J- 


il 


If 


124 


if 


INVESTIGATION   OF   NATIONAL   BANKS. 


Ifihv  «'iu1o.s«m1  report  is  not  Hatisfactory,  in  lonn  or  otherwise,  will  yon  please  re- 
turn it  and  I  will  transfer  it  to  the  proper  hlank  form. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Hank  Examiner. 

P.  S. — Mr.D.  P.  S.  Nichols,  of  the  board  of  directors,  has  consented  to  hecome  vice- 
]>resident  of  the  bank,  for  a  time  at  least.  He  is  a  very  proper  selection  for  that  trust, 
and  will  supervise  all  the  operations  of  the  bank. 


Treasury  Department, 
Office  of  Comptroller  ok  the  CruRExcv, 

Washington,  I).  ('.,  Februaru  SO,  1S91. 
Mr.  W.  P.  Dur.w, 

National  Hank  ExamineTf  39S9  Chestnut  street,  Philadelphia,  Pa.: 

My  Dear  Sir:  I  am  in  receipt  of  your  two  favors  of  the  16th  and  17th  instant, 
and  note  what  you  say  in  reference  to  No.  2291. 

The  statement  you  sent  is  satisfactory  as  to  the  matter,  but  I  should  prefer  to  have 
had  it  on  one  of  our  regular  blank  forms  as  putting  it  in  a  more  valuable  shape.  I 
would  suggest  that  you  send  another,  with  the  items  stated  upon  the  regular  blank 
used  for  report,  and  take  up  each  separate  heading  and  give  an  estimate,  in  your 
judgment,  of  the  exact  value  of  the  resources  as  stated.  Estimate  the  discount  upon 
each  class  of  investments. 

My  object  in  this  is,  if  possible,  to  arrive  at  precisely  the  amount  of  deficiency 
necessary  to  be  made  up  by  assessment  upon  the  capital  stock. 

I  should  be  glad  to  see  any  committee  of  the  board  which  may  visit  Washington, 
but  can  conceive  of  no  better  way  to  put  the  institution  in  first-class  shape  than 
that  suggested  by  me.  One  thing  is  certain,  that  some  action  is  imparatively  neces- 
sary, and  the  sooner  it  is  taken  the  better  will  be  the  results.  I  shall,  of  course, 
sustain  and  encourage  the  board  in  their  endeavor  to  put  matters  in  a  satisfactory 
condition. 

V^ery  respectfully, 

E.  S.  Lacev, 

Comptrollei'. 

By  Mr.  WiKE: 

Q.  What  does  Mr.  Drew  mean  by  the  expression  "  without  disch)S- 
ingF— A.  He  means  the  system  by  which  they  liad  deceived  him  duiiug 
these  months  and  years.    Mr.  Lucas  is  dead. 

By  the  Chairman  : 

Q.  Tliis  is  the  first  intimation  that  you  received  ?— A.  Yes,  sir. 

By  Mr.  WiKE: 

Q.  Have  you  evidence  of  what  amount  is  disclosed  as  suspicious?— 
A.  ]Sro,  sir;  that  will  come  later.  He  said  he  would  investigate  it.  Mr. 
D.  P.  S.  Mchols,  to  whom  he  refers,  was  president  of  the  Central  Trust 
Company,  which  occupied  a  room  in  the  bank  building.  I  made  an 
assessment  on  the  bank  stock  to  make  good  the  impairment  of  the  capi- 
tal. It  was  decided  that  the  directors  would  put  in  the  sum  and  as 
soon  as  the  assessment  was  made  would  make  collections  from  the  sev- 
eral shareholders. 

Q.  Does  that  appear  in  your  statement!— A.  I  may  say  that  that 
talk  I  had  with  Mr.  Drew  was  a  verbal  one.  There  was' no  further 
communication  until  I  received  a  letter  addressed  to  nw,  by  Mr.  Drew, 
dated  February  28, 1891— this  letter  which  accompanied  the  Hiial  report 
of  Mr.  Drew  upon  the  condition  of  the  Keystone  National  P>ank.  It 
was  dated  February  US  and  was  received  on  the  2d  day  of  March. 

Philadelphia,  Feb.  ^'S,  1S91. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 
Sir:    In  additicm  to  the  facts  embraced  in  my  report  of  the  condition  of  the 
Keystone  National  Bank  of  this  city,  herewith  furnished,  there  are  some  others  which 
perhaps  will  better  be  presented  in  this  letter. 
The  valuation  placed  upon  the  stock  of  the  land  companies  at  Spring  Lake  and 


INVESTIGATION   OF   NATIONAL   BANKS. 


125 


Sea  Girt  has  been  decided  on  after  as  full  and  careful  investigation  as  I  have  been 
able  to  make,  and  has  been  concurred  in  by  the  directors  of  the  bank. 

I  enclose  u  map  of  the  properties.     The  lots  not  heavily  shaded  have  not  been  sold. 

Pay  ($67,000)  for  the  encampment  ground  for  the  State  of  New  Jersey  is  confi- 
dently expected  in  the  coming  month. 

The  attorneys  of  the  bank  have  now  in  charge  a  thorough  investigation  into  the 
legal  status  of  the  property,  its  real  valuation,  and  will  make  a  report  at  an  early 
day  to  the  bank  upon  all  points  relating  to  the  same.  This  at  my  request.  I  have 
included  in  "Items  creating  the  deficit"  the  capital  stock,  $72,000  of  discounted 
paper,  search  for  which,  although  it  was  in  the  bank  according  to  my  retained 
papers  at  the  time  of  my  last  examination,  has  thus  far  availed  nothing.  Whether 
the  notes  have  been  abstracted  (and  I  do  not  feel  confident  that  they  have  not  been) 
or  are  confused  with  other  papers  in  the  bank  and  will  eventually  come  to  light  is 
quite  doubtful.  If  you  should  conclude  to  give  the  bank  the  benefit  of  this  uncer- 
tainty in  making  any  assessment  on  the  stock,  it  would  much  reduce  the  apparent 
deficit. 

It  has  been  and  still  is  very  difficult  to  trace  the  losses  of  this  bank.  The  fabrica- 
tion of  balances  and  the  falsification  of  accounts,  the  suppression  of  debts  due  the 
bank,  together  with  the,  to  me,  unprecedented  removal  of  whole  pages  and  leaves 
from  ledgers  containing  large  credit  balances  in  order  to  bring  the  work  of  the  ex- 
aminer down  to  the  Itilse  summaries,  the  correct  amounts  to  be  afterwards  entered  in 
other  portions  of  the  books,  will  render  it  a  work  of  much  time  before  the  whole  de- 
ce]>tion  cnn  be  exposed. 

In  addition  to  all  this,  payments  to  the  bank  have  been  made  in  considerable 
amounts  of  which  no  record  of  indebtedness  appears,  and  a  proposition  ha«  been 
made  to  put  into  the  bank  $200,000  from  sources  not  to  be  divulged.  The  very  item 
in  assets  of  $100,000  bonds  of  the  ''Baltimore  Traction  Company"  is  unexplained. 
The  president  knows  where  they  came  from,  no  doubt.  They  appeared  only  at  the 
time  of  the  run  in  Dec.  last,  and  are  now  held  as  security  by  the  clearing  house 
committee.  All  efibrts  to  ascertain  the  sources  and  responsibility  of  these  matters 
have  met  with  failure.  I  have  not  pressed  my  inquiries  in  these  directions,  because 
I  wished  to  get  back  into  the  bank  all  possible  to  obtain  quietly. 

If  you  think  it  would  answer  better  to  send  some  one  from  the  office  to  represent 
you  pending  further  i)rogress,  I  hope  you  will  not  hesitate  so  to  do.  I  will  give  him 
all  aid  m  my  power,  and  shall  be  able  to  turn  my  attentions  to  other  banks  that  need 
examination  in  due  course.  I  am  perfectly  willing  and  desirous  to  continue  in  charge 
of  this  investigation  if  deemed  best,  however,  and  no  urgency  appears  elsewhere. 

1  have  thought  that  should  there  be  any  appearance  of  an  incipient  "run"  on  the 
bank  I  should  shut  the  doors  at  once;  but  there  is  so  far  not  the  least  appearance  of 
uneasiness  among  the  depositors. 

If  you  decide  on  the  amount  of  th©  assessment  necessary,  I  would  respectfully  sug- 
gest that  it  be  preceded  by  the  strongest  advice  to  the  directors  to  make  good  the 
dehciency  before  public  announcement  of  the  assessment.  I  am  sure  that  only  the 
most  vigorous  action  on  the  part  of  the  office  will  awaken  those  interested  to  the 
great  peril  that  menaces  not  only  the  bank  but  those  who  have  had  any  part  in  its 
management. 

Please  return  the  inclosed  map. 

Very  respectfully,  w.  P.  Drew, 

Xat.  Bank  Examiner. 

P«  S.— The  bank  settled  creditor  at  clearing-house  to-day  $22,000. 

Q.  How  long  was  that  before  the  bank  closed  ?— A.  Fourteen  business 
days  expired  before  the  bank  closed. 

By  the  Chairman  : 

Q.  In  the  preliminary  report  made  by  Mr.  Drew  on  January  24  the 
banking  house  appears  as  assets  $225,000  ?~A.  Yes,  sir. 

Q.  On  the  report  made  by  Mr.  Drew  February  28,  1891,  the  banking 
house  does  not  appear  at  all?— A.  In  the  meantime  the  banking  house, 
or  the  equity  in  the  banking  house,  was  sold  for  $175,000. 

Q.  To  whom  was  it  sold!— A.  To  William  Weightman,  of  the  firm 
of  Powers,  Weightman  &  Co.,  of  Philadelphia. 

Q.  The  item  classed  as  securities,  claims,  etc.,  in  the  report  of  Janu- 
^c^Ia  -1^^  ®*^*^^  ^^  $385,391.91 ;  and  in  the  report  of  February  it  is 
^»00,000  ?— A.  Mr.  Drew  stated  in  his  first  report  that  the  actual  amount 
at  which  Mr.  Lucas  estimated  it  in  his  statement  was  three  hundred 
»m  fifty-five  thousand  and  odd  dollars.    In  the  report  of  February  16, 


*  I 

t 

:  i 


•|:  '^, 


126 


INVESTIGATION   OF   NATIONAL   BANKS. 


ii 


I'  '-1 


hh: 


and  also  in  the  report  of  February  28,  lie  places  an  arbitrary  value 
upon  the  Sea  Girt  and  Spring  Lake  property  of  $700,000.  He  increases 
the  value  of  the  real  estate  between  January  24  and  February  10  by 
the  difference  between  $355,000  and  $700,000.  The  property  originally 
was  $355,000 J  and  in  February  it  is  put  down  at  $700,000.  The 
$100,000  referred  to  is  bonds  of  the  Baltimore  Traction  Company. 

Q.  I  notice  on  tlie  report  of  February  28,  1891,  there  is  clearing 
house  liabilities  $371,316.96.  There  is  no  corresponding  item  in  the 
report  of  January  24? — A.  Mr.  Drew  did  not  state  it  in  his  report  of 
January  24, 1891. 

Q.  Is  there  any  item  in  the  report  of  February  10? — A.  Yes,  sir. 

Q.  What  is  stated  there  among  liabilities? — A.  The  liabilities  of 
clearing  houses  here  is  stated  at  $428,516.24. 

The  Chairman.  The  paper  will  be  inserted,  marked  No.  5. 

No.  of  Bank,  2291. 

Examinei^s  report  of  the  condition  of  "  The  Ktystone  Natiottal  Bank"  located  at  rhila- 
delphia,  in  the  County  of  FhiJade'lphia,  Stale  of  rennsyhania,  at  3  o'clock  p.  m.,  Feb- 
ruary 28y  1891.    Examination  commenced  at o'clock ».    Examination 

closed . 


GiDKON  W.  Marsh,  President. 


John  Hatbs,  Cashier. 


Kesources. 


1.  Loans  and  discounts  (see  sched- 

ule)  

2.  Overdrafts 

3.  U.  S.  bonds  to  secure  circulat'n 

(4^  per  cent) ■■• 

4.  U.  S.  bonds  to  secure  deposits 

(       per  cent) • 

5.  U.S.  bonds  on  hand  (       percent) 

6.  Preiiiium  on  U.  S.  Inrnds 

7.  Stocks,    securities,  claims,  etc. 

(see  schedule) 

8.  Banking  hou»o $ 

Furniture  and  fixtures      10,000 

9.  Other   real  estate  and  morg'es- 

(see  schedule) 

10.  Due   from   approved  reserve 

agents,  viz: 
Chase  Xat.  Bank.N.  Y.  $6, 274. 58 
Tradesmen's   Nat. 

Bank,  N.  Y 12,7n.09 

11.  Due  from  other  national  banks.. 

12.  Due  from  State  banks  and  bank- 

ers  

i:{.  Exchange  for  clearing  house 

14.  Checks  on  other  banks  in  same 

Is  of  otiier  national  banks 

16.  Uncurrent  and  minor  coins 

17.  Cash     items     (country    checks 

$4,364) 

18.  Reserve  fund  in  bank,  viz: 

Fractional  silver $3,546.25 

Silver  dollars 1, 420 

Silver  Tr'y  cert's 10, 480 

Gold  coin 2,495 

Gold  Tr'y  cert's 

Legal  tender  notes ....         2, 250 

U.S.  cert's  of  dep 

C.  H.  cert's  of  dep 

19.  Sp.c.red'nfundwithTreas.U.S. 

20.  Other  funds  with  Treas.  U.  S... 

21.  Current  expenses $21,451.91 

Exch'ge 1,334.54 

Interest  paid 12,466.58 

Deficit , 

22.  Cash  short 

Total 


Dollars. 


823, 330.  39 
111,  990. 54 

50,000 


2,000 

800, 000 

10,000 


18,  985.  67 
53, 550. 91 

2, 8.52. 95 
119,  831.  73 

39, 883. 22 
903 
394.15 

16, 414. 15 


20, 191. 26 
2,250 


35,253.03 

386, 691. 98 

1,938.49 


2, 496, 461. 46 


Liabilities. 


9, 
10, 

11. 


12, 

13, 

14. 

15, 


Capital  stock  paid  in 

Surplus  fund 

other  individual  profits,  viz : 

Discount $10, 552. 95 

Exchange 

Interest 

Premiums 

Kents 

Profit  and  loss 11, 516. 97 

Due  to  app'd  reserve  agents,  viz: 

Due  to  other  national  banks 

Due  to  State  banks  and  bankers 

Dividends  unpaid 

Individual  deposits,  viz  • 
Subject  to  check  . .  .$1, 357, 003. 25 
Demand  r^rtifs...        48,371.91 
Time  certificates.. 
Certified  checks... 
Cashiers  checks . . - 

United  States  deposits 

Deposits  of  U.  S.  disbursing  of- 
ficers   

Circulation  received..      $45,000 
Less  on  hand  retn'd  . . 

State  bank  circulation  outstand- 
ing   

Notes  and  bills  rediscounted 

Bills  payable 

Clearing-house  loan 

Cash  over 


DoUars. 


500,000 
100,000 


22,009.92 

44,  597. 02 
1,982.40 
6,120 


1,405,375.16 


Total 


45,000 


371, 316 


2,496,461.46 


INVESTIGATION   OF   NATIONAL   BANKS. 


127 


No.  of  Bank,  2291. 
Directors. 


No.  of 
sliares 
owned. 

Names. 

Post-office  address. 

Liability 

as  payers 

lind  vidual 

or  firm.) 

Liability 

as  indors- 

ers. 

Occupation. 

1       54 

G.  W.  Marsh 

Philadelphia 

it 

(t 

2,000 

15, 000 

2,500 

Pres't  of  Bank 

2      991 

G.  B.  Harries 

D.  P.  S.  Nichols 

Chas.  McFadden 

Chas.  C.  Tow 

C.  A.  Shellenberger. . 

J.  T.  Jackson 

Sam'l  Lucas 

Dry  goods  merchant. 
PresT,     Central      Svgs. 
Fund. 

"R,    "R    o.tvnf.rsiiKtfiv 

3  250 

4  700 

2,398 

5        25 
U      204 

it 

*•  IK'-" 

6,800 

2,000 

Mfr. 
Physician. 

7        IW 

^/F 

8        20 

(( 

Xfftrp.liflTit 

Mem.  :  Of  the  above  Nos.  3,  7,  and  8  have  not  qualifietl. 

Henry  Van  Beil.  formerly  vice-president,  and  L.  Dreka  have  sold  their  stock. 

[State  also  whether  records  show  that  directors  meet  regularly  as  a  board,  and  how  often,  and  if 
they  examine  and  approve  loans  and  discounts  at  such  times  or  not;  whether  they  have  active  dis- 
count and  examining  committees,  or  leave  management  entirely  to  the  officers ;  whether  annual  meet- 
ing of  shareholders  was  held,  and  if  election  of  directors  was  regular;  give  number  of  shares  repre- 
sented at  such  meeting;  any  vacancy  in  board  should  also  be  noted.] 

Records  show  meetings  of  board  as  a  rule  twice  each  week,  and  approval  of  loans  and  discounts. 
Board  by  committee  examine  bank  semiannually. 
The  last  election  seems  to  have  been  regular,  and  shares  voted  6,016. 

Mem.  :  Mrs.  J.  C.  Lucas,  widow  of  lat«  pres't,  owns  2,085  shares  of  the  stock,  and  the  father  ot 
Director  Tow  owns  775  shs.    H.  H.  Yard  owns  900  shares. 

Officers. 


' 

Names. 

No.  of 

shares 
owned. 

Liability  as 
payers  (indi- 
vidual or 
firm),  inclu- 
ding over- 
drafts. 

Liability  as 
indorsers  or 
guanintors. 

Salary. 

Bond 
(if  any). 

Other  occu- 
pation 
(if  any). 

President 

G.  W.  Marsh. 
John  Hayes  . . 

54 

2,000 
2,400 

3,500 

Cashier 

15,000 

[State,  so  far  as  you  are  able,  whether  the  officers  are  capable,  prudent,  and  of  good  reputation  o 
not,  and  wbether,  m  your  opinion,  their  management  is  efficient  and  successful,  or  otherwise.] 

umcers  were  bred  in  banks,  and  seem  to  have  enjoyed  good  reputations  and  much  popularitv:  too 
liberal  and  lacking  in  thoroughness  of  system  and  oversight. 

Books  and  accounts, 

i.i«  *^Jf  whether  necessary  books  are  used,  and  if  these  are  correctly  kept  and  promptly  posted,  and 
liow  often  accounts  aie  balanced  and  verified.]  *»   j  a~       .    "« 

i  Ji^?.l^*^*°?  ^^  1^^^^  *^**  *^^,*^'  ^^^  ^^  loosely  kept  heretofore.    During  the  last  few  weeks  great 
IKo«?  "^^  1  f°  V',^*"  ^^^""^  supervision  of  my  assistant,  who  has  been  constantly  on  duty  in 

the  bank  as  general  bookkeeper  and  manager  of  accts.  j       «*    j' m 

RESOURCES. 

1,  Loans  and  discounts. 


t'~R^  demand,  paper  with  one  or  more  individual  or  firm  names $ 

rn"  5®™^*^'  secured  by  stocks,  bonds,  and  other  personal  securities ".".'. 

D  ~  n   V™®'  P^P*''^  with  two  or  more  individual  or  firm  names , 

JJ— un  time,  single-name  paper  (one  person  or  firm)  without  other  security '/.'.'. 

V — n    l^^^'  secured  by  stocks,  bonds,  and  other  personal  securities . 

X  — un  time,  on  mortgage^}  or  other  real  estate  security  (see  schedule) 


Total. 


Included  in  the  above 


are— 


G.— Bad  debts,  as  defined  in  section  5204,  Eevised  Statutes  (see  remarks  below) . 

.a..— uiner  suspended  or  overdue  paper  (see  remarks  below) 

A — Liabilities  of  directors  (individual  and  firm)  as  payers  (see  schedule)!"!.'.'! 


1,210 

82,292 
568, 498. 33 
150,  830. 06 

20,500 


823, 330. 39 


18,058.11 
174, 996. 21 
26,  300 


(    ;  • 

t 


wi 


> 


V 


PW  iiH1 


128 


INVESTIGATION   OF   NATIONAL   BANKS. 


Loans  exceeding  the  limit  presciihed  by  section  5200  oj  the  Bevised  Statutes,  including 
amounts  which  exceed  this  limit  due  from  State  and  private  banks  and  bankers. 


Name  of  borrower. 

Enter  full 
amount 
of  loan. 

Name  of  borrower. 

Enter  full 
amount 
of  loan. 

H  H.  Yard      

$64, 500. 00 
48, 421,  92 

Estate  John  C.  Lucas : 

Direct 

t« 

$50,000 

Tnfln'ftftfc     . ................ 

70,000 

112, 921. 92 

120,000 

not 


[Describe  general  character  of  loans  and  discountH  usti  their  quality  and  the  value  of  collaterals  se- 
curing same,  especially  excessive  loans  and  others  suhjiit  to  criticism ;  state  whether  accommodations 
are  well  distributed  or  not;  and  if  large  loans  or  discounts  are  made  to  individuals,  firms,  or  corpora- 
tions, give  list  of  these,  including  all  loans  reaching  limit  prescribed  by  section  52(M).  Loans  which 
exceed  this  limit  should  be  entert^d  in  8che<lule  above,  and  loans  teeured  by  real  estate  should  be  fully  de- 
scribed in  schedule  furnished  for  this  purpose.  ] 

Collaterals  for  loans  are  not  '*  listed,^'  but  are  believed  to  bo  generally  sound. 

Accommodations  fairly  well  distributed. 

Mem:  $515,418.50ofdiscounted  paper  is  with  the  clearing  house  for  collateral  for  outstanding  loan 
certiticatos,  .$371,316.96  being  balance  from  $730,000  certificates  issued  to  the  bank.  The  difference  has 
been  paid. 

Suspended  or  overdue  paper,  iricluding  '^bad  debit"  at  defined  by  section  5904. 

[Describe  general  condition  of  such  paper,  and  state  whether  well  secured  or  not,  and  also  what  loss, 
if  any,  is  exi)ected  on  same. 

Due  from  April,  1888  to  Feb.,  1891,  106  notes $193,054.32 

Largestitem  "estatej.  C.Lucas" 50,000.00 

liYom  the  best  information  obtainable  it  is  my  opinion  that  with  vigorous  endeavors  the  above  is  col- 
lectible within,  say  $20,UU0. 

2.  Overdrafts. 

[State  whether  well  secured  or  not,  giving  total  of  each  class,  and  whether  habitually  granted  or 
_jt.  Overdrafts  exceeding  limit  named  in  section  5200  sliould  be  classed  with  excessive  loans,  and  un- 
secured  overdrafts  which  have  remained  unchanged  for  six  mouths  or  longer,  with  "bad  debts  "  as  de- 
fined by  section  5204.  The  amount  of  overdrafts  outstanding  at  date  of  examination  should  be  veri- 
fied by  the  examiner,  who  should  also  compare  the  amount  of  these  as  stated  in  the  bank's  last  report 
of  condition  with  the  amount  shown  by  its  books  at  same  date,  and  report  any  discrepancy  disco vere<l.l 

88  acs.— With  proper  energetic  effort  the  whole  amount  ($111,990.54)  could  be  collected  or  recovered 
at  a  loss  of  not  more  than  $2(»,0(M).    Of  these  $19,836.02  haveb^'en  outstanding  longerthan  six  months. 

The  practice  of  the  bank  in  this  direction  has  been  very  loose. 

8.  Banking  house. 

[State  wh(^ther  suitable  and  convenient;  for  what  other  purposes  used  (if  any);  and  if  owned  by 
bank,  whether  carried  at  fair  value  on  books  or  not;  and  whether  building  is  insured  or  not ;  also 
whether  vault  and  safe  are  good  and  8e<;ure,  and  used  by  the  bank  only  or  not;  and  whether  furniture 
and  fixtures  are  worth  book- value  or  not.] 

Spacious,  well  equipped,  and  centrally  located. 

Jan'y  9, 1891,  the  bank  took  the  building  for  $225,000  equity  in  same  (there  is  a  mortgage  of  $225,000 
on  it)  towards  debt  of  John  C  Lucas,  late  prest.,  dec'd.,  and' shortly  after  sold  it  for  $175,000. 

It  has  leased  the  entire  building  for  ten  years  for  $24,000  yearly,  and  insurance,  taxes,  and  repairs. 
Gross  rentals  now  received  from  whole  building,  $33,000. 

10a  11  f  and  12.  Dv^from  reserve  agents,  banks,  and  bankers. 

[Verify  all  balances  by  correspondence  on  blanks  furnished  for  this  purpose,  but  forward  report 
promptly  without  awaiting  verification.  Any  discrepancies  which  may  be  disclosed  should  be  re- 
ported by  letter  afterward.  If  any  amounts  are  represented  by  certificates  of  deposit  mention  these. 
Balance  with  State  and  private  banks  and  bankers  which  exceed  the  limit  fixed  by  section  5200  should 
be  classed  with  excessive  loan^."] 

Balances  verified  and  found  correct  as  now  given. 

17.  Cash  items. 

[State  whetherregular  or  not;  and  if  overdue  or  dishonored  paper,  expense  items,  or  the  like,  are  car- 
ried here,  briefly  describe  such  items.] 
Probably  good  within,  say,  $1,000, $16,414.15 

18.  Reserve. 

[State  whether  reserve  (in  bank  and  with  agents)  is  sufficient  at  date  of  examination  or  not;  give 
average  for  thirty  days  preceding  that  date  where  practicable,  and  describe  its  general  condition  sincQ 
last  examination.] 

Short.— AXmost  reduced  to  the  vanishing  point. 

Average  reserve. — For  last  30  days  10  per  cent. 

General  condition  of  reserve  since  last  examination.    Short, 


INVESTIGATION   OF    NATIONAL    BANKS. 

7.  Stocks,  securities,  claims,  etc. 


129 


Enter  num- 
ber of  shares 
of  stock  or 
face  value  of 
bonds,  and 
state  whether 
bonds  or 
st<K?ks. 


Name  of  corporation  issuing  stock, 
bonds,  etc. 


$100,000  5  per 
cent  bonds. 


The  Baltimore  Traction  Co 


Amount  at  I    ^  ..      .    , 
which      I    ■'Estimated 

carried  on   actual  market 
books.  ^»l"e- 


$100, 000 


State  whether  taken 

for  "debts  previously 

contracted,"  or 

otherwise,  and  if 

interest  or  dividends 

are  regularly  paid,  et<'. 


Sell $98,500..    For  debt. 


.*S'SS.^*h^«  '^^  *V^t*^®  ($458,900),  the  Sea  Girt  Land  and  Improvement  Co.,  N.  J    and  3  055  sh's 
($305,500)  the  bpnng  Lake  Beach  Improvement  Co.,  N.  J.,  taken /or  debt  of  J.  C  LvLs  de?d     Canit«l 
stiK-kofeach  company  IS  stated  at  $500,000,  but  of  the  first-named  only  4,tt  8hal2^a^^  been  i^^ 
and  of  the  last-named  only  3,838  shares.    So  far  as  I  have  been  able  to  LcertainTw  shares  mor^^^^^^ 
Spring  Lake  Co.  it  is  expected  will  be  obtained  by  the  bank  as  part  of  toe  settlement 
rhl^e'rJ'Th'lft^^^i,^'  shares  of  the  Sea  Girt  Co.  and  383  shares^of  the  Spring  Lake  Co.)  belong  topur- 
Sprin?Lake  N. T  *  ^^'^  companies  own  consists  of  800  acres  at  S^  Girt  a^diomSoX  It 

Valuation  on  this  report 4700  oqq 


800,000 


9.  Other  real  estate  and  mortgages  oicned. 


Deacril>e  property,  state 

form  of  conveyance,  and 

from  whom  obtained. 


Amount  at 
which 

carried  on 
books. 


Amount  of 
prior  lien 
on  prop- 
erty, if  any 


Estimated 

actual 

value  of 

property. 


Date  when 
acquired. 


State  whether  taken  for 

"  debts  previously 
cx)ntracted,"  or  other- 
wise. 


Looms  and  discounts  secured  by  real  estate—Mortgages  or  other  liens  on  realty. 


Give  name  of  borrower, 

describe  property,  and 

state  form  of  conveyance. 


Amount  at 
which 

carried  on 
books. 


Amount  of 
prior  lien 
on  prop- 
erty, if  any. 


Estimated 

actual 

value  of 

property. 


Date  when 
acquired. 


State  whether  taken  for 

"debts  previously 
contracted,"  or  other- 
wise. 


LIABILITIES. 

1.  Capital  stock. 

WmMrMmmmm 

stock  ledeer  and  certificate  book  verified.  * 

Bank  holds  none  of  its  own  stock  as  collateral. 
1  ne  capital  stock  is  seriously  impaired. 

2  and  3.  Dividends  and  surplus  (sections  5199  and  5204  U.  S.  Revised  Statutes), 

|Sg«ii»?xT„.LrnSTor^^^^  ,  , 

aeL'iSrrti?h?sT  "'^'  ''^  '^"'  ^'^"^'  "^^  d;.?S?^Tvife^t  t^fSfthltrrel^: 

Manifestly  the  bank  must  suspend  dividends. 

4y  5,  and  6.  Due  to  reserve  agents,  banks,  and  bankers. 
Prlmplff  ^tW  awa?tTn™iKlon''  Xnv  H''^"  furnished  for  this  purpose,  but  forward  report 


^1 


"''''''"'^s-.s«r!^^~S-=-^^^^^^^^ 


Accounts  vi'iiiled,  due  on  opeiTaccouniU, 

7392 9 


amounts  are  due  on  open  account,  or  on  demand  or  time 


^  ■ 


:-:.J- 


130 


INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


lai 


liiif- 


m 


8.  Individual  deposits. 

Klf  I  verSSl  by  tbe  exan.iner,  an<l  «ny  di.rr.pai.ry  .lisrcvred  nhouhl  be  noted  in  hi8  report.] 
Bank  owes  the  Central  Trust  Co.  $40,mM»  on  rert.l.cate  ot  <l"lH)«t- 

»:STc'Sl;!.X''!;i- r^JifK  ™..r,  o,  »n,.  on  WW. 

"'it  ttu";;'  7;h;';7,:;orSa:ip&r^^"arriiy  of «..  cuy  co„ncns,  ke«p. .«« or  ws ««., 

aceountH  with  this  bank. 
Balance  to-day  to  his  credit,  $579,000. 

13  and  14.  Borrowed  money. 

Wrofdiieitors     T^TSce  o^^^      »>»"'>^  i"  *''"«  ^««1>««*  *»^"  *»««"  iiregnlar,  secre*,  and  dangeTOUS. 

RECAPITULATIONi. 
r«;t«t..  in  -,11  cises  briefly  your  opinion  a«  to  general  condition  of  the  bank   and  whether  it«  busi- 

able  losses,  givinjr  amount  ot  each.] 

(ieneral  condition  of  the  bank,  highly  unsatisfactory. 

Items  showinc  impairment  of  capital:  *50  000.  00 

FalsecreditwitbCbase.Nat.  Bank  New  \;"1^  •  •    ■  ■ 'S  700  (W 

TradesmensXat.  Bank,  iscw  Yi.rk S'ooooo 

Loss  sustained  on  salt-  of  bank  building - ill' 954  19 

On  due  bill  account  (a  myst.  ly.  or  a  pool  lor  losses) i^*.   ^  • 

Short  in  bills  disct'd  a»«  (lunt  (not  yet  discovered) - -■- ••-••  '"'"'     "^ 

Me         This  kern  is  within  nr.lbability  of  discoyery,  althougli  much  search  has  not  re- 

veall'd  it.     It  is  doubtful  whctiur  this  should  be  classed  as  entirely  a  loss.  ^  ^^^  ^^ 

Necessary  to  ail.iust  the  accounts ' 

386, 691. 98 

W.  P.  Drew, 

Examiner. 

To  the  COMPTUOLLEn  of  the  CrRHKNCV. 

WanhiiKjton,  D.  C. 


Trkascry  Departmknt, 

Ol  KICK   OF  COMPTKOLLEU  OF  THE   CUUKENCY. 

Washingion,  D.  C,  March  3,  1891. 

^'"*  ^]ra/io;m7^^aMrSn«i»fr,  8939  Chestnut  Street,  rhlladelphia,  Pa.: 

Sir-  I  -im  in  recoil)!  «)f  vour  report  of  tbe  examination  of  2291  under  date  of  Fcb- 

niarv'^^Sth  :  also  your  letter  of  the  same  date  referring  to  that  bank. 
I  return  herewith  th<.  plat  of  Sea  Girt  and  Sprinj;  Lake  as  requested. 
It  LXo  ntelv  necessliry  that  something  be  done  in  this  matter  >yithout  further 

delay      Unless  some  other\yay  ean  be  found  to  put  the  bank  in  tunds  I  shall  imme- 

UatelV  or  le?  ail  assessment  of  fifty  per  cent  upon  the  capital  stock      Unless  arrange. 

ents  are  made  by  the  direct«ns  and  large  stockholders  >vbo  understand  the  situation 

Hhe  bank,  to  put  this  money  into  the  bank  on  the  day  that  the  assessment  becomes 

puS,  a  rm,  Avill  no  doubt  ensue,  ^vhich  will  necessitate  youi  taking  possession  oi 

'*?^i?;ou  wouid^al? ih"  a^^^  of  the  board  of  directors  of;^this  bank  to  this 

lotteT  mmediately  upon  its  receipt  and  say  to  them  that  I  cannot  delay  action  in  the 
Inatter ToTiger  than  the  time  necessary  for  me  to  hear  from  them  m  reply  to  this  com- 

""  It  Irev^dent  that  lifty  per  cent  is  the  very  least  amount  I  could  state  the  deficit  at. 
If  it  should  prove  hereafter  that  the  assets  are  worth  more  than  now  estimated,  or 
if  addSl  amounts  are  obtained  from  persons  indebted  to  tiie  trust,  these  amounts 
wS  inure  to  the  benelit  of  the  shareholders  by  forming  the  nucleus  ot  a  surplus 
fund  which  ^vould  increase  the  value  of  the  shares.  ^^     ,      •  1      + +1  ^ 

If  the  directors  and  large  shareholders  desire  t<»  continue  the  business,  and  get  the 
benefit  of  the  good  wiU,  ^vhich  is,  no  doubt,  of  some  value  they  must  decide 
promptly.     I  cannot  permit  the  bank  longer  to  doi)usiness  with  its  capital  so  greatly 

'"it^^s  well  for  the  stockholders  to  remember  that  the  assets  of  the  bank  will  be 


much  more  valuable  if  the  bank  continues  business  than  if  it  is  closed  and  settled 
up  by  a  receiver.  In  the  latter  case  they  might  suffer  from  a  large  assessment  on 
account  of  their  individual  liability. 

It  seems  to  me  quite  clear  that  l)oth  the  directors  and  stockholders  will  find  it  to 
their  interest  financially  to  exhibit  the  proper  amount  of  courage  at  this  time,  and 
place  the  bank  again  in  good  credit;  otherwise,  heavy  losses  and  great  scandal  will 
ensue,  resulting  in  damage  to  the  rejiutation  of  all  who  have  been  connected  with 
the  bank  during  its  period  of  mismanagement. 

In  the  meantime,  you  will  maintain  a  supervision  of  the  affairs  of  the  association, 
prepared  to  take  possession  instantly  in  case  a  mn  should  commence,  which  would 
inevitably  result  in  suspension. 

Your  early  reply  to  this  letter  is  desired. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


Keystoxe  National  Bank, 

Philadelphia,  March  4,  1891, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency: 

Dear  Sir:  Your  instructions  to  Mr.  Drew  were  read  by  him  to  the  board  and  the 
largest  stockholders  of  the  bank  this  morning.     A  committee  will  visit  you  on  Fri- 
day, reaching  your  office  at  12  m.,  if  that  hour  is  convenient,  to  explain  to  you  the 
probable  payment  of  the  amt.  without  further  publicity. 
Very  respectfully, 

G.  W.  Marsh. 
By  Mr.  Gate  : 

Q.  The  clearing-house  indebtedness  is  in  the  report  of  Febniavy  28 
and  February  16,  but  not  in  the  report  of  January  24.— A.  This  letter, 
dated  on  the  4th,  or  possibly  on  the  6th  of  March,  speaks  of  a  commit- 
tee that  was  to  visit  me.  The  committtee  did  visit  me,  and  consisted 
of  Mr.  Haines,  Mr.  Huey,  attorney  for  Mrs.  Lucas,  and  Mr.  Marsh.  In 
our  conversation  it  was  agreed  that  if  I  would  make  an  assessment  for 
$250,000  they -would  agree  to  place  that  amount  in  the  bank  and  await 
tlie  returns  of  collections  from  individual  shareholders.  Consequently, 
on  March  7,  I  made  an  assessment 

By  the  Chairman  : 
Q.  Will  you  rea^l  that  notice  of  assessment? 
Tlie  Witness  read  the  notice  of  assessment  of  March  7, 1801. 

Treasury  Department, 

Office  of  Comptroller  of  tiik  Currency, 

„     ^  Washington,  D.  C,  March  7th,  1891. 

Mr.  G.  W.  Marsh, 

President  Keystone  National  Bank.  Philadelphia,  Pa. : 

Sir:  I  inclose  herewith  notice  of  an  assessment  of  $250,000  levied  upon  your  asso 
elation  to  make  good  an  imjiairmeut  of  capital  for  that  amount. 
Respectfully,  yours, 

*  -  E»  S.  La€b*', 

Comptroller. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  7,  1891. 
Whereas,  it  appears  to  the  satisfaction  of  the  Comptroller  of  the  Currency  that 
the  capital  stock  of  the  Keystone  National  Bank,  Philadelphia,  Pa.,  has  become  im- 
paired to  an  extent  which  makes  necessary  an  assessment  of  two  hundred  and  fiftv 
thousand  dollars  ($250,000)  upon  the  shareholders  of  said  association  to  make  good 
such  deficiency:  Now,  therefore, 

Notice  is  hereby  given  to  said  association,  under  the  provisions  of  section  5205  of 
tne  Revised  Statutes  of  the  United  States,  to  pay  the  said  deficiency  in  its  capital 
stock  by  assessment  upon  its  shareholders  pro  rata  for  the  amount' of  the  capital 


1  '1 


liii^' 


132 


INVESTIGATK^N    OF    NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


133 


:t:  ■" 


Stock  held  by  each,  and  if  such  deiiciency  Bhall  not  bo  i)aid,  and  Kaid  bank  shall 
refuse  to  go  into  liquidation,  as  piovidea  by  law,  for  three  months  after  this  noti<«e 
shall  have  been  received  by  it,  a  receiver  will  be  appointed  to  close  up  the  business 
of  the  association  according  to  the  provisions  of  section  5234  of  the  Kevised  statutes 

of  the  United  States.  ,     ^ 

In  testimony  whereof  I  have  hereto  subst  libed  my  name  and  caused  my  seal  ot 
ottice  to  be  aflixed  to  these  presents  at  the  Treasury  Department,  in  the  city  of 
Washinirton  and  District  of  Columbia,  this  seventh  day  of  March,  A.  D.  l«yi. 
**  E.  S.  Lacey, 

Comj)lroUer  of  the  Currency. 

To  the  Keystone  National  Bank, 

Fhiladvlphia,  Pa, 

A.  They  had  advised  me  that  they  would  take  up  that  amount.  This 
was  prior  to  the  7th,  and  on  the  13th  I  had  not  received  any  informa- 
tion, and  I  wrote  them  and  received  a  response  from  Mr.  Drew  under 
date  of  March  14.  It  appears  all  the  way  through  that  Mr.  Drew  was 
in  consultation  with  the  committee  and  was  favorable  to  the  pohcy 

pursued. 

March  13,  1891. 

Mr.  W.  P.  Drew,  „  ^...  .  ,  ..      ,, 

National  Bank  Examiner,  SDSD  Chestnut  Street,  Philadctplua,  Pa.: 

Sir:  On  7th  instant  I  made  an  assessment  np<m  the  Keystone  National  Bank  at 
Philadelphia,  in  the  sum  of  $250,000,  to  make  good  an  impairment  of  tlieir  capital 

Will  you  please  advise  me  what  has  been  done  in  the  matter,  and  what  amount,  if 
any,  has  been  paid  in  to  make  j;ood  the  deficiency.  Give  me  all  the  facts  touching 
upon  the  condition  and  prospects. 

Verj.  respoctluUy,  ^   ^   ^^^^^^ 

Comptroller, 


PHiLADELrniA,  March  14,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  v.  C: 

Sir:  In  answer  to  your  letter  of  the  13th  instant,  I  have  the  honor  to  report  that 
your  order  of  the  7th  for  an  assessment  of  $250,000,  to  make  good  impairment  of  the 
capital  stock  of  the  Keystone  National  Bank  of  thin  city  was  duly  received  by  the 
president,  and,  on  the  following  day  (the  8th)  was  laid  before  the  board  of  directors, 
and  its  purport  communicated  to  some  of  the  other  large  stockholders. 

Beyond  expressing  a  purpose  to  secure  the  required  amount  as  soon  as  practicable, 
the  board  has  not  as  yet  inaugurated  any  measures  to  obtain  it,  and  no  portion  has 
been  paid  in.  Although  the  old  board  of  eleven  members  was  re-elected  in  January 
last,  several  of  them  have  failed  designedly  to  qualify,  or  have  tendered  their  resig- 
nation. Among  them,  D.  P.  S.  Nichols,  who  I  had  hoped  would  accei)t,  tor  the  time 
being  at  least,  the  vice-presidency,  and  who  is  president  of  '^The  Central  Trust  Co., 
with  quarters  in  the  same  room  with  the  bank,  and  Charles  McFaddon,  who  rendered 
much  assistance  to  the  bank  in  the  ''run"  of  last  December,  are  the  most  important. 

Mr.  Nichols  owns  250  shares  stock  of  the  bank  and  Mr.  McFadden  700  shares. 
While  they  decline  to  continue  as  directors,  they  express  full  concurrence  in  the  ex- 
pediency of  the  assessment,  and  will  readily  pay  their  proportion  when,  as  they  say, 
other  large  stockholders  will  pay  theirs.  These  declinations  further  to  serve  as  di- 
rectors on  their  part,  as  well  as  an  apparent  disposition  of  the  others  who  remain  in 
the  board,  with  the  exception  of  Mr.  Haynes,  who  owns  991  shares  of  the  stock  of 
the  bank  to  put  the  entire  labor  and  responsibility  of  the  resuscitation  of  the  bank 
on  the  president,  render  united  and  zealous  cooperation  on  their  part,  at  least  lor 

the  present,  out  of  the  question.  .       ,      ,        ■,      -xu    xi  a 

I  have  earnestly  endeavored  to  supply  the  vacancies  in  the  board  with  other  and 
desirable  men,  but,  under  the  circumstances,  few  such  are  available.  A  suggestion 
was  made  yesterdav,  coming  from  three  stockholders— Mrs.  J.  C.  Lucas,  2,100 
shares;  Mr.  Haynes,' 991  shares,  and  Mr.  Yard,  950  shs. ;  total,  4,041  shares— to 
transfer  during  the  i)resent  month  without  consideration  to  the  bank  all  these 
shares,  which  the  bank  could  use  for  its  own  benetit  representing,  at  par  value,  more 
than  $200,000.  I  declined  to  entertain  the  proposition,  as  it  was  crudely  stated,  and 
as  (myself)  being  in  doubt  what  the  practical  eti'ect  would  be  towards  replacing  the 
deficiency  in  capital.  The  matter  may  be  formulated  fully  and  submitted  to  you. 
All  otfer  for  $350,000  for  the  principal  part  of  the  property  at  Sea  Girt  will,  I  un- 
derstand from  the  attorney  of  the  parties  offering,  be  soon  resubmitted,  and  1  have 


advised  acceptance  by  the  bank  of  the  offer,  as  it  is  represented  to  be  a  cash  offer 
\\  hat  will  come  of  this  it  is  now  impossible  to  say. 

It  is  still  confidently  expected  that  during  the  present  month  payment  of  $70,000 
will  be  made  to  the  bank  for  the  camp  ground  sold  at  Sea  Girt  to  the  State  of  New 
Jersey. 

The  condition  of  the  bank  remains  practically  unchanged  since  my  last  report 
Its  settlements  are  made  regularly  Avith  the  clearing  house,  often,  however,  bv 
draining  the  bank  of  nearly  all  of  its  available  funds  in  the  morning.  The  commit- 
tee have  daily,  almost  hourly,  knowledge  of  the  condition  of  the  bank,  and  are  dis- 
posed, and  so  state,  to  favor  the  bank  in  all  endeavors  for  recovery,  so  far  as  is  con- 
sistent with  protection  to  the  exchanges. 

Outside  of  the  account  of  the  city  treasurer,  who  has  all  along  endeavored  to  as- 
sist the  bank  so  far  as  he  properly  could  by  putting  in  every  day  checks,  etc.,  in 
the  bank  to  cover  so  far  as  possible  his  drafts  the  next  day  through  other  banks  or 
the  Keystone  National  bank,  the  individual  deposits  have  diminished  since  February 
loth  ult.  a  little  more  than  $200,000. 

A  large  amount  could  be  collected  from  overdrafts  and  overdue  paper,  and  shortly 
if  the  directors  of  the  bank  would,  as  I  have  repeatedly  suggested,  take  the  work 
into  their  own  hands,  instead  of  placing  it  on  the  president,  who  is  absorbed  in  other 
matters  necessarily  connected  with  conduct  of  the  bank  under  the  present  embarrass- 
ing circumstances,  $100,000  at  least  could  be  collected  from  thes^  sources  within  a 
slK.rt  time  I  have  thought  of  attending  to  these  matters  myself,  but  have  refrained 
Irom  tear  of  exciting  apprehension  and  public  unfavorable  remark.  I  am  at  the 
bank  daily,  but  have  omitted  lately  any  constant  stay  there  for  obvious  reasons  I 
have  a  report  every  evening  from  the  general  bookkeeper,  who  has  been  my  chief 
assistant  There  does  not  appear  to  be  any  uneasiness  among  the  patrons  of  the  bank, 
but  at  the  least  evideiice  of  a  threatened  ''run"  I  will  faithfully  obey  your  direc- 
tions and  close  the  bank  and  take  charge  of  its  affairs. 

I  am  greatly  disappointed  in  finding  so  little  active  support  given  by  the  directors 
in  the  efiort  to  rehabilitate  the  bank,  and  at  times  am  fearful  that  the  continued 
strain  under  which  the  president  unavoidably  labors  may  result  in  a  sudden  and 
hopeless  breaking  down  of  his  physical  energies.     He  seems  well,  however. 

It  you  can  make  such  orders  upon  the  directors  of  the  bank  as  will  compel  an 
earnest  and  eliective  cooperation  on  their  part.  I  shall  be  glad  to  enforce  them. 
J  ifty  shares  ot  the  stock  ot  the  bank  were  sold  last  week  for  $.30  per  share,  and  since 
that  time  some  oilers  to  purchase  the  controlling  interest  in  the  bank  have  been 
made  by  strong  parties,  but  as  the  stock  is  underassessment  such  offers  can  not  be 
considered  without  working  disclosure  of  the  assessment.  Possibly  something  may 
come  of  these  propositions  eventually.  **     ^ 

I  will  write  you  often  reporting  progress,  when  any  is  made,  or  any  changes  affect- 
ing the  general  condition  of  the  bank.  '  j  » 

The  haste  with  which  I  have  been  obliged  to  write  in  order  to  mail  this  letter  so 
you  can  receive  it  on  Monday  must  be  my  excuse  for  the  appearance  of  this  letter. 
Very  respectfully, 

W.  P.  Drew, 
National  Bank  Examiner. 

Here  is  a  letter  from  the  president,  dated  March  14,  1891. 

[G.  W.  Marsli,  president.    John  Hayes,  cashier.    Chas.  Lawrence,  ass't  cashier.] 

Keystone  National  Bank, 
1320  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint, 
^  PhiladcJijhia,  Meh.  14,  1S91. 

Dkar  Sir:  I  forwarded  the  printtMl  report  to-day,  and  you  will  find  we  have  de- 
ducted from  the  overdrafts  100,000,  and  added  it  to  claims: 

^  We  know  we  can  and  in  fact  have  already  eollected  a  la^rge  number  of  them,  and 
we  thought  we  could  honestly  call  that  am't  at  least  a  claimT 
Yours,  truly, 

G.  W.  Marsh. 

Q.  Does  that  refer  to  a  report  from  tlie  bank  ?— A.  I  do  not  know 
Q.  What  is  the  date  of  it'l—A.  It  is  dated  xMarch  14. 
^.  It  refers  to  a  proof  of  publication.— A.  It  is  a  report  of  condition 
lor  h  ebruary. 

By  the  Chairman: 

Ti  '''^^,^^^'^^  report  I  have  here  is  the  December  report. 

lUe  1^  ebruary  report  was  inserted  at  this  point,  and  marked  ^<No.  C." 


ill 


134 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


135 


It     Wi 


1'^ 


Exhibit  6,  April  29,  1892. 
[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

No.  of  bank,  2291. 

Report  of  the  condition  of  The  Keystone  NaVl  Bank,  at  PhiJada.,  in  the  State  ofPenna.,  at 

the  close  of  business  on  the  iS6  day  of  Feb.,  1S91. 


Dr. 


C*. 


Kesoiirces. 


3 


1 .  LoaiiH  and  di.scount.s  (sen  schedule) . 

2.  Overdral'ts  (see  schedule) 

U.  S.  bonds  to  secure  circulation 

(par  value)  —  per  cents  — ; 

per  cents 

TJ.  S.  bonds  to  secure  deposits  (par 

value)  —  per  cents 

tJ.  S.  bonds  on  hand  (par  value) 

—  per  cents 

Storks,  securities,  claims,  etc.  (see 

schedule) 


7.  Due  from  approved  reserve  agents 

(see  schedule) 

8.  Due  from  other  national  banks — 

9.  Due  from  State  and  private  banks 

and  bankers 

10.  Banking  house $ 

11.  Furniture  and  fixtures $ 


Dollars. 


1,191,202.99 
120,  724.  39 


50,000 


12 


Other  real  estata  and  mortgages 
owned  (see  schedule) 

13.  Current  expenses  and  taxes  pai«l. . 

14.  rremium  on  bonds  for  circulation 

$               ;  premium  on  other  U . 
S.  bonds  $  


15.  Checks  and  other  cash  items  (see 

schedule) 

16.  Exehan^iji's  for  clearing  house 

17.  Bills  of  other  banks 

18.  Fractional  paper-curreuey,  nickels, 

and  cents 

19.  Specie,  viz — 

Gold  coin $  1,490.50 

Gold  Treasury  certifi- 
cates   $ 

Gold  clearing-house 
certihcates $ 

Silver  dollars $3,715 

Silver  Treasury  cer- 
tificates  $22,500 

Fractional  silver  coin. $  4,720.75 


20. 
21. 


22, 


23 


Legal  tender  notes • 

United  States  certificates  of  .de- 
posit for  legal  tender  notes  (sec. 
5193, Rev.  Stat.) 

Redemption  fund  with  U.  S. Treas- 
urer (not  more  than  5  i)er  cent, 
on  circulation) 

Due  from  U.  S,  Treasurer  (other 
than  5  per  cent  redemption  fund) 


Total 


800,000 


46, 782. 52 
53,  511. 62 

3, 297. 01 


10,000 


35, 974. 40 


2,000 


61,370.02 

115.771.79 

488 

734.20 


Liabilities. 


1.  Capital  stock  paid  in. 


Surplus  fund 

Undivided  profits 


Circulating  notes  re- 
ceived from  Comp- 
troller   $ 

Less  amount  on  hand 
and  in  Treasury  for 
redemption  or  in 
transit $ 


Dollars. 


500,000 

100,000 
20,664 


32, 426. 25 
1,580 


2,250 


2,528,113.19 


6. 

7. 

8. 

9. 

10. 
11. 


12. 
13. 


14. 

15. 
16. 


17. 

18. 


State  bank  circulation  outstanding 
Dividends  unpaid 


Individual  deposits 

subject  to  check  .$1,  356, 464.  70 
Demand  certificates 

of  deposit $      49,401.91 

Time  certificates  of 

deposit '. $ 

Certifietl  checks $ 

Cashier's        checks 

outstanding $      59,728.78 


45,000 
6,120 


Uniteil  States  bonds 

I)t;posits  of  U.  S.  disbursing  «)ffi- 
cers 


Due  to  approved  reserve  agents 

(see  schedule) 

Due  to  other  national  banks 

Due  to  State  and  private  banks 
and  bankers 


Notes  and  bills  rediscounted . 
Bills  payable 


Clearing-house  loan. 


Total 


1,465,595.39 


4, 677. 78 
1, 639. 56 

384,416.46 


2,528,113.19 


I  Jno.  Hayes,  cash,  of  "The  Keystone  National  Bank,  PhiladeljihiH,  Penna."  do  solemnly  swear 
that  the  above  stati^ment  is  true,  t(»  the  best  of  my  knowledge  and  belief,  and  that  the  scluMlules  on 
back  of  the  report  have  been  carefully  tilled  out  and  fully  and  correctly  i-epresent  the  true  state  ol  the 
several  matters  therein  contained. 


Correct. — Attest : 


State  of  Pennsylvania,  County  of  Philadelphia : 
Sworn  to  and  subscribed  before  me  this  tenth  day  of  March,  1891. 

[SEAL.] 


'  Jno.  Hayes,  Cashier. 

G.  M.  Marsh, 
G.  B.  Haines, 
Chas.  C.  Tore, 

Directors, 


Theo.  H.  McCalla, 

Notary  rublie. 


Must  be  acknowledged  before  an  officer  using  an  ofllcial  seal.    See  act  approved  Feb.  26,  1881. 


[Fill  all  schedules,  writing  in  the  word  "none"  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 
X^oang  and  discounts. 


On  demand,  on  U.  S.  bonds $ 

"  "   stocks,  bonds,  and  other  personal  securities $ 

On  time.  ]»aper  with  two  or  nmre  individual  or  firm  names $ 

"      "      single-name  paper  (one  person  or  firm)  without  other  security $ 

"       "      seciu-ed  by  stocks,  bonds,  and  other  personal  securities $ 

"      "      on  mortgages  or  other  real-estate  security  (see  schediile) $ 


Total. 


Included  in  the  above  are — 

Had  <lebts,  as  defined  in  section  5204,  Rev.  Stat $    7, 000 

Other  sussended  and  overdue  pajjer $179,  725. 82 

Liabilities  of  directors  (individual  and  firm)  as  payers  ..$  24,  500 


84, 620 

203, 622. 77 
62,  713.  72 


Enter  the  amount  in  each  of 
these  three  items,  or  write  in 
the  word  "none"  if  there  is  no 
amount  to  enter. 


Loans  exceeding  the  limit  prescribed  by  section  52()0  of  the  Revised  Statutes,  including  amounts  which  ex- 
ceed this  limit  due  from  State  and  private  banks  and  bankers. 


None. 


Stocks,  securities,  claims,  etc. 


Enter  number 

shares  of  stock 

or  face  value 

of  bonds. 


100— .$1,000 

Cap.  .500  M. 

"    500  M. 


Name  of   <>ori>oration  issuing   stock, 
bonds,  etc. 


Baltti.  Traction  Co  . 
Sea  Girt  Imp.  Co  . . . 
Spring  Lake  Ini.  Co 


Auutunt  at 
which  car- 
ried on 
books. 


100,000 
700,000 


Estimated 

actual 

market 

value. 


State  whether 
taken  for  "debts 
previously  con- 
tracted,"  or  other- 
wise. 


100,  000 
700,000 


Debts  pr.  Con. 


Balances  due  from  or  to  approved  reserve  agents. 


From— 
Enter  name  and  location  of  bank. 

Amount. 

i 

To- 
Enter  name  and  location  of  bank. 

Amount. 

Trademen's  Nat.  Bk 

37,171.63 
9, 610. 89 

Chase,  N.  Y 

Cheeks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc..  In 

this  city 

Checks  and  drafts  on  other  banks 


58, 309. 59 
3, 060. 43 


Average  reserve  and  interest.- Average  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  11  ])cr  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3 
per  cent,  on  money  borrowetl  is per  cent. 

Overdrafts. 


Secured : 

Standing  12  months  or  over 

tt  o  t(  it 

ii  1  I.  t( 

Temjwrary 


Unsecured : 

Standing  12  months  or  over 

(t  3  K  It 

"  J  It  (I 

Temporary 


J 


'VI 


V] 


136 


INVESTIGATION   OF   NATIONAL   BANKS. 


Other  real  estate  and  mortgagee  otimed. 


Describe  property,  state 

fomi  of  couveyaiict',  and 

from  whoiu  o'btuiiied. 


Amount  at  |  Amount  of 
which  car-  iprior  lien  on 


riea  on 
books. 


property, 
if  any. 


Estimated  ! 
actual       Date  when 


value  of 
property. 


acquired. 


State  wlnther  taken  for 
"debts  previously  con- 
tracted," or  otherwise. 


Loant  and  discounts,  secured  by  mortgages  or  other  real-estate  security . 


Describe  property,  state 

fonn  of  conveyance,  and 

from  whom  obtained. 


Amount  at 
which 

carried  on 
books. 


Amount  of 

prior  lien  on 

pr()perty, 

if  any. 


Estimated 

actual 

value  of 

property. 


Date  wben 
approved. 


State  whether  taken  for 
"  debts  nrevionsly  con- 
tracted,   or  otherwise. 


(Indorsed:)    Banks  will  not  fill  up  indorsements. 
Natl  Bank,  of  Philadelphia,  Penna.,  Feb'y  26,  1891. 


Xo.  of  bank,  2291.    Report  of  the  Keystone 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington^  D.  C,  March  17 j  1891, 
Mr.  William  P.  Drew, 

Examiner  of  National  Banks,  3939  Chestnut  St.,  Philadelphia,  Pa.: 

My  Dear  Sir  :  I  am  in  receipt  of  your  favor  of  the  14th  instant,  wliich  I  have  read 
very  carefully. 

The  condition  of  No.  2291  is  such  that  I  must  insist  upon  the  prompt  payment  of 
the  larger  part  of  the  amount  of  their  assessment  within  the  next  five  days,  or  else  I 
shall  feel  called  upon  to  take  peremptory  action  towards  bringing  the  matter  to  a 
determination  one  way  or  the  other. 

I  do  not  feel  at  liberty  to  allow  matters  to  proceed  any  further  under  the  conditions 
which  now  exist,  and  you  will  please  so  inform  the  parties  in  interest  without  delay 
and  advise  me  of  their  reply. 

I  am  very  much  surprised  to  learn  that  Mr.  Nichols  and  Mr.  McFadden  have  re- 
signed as  directors  of  the  bank,  as  I  was  led  to  understand  while  I  was  in  Phila- 
delphia that  they  were  to  be  the  principal  agents  in  bringing  the  bank  back  again 
into  line.  I  supposed,  from  assurances  given  me  by  Mr.  MnrHli,  Mr.  Huey,  and  Mr. 
Haynes,  that  the  amount  of  the  assessment  would  be  paid  into  the  bank  within  a 
very  few  days  from  the  time  they  received  my  communication. 

The  directors  of  the  bank  should  understand  that  their  failure  to  qualify  after 
their  last  election,  or  their  resignation  at  this  time,  will  not  in  any  manner  protect 
th«m  from  their  responsibility  as  directors  during  the  period  when  the  losses  occurred 
to  the  bank. 

It  seems  to  me  that  if  they  thoroughly  understood  their  interests  they  would 
realize  that  promptness  and  courage  would  be  in  the  end  the  wisest  and  cheapest 
way  in  which  they  can  escape  from  the  present  dilemma. 
Very  respectfully, 

E.  S.  Lacey, 

ComptroUci'. 

Philadelphia,  March  18,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

Sir:  Your  letter  of  the  17th  instant,  referring  to  No.  2291,  was  duly  received  and 
its  terms  communicated  to  the  board  of  directors  and  to  certain  other  stockholders. 

They  state  that  they  recognize  the  imperative  nature  of  the  instructions  and  will 
endeavor  to  comply  therewith  within  the  specified  time. 

There  has  been  no  change  in  the  condition  of  the  bank  of  any  importance  since 
my  letter  to  you  of  the  14th  instant. 

I  will  advise  you  daily  of  progress  made  in  the  desired  direction,  and  meanwhile 
will  employ  my  best  endeavors  to  assist  to  that  end. 
Very  respectfully, 

W.  P.  Drew, 
National  Bank  Examiner. 


INVESTIGATION   OF   NATIONAL   BANKS. 


137 


A.  Mr.  Marsh,  president  of  the  Keystone  Bank,  came  to  Washington 
on  the  19th  of  March  and  called  at  my  house  about  6  or  7  o'clock  in  the 
evening.  He  told  me  that  there  were  certain  amounts  of  overissued 
stock  of  the  bank  in  existence  about  wliich  he  felt  he  ought  to  inform  me 

•!J^^^*^  ?^  ^  ^^^  *^^*  ^^-  ^^^'^^  ^^^^"^  his  lifetime  was  interested 
with  Mr.  John  Wanamaker  in  a  deal  connected  with  Eeading  Railroad 
stock,  If  I  recollect  correctly;  and  that  in  order  to  supply  the  monev 
necessary  to  carry  on  that  deal  Mr.  Lucas  furnished  Mr.  Wanamaker 

^^^^^t'  ^^^  ^*^^"  ^^  ^^^^^  ^^^  money  he  had  furnished  certain  shares. 
Mr.  Wanamaker  had  used  these  shares  to  borrow  money  on  with  which 
to  carry  part  of  that  deal.  He  said  that  stock  was  still  in  existence, 
and  that  until  that  could  be  retired  there  was  no  use  talking  about 
resuscitating  the  bank.  He  told  me  that  he  had  seen  Mr.  Wanamaker 
and  that  Mr.  Wanamaker  had  declined  to  return  the  stock. 
•<^«  *  P^T  ^^  ^^^^  ^^^  reason  why  Mr.  Wanamaker  did  not  surrender 
u  r^*  n  °^  reporting  the  conversation.  The  only  reason  he  gave  me 
why  he  thought  Mr.  Wanamaker  ought  to  surrender  the  shares  was 
because  Mr.  Wanamaker  had  been  a  customer  of  the  bank  many  years 
ago,  and  that  under  the  circumstances  he  ought  to  be  lenient  and  sur- 
render the  shares. 

Q.  There  was  no  suggestion  made  by  you  that  this  stock  was  an 
overissue?— A.  He  told  me  distinctly  that  it  was  an  overissue  and  I  so 
stated.  He  reported  to  me  that  he  had  made  an  arrangement  with 
Mr.  Wanamaker  by  which  he  was  to  pay  a  certain  amount  of  monev 
and  transfer  certain  property  to  him,  whereupon  Mr.  Wanamaker  wa*s 
to  surrender  the  stoc^k,  but  that  Mr.  Wanamaker  had  recently  informed 
liim  he  could  not  carry  it  out,  and  consequently  he  had  come  to  inform 
me  of  the  existence  of  that  stock. 

By  Mr.  Wike  : 

Q.  Whatwas  thedate  of  that  ?— A.  It  was  March  19, 1891.  He  thought 
It  was  a  hardship  that  Mr.  Wanamaker  would  not  carry  out  his  a^-ree- 
ment,  inasmuch  as  Mr.  Wanamaker  was  a  personal  friend  and  had  re- 
ceived accommodations  at  the  bank.  I  heard  what  he  had  to  say  in 
relation  to  the  matter,  and  revolving  it  in  my  mind  I  concluded  I  would 
intorm  the  Department  of  Justice  of  the  situation  of  affairs.  I  was 
satisfied  he  had  not  been  faithful.  He  had  deceived  me  as  to  the  losses 
sustained  by  the  bank  and  its  condition.  I  made  up  my  mind  that  I 
could  not  give  the  matter  of  the  resuscitation  any  further  considera- 
tion. I  then  suggested  to  Mr.  Marsh  that  he  go  to  Mr.  Wanamaker's 
house  and  inform  him  that  he  (Marsh)  had  told  me  as  to  the  overissue 
and  come  back  and  report.  He  left  the  house.  I  immediately  went 
over  to  the  house  of  the  Attorney- General,  and,  not  finding  him,  I  went 
to  the  house  of  the  Solicitor-General,  Mr.  Taft,  and  informed  him  of 
the  whole  situation.  1  told  him  that  Mr.  Marsh  would  be  back  at  mv 
house,  and  If  he  desired  Mr.  Marsh  could  be  arrested  before  he  lef't 
ine  city.  Mr.  Taffc  came  to  the  conclusion  that,  inasmuch,  as  Mr 
Marsh  had  come  to  Washington  for  the  purpose  of  informing  me  of  this 
that  he  would  not  be  likely  to  try  to  escape,  and  therefore  he  would 
not  arrest  him.  I  went  ba<ik  to  my  house  and  I  found  Mr.  Marsh  there  I 

«?^nH  f ^y  iv?""  w^''^'^''  .*^'^^  '''^^  ^™^-  S^  simply  gave  me  to  under- 
siana  that  Mr.  Wanamaker  had  not  given  him  any  encouragement 
ine  conversation  closed  and  Mr.  Marsh  went  back  to  Philadelphia     I 

7Zl^  ^%  ^fHl""^^  ""^^^  immediately  after  he  left  the  house,  and 
telegraphed  to  Mr.  Drew  to  visit  the  Keystone  bank  the  next  morning 
and^awa^t  a  telegram  from  me.    That  telegram  was  sent  on  the  evening 


'■/ 


r^ 


■ 
m 


:,  J I 


Y 


138 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


139 


15  fi 


\\ 


[Telegram.] 

March  19,  1891, 

W.  P.  Drew, 

National  Bank  Examiner,  S9S9  Chestnut  St.: 

Visit  Keystone  bank  nine  3'clock  to-morrow  morning  and  await  telegram  from  me. 
•^  E.  S.  Lacky, 

Comptroller. 

The  next  morning  at  8  o'clock  I  went  to  the  telegraph  office  and 
telegraphed  Mr.  Drew  to  close  the  bank  ;  and  Mr.  Drew  replied  that  he 
had  done  so.  His  telegram,  however,  did  not  arrive  as  early  as  I  had 
hoped  and  I  telegraphed  him  the  second  time,  to  which  he  replied  as  fol- 
lows: "Your  telegram  received  and  answered.  The  bank  was  closed 
at  10  o'clock."  The  Mr.  Lynch  mentioned  in  the  letter  of  Mr.  Drew  is  an 
employ^  of  my  office  as  supervisor  of  receivers. 

[Telegram.] 

March  20, 1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

If  an  experienced  receiver  could  be  sent  at  once  it  would  be  of  great  immediate 

beuetit.     I  earnestly  suggest  Mr.  Lynch. 

W.  P.  Drew, 
National  Bank  Examiner. 


[Telegram.] 


March  20,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Your  telegram  was  received  at  ten  o'clock  and  promptly  answered.     Bank  was 

closed  at  ten  o'clock.  ^^^  ^  ^ 

W.  P.  Drew. 


[Telegram.] 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Ci  krexcy, 

Washington,  March  20,  1S91. 

W.  P.  Drew, 

National  Bank  Examiner: 

(Care  Keystone  Natitmal  Bank,  Philadelphia,  Pa.) 

Answer  my  telegram  of  this  morning  without  delay. 

E.  S.  Lacey, 

Comptroller. 


[Telegram.] 


March  20, 1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

Teleeram  of  to-day  received  at  10  o'clock,  and  orders  at  once  obeyed. 

^  W.  P.  Drew, 

National  Bank  Examiner. 


[Telegram.] 

Treasury  Department, 
Office  of  the  Comptroller  op  the  Currency, 

,,,    ^    T.  Washington,  March  20,  1891. 

W.  P.  Drew, 

National  Bank  Examiner: 

(Care  Keystone  National  Bank,  Philadelphia,  Pa.) 

You  will  close  number  twenty-two  hundred  and  ninety-one  immediately  and  take 
charge  of  its  assets.     Answer  quick. 

E.  S.  Lacey, 

Comptroller. 

Note.— The  charter  number  of  the  Keystone  National  Bank  is  2291. 
By  Mr.  Wike  : 

Q.  He  is  employed  in  your  office?— A.  Yes,  sir;  he  is  supervisor  of 
receivers.  He  instructs  new  receivers  and  assists  in  getting  bank 
people  out  of  trouble.  Mr.  Drew  knew  Mr.  Lyncli,  and  he  telegraphed 
that  Mr.  Lynch  might  go  over  and  assist  him  after  the  closing  of  the 
bank.  The  next  day  I  received  from  Mr.  Comegys  a  letter  marked 
"confidential/'  suggesting  a  receiver,  if  I  was  inclined  to  appoint  one. 

Q.  Were  you  "inclined"?— A.  I  saw  him  afterwards. 

By  Mr.  Speer Y : 

Q.  Did  you  send  Mr.  Lynch  over?— A.  Ko,  sir;  he  was  not  here,  but 
a  few  days  later  I  sent  Mr.  Stoddard  over,  who  was  in  charge  of  the 
correspondence  and  the  insolvent  bank  division  in  the  office. 

Q.  He  was  the  first  man  who  went  over? — A.  Y^es,  sir. 

Q.  How  soon  after  the  closing  of  the  bank  did  you  send  Stoddard 
over?— A.  On  the  next  day. 

Q.  You  had  sent  no  one  previous  to  tbat?— A.  No,  sir. 

Q.  Did  Mr.  Stoddard  take  possession ?— A.  No,  sir;  he  had  nothing 
to  do  except  to  advise  Mr.  Drew  as  to  the  legal  questions  in  relation  to 
the  business. 

Q.  Was  there  anyone  else  who  assisted  the  ordinary  examiner  or 
receiver  m  making  the  list  of  papers?— A.  Nobody  was  sent  to  the 
Keystone  National  Bank  except  Mr.  Stoddard,  and  he  was  with  Mr. 
Drew  about  eight  days  to  advise  him  as  to  the  legal  questions,  and  in 
regard  to  other  matters. 

Q.  Did  Mr.  Stoddard  make  any  report?— A.  He  wrote  me  two  or 
three  letters. 

At  this  point  the  committee  adjourned  until  Saturday,  April  30, 
J-O"^,  at  lUioO  a.  m. 


Committee  on  Banking  and  Cueeency, 

Aiyrll  30,  1892, 
The  committee  met  at  10 :30  a.  m.    Present,  the  Chairman  (Mr.  Bacon), 
and  Messrs    Gate,  Cox,  Dickerson,   Cobb,   Sperry,   Busey,  Walker 
Brosius,  and  Henderson.  7      r-      j,  j,  , 

The  Chairman.  At  the  conclusion  of  the  last  hearing  we  were 
reading  m  evidence  the  report  of  the  examiners,  which  stated  what  had 
become  of  the  original  banking  house  and  real  estate,  being  a  report 
Diade  prior  to  the  increase  of  the  capital  stock.  Can  you  give  us  copies 
of  the  hst  of  shareholders  of  the  bank  ?  ^      &  i- 

^,^??T^^^^^.^^V^,^^^^  y^^^  ^^P>^  ^f  ^^^  list  of  shareholders  on  the 
soiven  ^^  ^^  in  Jnly?  1889,  which  was  the  last  report  prior  to  the  in- 

Q.  Did  you  not  have  one  of  a  later  date  here  the  other  dav?— A 
JNo,  sir.  ^ 


4 


>"! 


.'? 


W'^ 


. .  * ' 


'I 

'1^ 


'■■i 


140 


INVESTIGATION   OF   NATIONAL   BANKS. 


2Sro.  of  bank,  2291. 


Examiner^s  report  of  the  condition  of  the  Keystone  National  Bank,  located  at  Philadel- 
phia, in  the  county  of  Philadelphia,  State  of  Pennsylvania,  at  9  o'clock  a.  m.  January 
7,  188^. 


John  \V.  Lucas,  President.  ] 


[G.  W.  Marsh,  Cashier. 


Ivesourcea.. 


8. 

9. 

10. 
11. 
V2. 


13. 
J4. 

W. 

16. 

17. 

18. 
1«>. 

*J0. 

21. 


22. 
23. 

24. 
25. 


Not  OH  and  bills  diftcouuted 

Overdrsil'ts 

U.  S.  bonds  tt»  secure  circulation 

U.  S.  bonds  to  secure  deposits. . . 

U.  S.  bonds  on  hand 

Other  stocks,  bond,  and  luort- 
gapes 

Due  from  app'd  reserve  agents, 
viz:  "Hanover  Nat.  Bank," 
N.Y 

Due  from  other  national  banks 
(37) 

Due  from  State  banks  and 
bankers  (13) 

Banking  house 

Other  real  estate , 

i*'ui*niture    and    fix- 
tures   $10,000 


Current  expenses... 
Taxes  paid 


3, 8«r>.  40 


Premiums  paid 

Exchange 

Checks  and  other  cash  items 

Exch's  for  C.  H.,includ'g  i;<dd 

ch'ks 

Bills  of  other  national  banks  — 

Bills  of  State  banks 

Fi'Sictional    currency    (inclnd'g 

nickels) , 

SjMw^ie,  viz : 

Silver  coin $14, 302. 30 

Gold  coin 4, 501.  50 

Gold  Treas'y  notes. 


Legal-tender  notes , 

U.  S.  cert's  of  dep.  for  legal  ten- 
ders  

5 p.  c.  red'n fun<l  wit  li Trea«.  U.  S. 
Other  funds  with  Treas.  U.  S. . . 

C.  H.  gold  certiticates 

U.  S-  silver  certificates 

Cash  short 


Total 


Dollars. 


711, 695. 08 
2,117.70 
200,  OOt' 


Liabilities. 


17, 739. 77 

21, 193. 24 

8,  249. 42 


8. 


Capital  stock  paid  in 

Surplus  fund 

Discount $4,  G38. 76 

Exchange 

Interest 1,317.56 

Premiums 

Profit  and  loss 305. 84 


Rent  from  S.  D.  boxes 
Circulation  received  .  .$180, 000 
On  hand  and  returned 


I    10. 
11. 


3, 865. 46 
10,884.29  i 
10,  15 

8,  937.  Go 

I 

60, 792.  .W 
1,088 


State-hank  circulation  outstand- 
ing   

Dividends  un]>aid 

Individual  deposits,  vi/.: 

Subject  to  clieck.$0()7,  KiO.  40 

Demand  cert  if  s . .      7,  724. 55 

Time  certificates. 

Certified  checks  . 

Cashier's  checks 


Dollars. 


200,000 
40,  000 


6,261.96 
15 


180,000 


2.61 


18,  953.  80 
26, 325         i 


12. 
13. 

14. 
15. 


16. 
17. 


United  States  deposits 

Deposits  of  U.  S.  disbursing 

oflicers 

Due  to  national  banks  (2) 

Due  to  State  banks  and  bank- 
ers (2) * 

Due  bills 

Notes  and  bills  rediscouuted  . . . 
Bills  payable 


674, 884. 95 


3,197.49 


1. 


M.08 


2_'.  :t79.  74 
2.'»,  iiOO 


9,000 

40,  000 

1,690 

16 


1,153,461.12 


Cash  over 


Total 1,153,461.12 


Records:  Complete;  bills  discoimted  are  proved  montbly;  are  correct;  all  beariug 
6  per  cent  interest. 

Other  books:  Very  well  kept;  2  iiidividiiul  ledgers  (8(X)  ae'ts)  balanced  monthly; 
no  differences. 

President:  Manager  of  bank;  a  successfiil  merchant,  firm  of  Lucas  &  Bros.,  whole- 
sale grocers;  a  capable  and  attentive  otticer;  owns  612  shares. 

Cashier:  Formerly  teller  in  3<l  National  Hank;  acts  as  paying  teller  in  this;  a  faith- 
ful and  careful  officer. 

Directors:  6  owning  3,148  shares  of  stock;  boanl  nu-ets  twice  each  week;  G.  B« 
Haines  has  1,(K)2  sliares  of  stock. 

Stockholders:  73;  all  have  certilicates  of  stock;  largest  sto(^khol«h'r,  Vice-President 
(formerly  President)  Wm.  Armstrong,  1,0.50  shares. 

Office:  Large  and  complete  banking  rooms,  with  safe  deposit  «lepartment,  in  build- 
ing corner  of  Chestnnt  and  Juniper  st.,  opposite  U.  S.  Mint;  rent  paid,  $(),(X)0, 

Safe:  Superior  safes,  good  vaults,  tinu?  clocks  and  watchmen. 

Dividend  and  nurplus  {section  5199  of  the  Revised  Statutes  of  the  U.  S.). 

No  dividend  declared  since  organization  as  a  national  bank. 

Date  of  last  divi4lend,         .  Amount,  $         .  Carried  to  surplus, 

(It  is  the  intention  of  the  management  to  make  no  dividend  for  two  years  at  least.) 


INVESTIGATION    OF    NATIONAL    BANKS.  141 

LOANS  AND  DISCOUNTS. 

On  paper,  with  two  or  more  individual  or  firm  names  (demand  loans, 

$253,5&4.25) : .'$876,448.48 

On  smgle  name  paper  (one  person  or  firm),  without  other  security 8  900 

On  mortgages  and  other  real-estate  security ' 

On  U.  S.  bonds,  payable  on  demand ] 

On  other  stocks,  bonds,  etc.,  payable  on  demand ]      ]4, 500 

All  other  loans  (time  loans  on  collaterals) ][       n' 846. 60 

Included  in  the  above  are —  ' 

Bad  debts  as  defined  in  section  5204  of  the  Revised  Statutes  of  the 

United  States,  none 

Other  suspended  and  overdue  paper 9  683. 06 

Liabilities  of  directors  (individual  and  firm)  as  payers  (3  brewers) '.       33,' 849!  25 
Loans  exceeding  the  limit  prescribed  by  section  5200  of  the  Revised 
Statutes,  U.  S.,  viz:  Please  see  ''Demand  loans,^'  next  page. 

GENERAL  REMARKS.    • 

"Overdrafts."  Of  these,  $1,578.91  are  old  ''debts  balances"  carried  on  ledger  in  ac. 
of  "petty  balances."  Against  this  amount  are  $1,436,77  old  "credit  balances" 
carried  in  same  ac.  It  is  the  intention  to  credit  the  latter  to  profit  and  loss,  and 
then  to  charge  the  former  to  that  account. 

"  Past-due  paper." 

Due  1879-80,  six  notes  in  suit,  good  eventually $2  164  57 

Due  1880,  two  notes  ( "  Chapman  ")  in  suit,  doubtful '  755*  99 

Due  July  21,  1881,  $1,750;  due  Aug.  21,  1881,  $2,000,  "Mackany,  .John- 
son, Turner  &  Co.," endorsed  "Edis  «fe  Mockridge,"  clothiers;  failed; 

good  for  i  on  settlement ;  balance  Will  be  charged  oft" 3  750 

Due  1881,  eight  notes,  recent,  protested,  and  good 3'  012. 50 

Q  fm'i  OR 

"Bills  Payable":  Note  of  president,  authorized  by  directors,  to  Girard         ' 
National  Bank,  with  $30,000  bills  discounted  as  security,  dated  "Dec. 
1,  1881,"  on  demand 25,000.00 

"  Sale  of  Banking-House  Property" :  'Acting  on  recommendation  of  the  Comptroller 
at  a  stockholders'  meeting  held  June  3, 1881,  authority  was  given  to  sell  the  bankino-- 
house  property  by  vote  of  3,115  shares  (unanimous),  for  not    less  than  $125,000 
Offers  were  afterwards  received,  John  Rcvenal  offering  $120,000  and  John  Taiiaus 
offering  $125,000.     August  9  sale  was  effected  for  $130,000,  to  Edwin  Irvin,  acting  as 
trustee  for  "John  C.  Lucas"  (pres't  of  the  bank),  "William  Armstrong"  (vice  pres't) 
and  G.  B.  Haines,  a  director.     The  mortgage  of  $60,000  was  paid  off,  and  for  the 
balance  note  on  demand  for  $70,000,  at  6  per  ct.  interest,  taken.     The  property  had 
been  previously  charged  down  by  the  management  from  $150,000  to  $130,000.     A  con- 
tract to  rent  to  bank  its  present  quarters  at  $6,000  per  annum  for  five  years  was 
made.    This  is  a  bona  fide  sale.    The  note  is  dated  Aug.  16,  1881,  and  is  by  "Samuel 
Lucas"  ("of  Lucas  &  Bro."),  with  demand  note  of  G.  B.  Haines  to  "John  C.  Lucas" 
lor  $70,000  as  collateral. 

"Demand  Loans":  Among  those  in  addition  to  the  note  above  referred  to  for 
$70,000,  "L.  U.  Maltby  &  Co."  has  paper  on  demand  in  amount  of  $76,870.50,  com- 
posed m  eleven  notes,  dated  from  Jan'y  19  to  Dec.  24,  1881,  as  follows:  $49,500  to 
order  ol  "J.  C.  Lucas,"  pres't  of  bank,  as  treasurer  of  "Sea  Girt  Land  and  Im- 
provement Co. ;"  $14,500  to  their  own  order;  $5,000  to  order  of  "Lucas  &,  Brother  " 
juid  $6,870.50  note  of  Lucas  &,  Brother,"  accepted  by  "L.  U.  Maltbv  &  Co  "  These 
notes  were  given  for  balance  due  on  sale  by  "The  Sea  Girt  Land  and  Improvement 
io.    to  "L.  U.  Maltby  &,  Co."  of  the  hotel  properties  at  Spring  Lake  (Monmouth 

11'/^^^^"^*,,^^^^'^^^  ^^^  **  ^®^  ^^^*'  ^-  J-  (''J^each  House"  property  valued  at 
$100,000),  all  secured  by  mortgage,  held  in  trust,  and  comprises  the  only  debt  on 
these  realties.  It  is  reported  that  the  amount  will  be  largely  reduced  bv  navments 
in  cash  during  the  next  six  months. 

The  rest  of  the  demand  loans,  except  $14,.500,  as  collaterals,  are  on  personal  secur- 
ity.    Interest  at  6  per  cent  fully  paid. 

The  city  treasurer  has  balance  of  $100,000  on  deposit. 

No  interest  is  paid  on  personal  dei308its. 

Revenue  stamps  on  all  checks. 


4 


i 


142  INVESTIGATION   OF   NATIONAL   BANKS. 

Condition  of  hank  as  to  rescn^e,  close  of  hualncss  Jan^y  JS,  1882. 

Legal-tender  notes  on  hand $41,  219. 00 

Gold  coin $3,439.50 

Silver  coin 17,513.45 

' 20  952.95 

C.  H.  gold  certificatea 75!o0o]o0 

137,171.95 

DepoHits 693,917.10 

C.  H.  exch'g's $29,881.51 

5  per  cent  red.  Td 9,000.00 

38,881.51 

632,  798. 61 

Due  from  reserve  agents : 31,109.57 

Other  banks 35,582.92 

*  W.  P.  Drew, 

Examiner, 

To  the  COMPTKOLLKR  OF  THE  CUURENCY, 

lyashington,  D.  C, 
Due  to  banks,  $13,140.20. 


Exhibit  No.  8— April  30,  1892. 

Copy  of  list  of  names  and  residences  of  shareholders  of  the  — 

on  the  first  Monday  of  July,  1889. 


National 


Bank 


Name. 


Kesidence. 


t, 
I. 


Arthnr,  R riiilada. 

Aguew,  E ' 

Bringhurst,  Mrs.  T Iiuliiina. 

Barr,  W.J I  IMiilada. 

Baines,  C.  J: 

Bastian,  H 

Bradley,  H.  H 

"         W    B  I         " 

Brintziiighoffer,  C !        " 

Beatty,  M.  A... " 

Burns,  B.  C i 

Brown,  J.  A.  S | 

"       (George..    i        '• 

Brenenian,  B.  F '  Lam-astiT. 

Brown,  Mrs.  K.  A |  I'liihuU 

Bmk,D 

Byrd,  Jiio i 

Butler,  Mrs.  Mary-  T 

Creth,  Caroline 

"      Jno.  E 

Canning,  L 

Cassidy,  J.  H 

Crump,  A.J I 

"       Joh  n 

Chapin,  Geo.  W 

Carncross,  John 

Chapin,  S.E 

Cattell,  W.  C 

Cooper,  Mrs.  D.  E 

Ciiimp,  Geo.  R 

Commonwealth  Title  Co 

Cox,  W.  P 

Chambers,  Mrs.  J 

Davis,  M.A 

X^cvl  1 IH*  \Jf •  J-* •••••••••••••••••■  •••■■•■••>•>*••>«•.>«•-■-  -  >*■ 

Ditnian,  J.G 

Dunham,  Jno.  Co 

Downs.  M.  D 

"       Emma 

Excel .  Div.  Sons  of  Temp 


No.  of 

shares. 


I 


ii 

<< 


31 
50 
50 
25 
31 
50 
6 
1 
6 
10 
12 
10 
15 
20 
125 
25 
20 
10 
10 
10 
10 

15 
22 
11 
10 

9 
12 
12 
30 

2 
100 
13 
15 
10 
20 
50 
10 
70 
10 
20 

5 
13 
10 


INVESTIGATION   OF   NATIONAL   BANKS.  143 

Copy  of  list  of  names  and  residences  of  shareholders,  c<c.— Continued. 


Name. 


Residence. 


Philada , 


<( 
<i 

ct 


it 
(( 
it 
tl 
i( 
(( 


(( 

(i 


West  Chester. 
Philada 


Munry  .. 
I'hilada , 


Elliott,  A.  G.  Co, 

R.  M 

Fields,  Geo.  F 

Freeman.  H.  (J- 

Fricka,  A.  H 

Gans,  E.  M 

Gol)ell,  G.T.,  jr ' 

Goforth,  M.  A 1'!"."."""'.!.'.*!.'.*."!! 

Glass,  M.  Ida '.'..'.'.'.". 

Graham,  S.  C 

Green,  H.  W 

Garrett,  Walter '.*-".*.".'-"!"*.'!.'"!!! 

(iregson,  Jos '.'.'.'.'... 

Groves,  Wm 

Goble,  B 

Gibbs,  A ^i!"!l!J!]!Ji!!J!!!! 

Harman,  J.  C 

Hopper,  W.  G ".".!...'...' 

Heraty,  E.J 

Haines,  G.  B 

"       F.D 

Holbrook,  R.  M '.'.!.'.'!]"."*.'"'" 

Howard,  J.  M 

Hibbard,  S.  Y !.'."!!!'."..'."".'!'.!.*.! 

Hopkins,  E '.'.'..'.'.'..'.'.'.'." 

Holbrook,  Jno.  O !"!!!!!"!!!!!! 

Hoopes,  D.  J !!!!!.!!!..!!.. 

Hornickel,  H.  A '.  ""^. .V.'.'.'. .V.V. 

Johnson,  Henry !!.!..!".".'.!!'" 

Jackson,  J.  T - ."  i  1  !..!.*.!.'.'...*. ." 

Kahlmus,  Jno 

AnnaL '. 

Keen,  E.J 

"    Ex '."".'.'""/.'. 

Kerst,  Henry 

Kerlin,  I.  N' 

King,  Lillie  W ..', 

^n^^'^^i •-••i  Westchester 

Lowry,A.A !  PhUada 

7^^?,Vn    Westchester 

Long,  B.C '  Philada 

Long,  W.  V i-niiaaa 

Lex,  W.  E 

Leech,  W.  H„jr ,,', 

Logan,  Mary  P "  " 

Lucas,  SamI 

Lukens,  H.  T '.'.'.'.'.'.'.'. . 

Lucas,  J.  C.,  estate { 

McFadden,  Chas '  j 

McBumey,  D 

E.  c ".'.'!!.'.'.■." 

McCune,  Alex 

McArthur,  D ill.".'!!!.'!.".'."" 

McBride  Bros !!!!!!!!!!"" 

McCausland,  M 

McClees,  J.  E .*. 

McGillian,  W 

McMullin,  W 

Mellick,  Mrs.  E.  D 

Meiiick,  J.  M !!!!!!!!!!!!!! 

Morgan,  J 

Marsh,  G.w !!!.!!!!!!!!!!! 

Mas.sey,  Thos !!!!!!"*' " 

M  n  rp  h  ey  Sons !!!!!!!!!!!!!!! 

Meloney,G.R 

Matthews.C.T 

Mackie,  B.  S 

Miller,  C.H ' 

Miller,J 

Miller,  C.H !!!!!!!!!!!!!! 

Moore,  A.  M !!!!!!!!!!! 

Myers,  Jacob !!!!! 

^''"^•s-^jr !!!!!!!!!!!!!!!!!!!!! 

Noce  &  Swarthley 

Nell,L : 

Norton,  CD  ...  

Nichois,D.p;s!!!  !!!!! '     ■' 

Nirdiinger.s.F !!!!!!."!!!!!!!!!! '!"■ 

Nathans,  M.L 

Omenfietter,S 

Otto.Jno.O 


Pomeroy,  Pa. 
Philada 


It 
i( 
ti 


tt 
it 


It 
it 
It 
tt 
it 
it 
ii 


it 
it 


it 
it 


No.  of 
shares. 


it 
it 


59 
3 
90 
12 
15 
3 
4 
1 
11 
15 
40 
50 
25 
50 
38 
10 
40 
2 
39 
991 
14 
12 
25 
36 
5 
15 
25 
5 
125 
50 
37 
44 
10 
2 
30 
12 
3 
25 
1 
2 
19 
47 
2 
20 
100 

ao 

2 

2,669 

675 

20 

7 

5 

7 

5 
12 
15 

2- 

7 

5 
20 

i: 

20 

100 

3 

25 

1 

100 

o 

62 
30 
50 
19 
15 

2 

25 

250 

5U 

5 
12 
20 


H 


144  INVESTIGATION   OF    NATIONAL    BANKS. 

Copy  of  list  of  names  and  residences  of  shareholders,  cte.— Continued. 


{: 


l'''i 
tlf 


If 


Kame. 


Over.D.  A 

Payne,  Geo.  F.  &  Co 

Penioae,  E 

Perot,  Ja«.F 

Parker,  H.J 

Portnondo,  J.  M.  Co 

Pepper,  C.C 

"      J.TV 

Penuell.W.H 

Paul,H.S 

A eters,  o.  Jv.  *.••■«•■*•••••••-•••. 

Regan,  N.  K 

Reed,  Allen  H 

*'     Jacob's  Sons 

Rees,  P.  A 

Richel,A.C 

Robinson,  John 

Rodgers,  R 

Sni  i th ,  H.  A 

Sautter,  C 

Ste<^l,Tlieo 

Smith,  Walter  B 

Shellenber£er,  W.  A 

E.A 

"  C.U 

Shirley,  Geo.  W 

Sower,  J.  R 

Scarborough,  W.  A 

Stokes.  R.  Eat 

Stang,  Peter 

"     Geo 

Sharp,  Amelia 

Trustees,  Rebecca  Div.  Sons  of  T 
Torr.C.C 

"    W.S 

Tobiasson,  L , 

Van  Beil,  Henry 

Valdez,  Jno 

"Weaver,  D , 

Warner,  W.  R.  &  Co 

••       Mrg.S.H 

Wheeler,  M , 

Webb.E.D , 

Whilldin  Sons 

Ware,  Hetty 

Yard,H.H 


Residence. 

No.  of 
shares. 

Philada 

50 

20 

6 

ti 

i( 

It 

6 

1 

4 

It 

«. 

<i 

10 

II 

12 

II 

125 
13 

11 

Ik 

5 

11 

11 

Ik 

25 

100 

1 

7 
10 

5 
6 

37 
5 

10 

2 
12 

2U4 

12 
8 

12 

50 
50 

100 
7 
2 

775 

20 

300 

f 

18 

125 
6 

15 

as 

40 

10 
235 

State  of  Penna.,  County  of  Philada.,  8$: 

G.  W.  Marsh,  cashier  of  the  Keystone  National  Bank,  beinp;  dulv  sworn,  deposes  and  says  that  the 
foregoing  is  a  lull  and  correct  list  of  the  shareholders  of  said  bank,  with  the  residence  ot  each,  and 
the  number  of  shares  of  tlie  stock  of  said  bank  hehl  by  each  of  them,  on  the  first  Monday  of  July,  1889, 
and  that  the  same  is  a  true  copy  of  the  list  of  shareholders  on  file  in  said  bank  on  that  day, 

,  ,       .^  .      ^  .    .   ,  ,  .  G.  W.  Mabsh,  Cashier. 

,    ^ubsc^bed  and  sworn  to  before  me  this  24th  day  of  September,  1889. 

[Official  seal  of  officer.]  

Q.  You  stated  that  Mr.  Stoddard,  of  your  office,  went  to  the  Keystone 
Bank  after  the  closing  of  it  and  remained  there  some  days. — A.  Yes, 
sir:  at  the  requests  of  Mr.  Drew  Mr.  Stoddard  was  sent  there. 

Q.  He  returned  to  your  office? — A.  He  did. 

Q.  And  has  been  there  since? — A.  Yes,  sir. 

Q.  Did  he  make  any  report  to  you  in  writing? — A.  He  wrote  me  two 
or  three  letters  during  the  time  he  was  there.  They  are  in  the  corre- 
spondence and  we  will  come  to  them  in  the  regular  order. 

Q.  You  had  read  letters  which  suggested  the  name  of  a  receiver  or 
suggested  his  willingness  to  suggest  the  name  of  a  receiver  by  the 
l>resident  of  somebank  of  Philadelphia  ?— A.  Yes,  sir ;  from  Mr.  Comegys. 
I  will  proceed  to  read  the  next  communication,  which  was  a  telegram 
on  March  20. 

(Mr.  Lacey  read  from  copies  of  letters  received  and  sent,  which  will 


INVESTIGATION    OF    NATIONAL    BANKS.  145 

be  furnished  to  the  committee.    During  the  reading,  the  following  pro- 
ceedings took  place:) 

Philadelphia,  March  19, 1891. 
Sir:  At  the  close  of  business  to-day  No.  2291  "settled"  as  follows: 
5«8erve ^ $22,000 

g"""^^ 8  400 

t.x('hniiju:e8 42  300 

Mems.  aud  other  funds '.'.'.'...'..'.'.'.        13  400 

86,100 

Deposits,  city  treasurer 600~000 

Other  depositors lill!!      589*  000 

1, 189,  000 

Mr.  Marsh  informed  me  this  morning  that  he  intended  to  go  to  Washington  to-dav 
to  see  you  with  reference  to  your  letter  to  me  of  the  17th  inst. 

I  had  an  interview  with  the  chairman  of  the  clearing  house  committee,  and  he 
states  that  they  all  regard  the  condition  of  the  bank  as  critical,  and  while  they  ex- 
press themselves  as  desirous  of  all  in  their  power  to  prevent  the  suspension  of  the 
bank,  and  hope  that  it  may  be  able  to  "pull  through,"  they  nev^ertheless  feel  that 
unless  fresh  capital  is  put  in  without  much  further  delay  the  collapse  must  come. 

Nothing  has  yet  been  done  towards  realizing  from  the  property  at  the  seashore 
and  the  reported  offer  of  $350,000  for  a  portion  of  it  has  not  yet  taken  shape.  ' 

I  am  at  the  bank  daily,  and  will  continue  to  report  to  you  'its  condition.     There  is 
no  excitement  apparent,  but  a  steady  drain  is  slowly  going  on. 
Verj'  respectfully, 

W.  P.  Drew, 

TT       11    c   T  ^^*'  ^ank  Examiner. 

Hon.  h.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


[Confidential.] 

At  the  Philadelphia  National  Bank, 

Philadelphia,  Math.  19,  1891. 
Dear  Sir  :  Should  it  unfortunately  become  necessary  for  you  to  appoint  a  receiver 
for  any  national  bank  in  this  city,  and  should  you  belnclined  to  ask  whether  I  can 
suggest  the  name  of  aisuitable  person  for  such  a  service,  I  venture  to  say  that  I  <io 
know  of  such  a  person,  exceptionally  well  qualified  in  all  respects.  And  he  is  not  in 
want  of  employment,  nor  is  he  connected  with  any  bank  or  trust  co.,  but  he  is  in 
active  business. 

I  am,  very  respectfully, 

XT  , ,     o     T  ^'  ^-  COMEGYS. 

Hon.  L.  S.  Lacey, 

Comptroller  of  the  Currency. 


[Telegram.] 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  March  20,  1891. 
W.  P.  Drew, 

Examiner  in  charge  Keystone  National  Bank,  Philadelphia,  Pa.: 
Telegram  received.  Permit  no  officer  or  employ 6  to  tamper  with  any  assets  or  do 
any  act  not  directly  under  your  supervision.  Change  vault  coml)inati(»'n  so  that  vour 
presence  will  be  required  to  open.  Protect  maturing  paper  by  protest,  aiul  collec- 
tions for  other  banks  so  that  trust  will  not  be  liable.  Pay  out  no  numev,  but  receive 
payments  maturing  paper,  and  keep  separate.  Depositors'  checks  nor  reititieates 
of  dejiosit  must  be  taken  in  payment  of  any  indebtedness,  nor  aiiv  assionnient  or 
transfer  of  funds  recognized.  Place  yourself  in  communieation  with  district  attor- 
ney and  report  any  violation  of  law  immediately  upon  discovery;  also  consult  him 
m  other  matters  where  legal  advice  is  necessary.  No  person  connected  with  the 
bank  can  l>e  permitted  to  do  anything  without  your  assent.    You  may  dispose  with 

3792 10 


1 


HI 


;i! 


I } 


"  * 


ik; 


INVESTIGATION    OF   NATIONAL    BANKS. 


wervires  of  any  on*:,  usiii^  best  Judfjint'iit   nnd  taking  steps  to  preolutle  the  rsi-'Jipt' 
of  any  guilty' person.     Make  uo  setttlements  whatever,  but  await  further  iuxtnu- 

tious. 

E.  S.  Lacey, 

Comptroller. 


[Telegram.] 

TllEASURY  DKPAKTMKNT, 

Office  of  thk  CoMrrROLLER  ok  the  Ci  rrkncy, 

Washington,  March  JiO,  1891. 

\V.  P.  Drew, 

Kxumrner  in  rharf/e  Keffsione  National  Bank,  Philadelphia,  Pa.: 

Charles  J.  fcjtoddard  of  this  office  will  meet  you  to-morrow  morning  with  authority 
to  assist. 

E.  S.  Lacey, 

Comptroller. 


Treasitry  Departmen  r, 
Office  of  Comitroli.er  ok  the  CrRKEs<  y, 

Washington,  D.  C,  March  20,  1891. 

Sir:  In  view  of  your  telegram  and  the  apparent  Tiecessities,  Mr.  Charles  J.  Stod- 
dard, of  tbis  office,  is  hereby  auth«»rized  to  render  you  sueh  assistance  as  maybe  in 
his  ])ower  witb  respect  to  the  affairs  of  the  bank  temporarily,  or  until  other  arrange- 
ments may  bo  found  expedient. 

E.  S.  Lacey, 

Comptroller. 
Mr.  Wm.  p.  Drew, 

National  Bank  Examiner, 

In  charge  Jieystone  National  Bank,  Philadelphia,  Pa. 


Philadelphia,  March  20,  1891. 

Sir:  Your  telegram  of  last  evening  was  received  by  me  at  10  o'clock  p.  m.,  and 
this  morning  I  Avas  at  No.  2201  at  0  o'clock,  as  directed.  At  9.50  your  telegram  of 
this  morning  was  receive<l  by  me  at  the  bank,  and  at  10  o'clock  I  had  taken  possession 
of  the  bank,  as  dire<!ted,  unci  had  custody  of  all  oi  the  ]>ank's  assets  and  had  closed 
the  doors.  In  order  to  admit  those  having  business  with  "  The  Central  Trust  Co.," 
Avhich  occupies  a  portion  of  the  main  room,  police  were  stationed  outside  the  doors 
for  that  imrpose,  and  to  prevent  entrance  of  others.  I  posted  at  the  same  time  a 
notii^e  that  the  bank  was  closed  by  the  order  of  the  Comptroller  on  the  outer  door 
of  the  bank.  There  was  a  throng  of  people,  many  of  them  dejjositors,  in  front  of 
IiIh'  bank,  which  gradually  diminished  in  numbers  until,  at  Ifjiee  o'clock,  there  were 
but  few  remaining. 

The  directors  were  present  at  the  time  of  receipt  of  your  order  closing  the  bank, 
it  being  the  regular  day  for  their  meeting.  Much  disappointment  was  ex]uessedby 
them,  and  by  some  other  stockholders,  at  this  sudden  action;  but  as  time  went  on, 
and  the  wisdom  of  the  step  was  discussed,  a  feeling  that  it  was,  after  all,  best  fVu- 
all  concerned,  became  generally  prevalent  among  them,  and  measures  for  resusci- 
tating the  bank  were  consiilered.  I  remained  in  tlie  bank  until  four  o'clock,  and 
will  hold  personal  possession  until  otherwise  ordered. 

I  immediately,  on  closing  the  bank,  telegraphed  you  to  that  effect,  and  sent  a  8e<;ond 
telegram  soon  after.  I  also  telegraphed  in  answer  to  your  second  telegram,  repeat- 
ing the  substance  of  the  first  one. 

My  principal  object  in  suggesting  in  my  telegram  that  Mr.  Lynch  be  detailed  to 
the  bank  was  because  he  has  had  so  much  experience  in  such  cases  that  I  thought 
he  could  render  the  bank  more  service  than  perhaps  I  might. 

Still,  as  there  does  not  appear  to  be  any  promise  of  long  excitement  on  the  part  of 
the  depositors,  and  as  I  am  familiar  with  the  condition  of  the  books  and  accounts  of 
the  bank,  I  may  in  this  respect  make  up  to  some  extent  for  my  lack  of  ex])erience  in 
the  matter.  I  shall  endeavor  to  resuscitate  the  bank,  and  meantime  will  faithfully 
obey  your  instructions. 

I  will  write  to  you  daily  in  reference  to  the  situation. 
Very  respectfully, 


Hon.  E.  S.  liACEY, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


W.  P.  Drew. 
Nat.  Bank  Examiner. 


Mem. 
8.  x>-  ni. 


-Sinct  writing  the  above  I  have  received  your  two  telegrams  of  this  p.  m. 

W.  P.  Drew. 


INVESTIGATION  OF   NATIONAL   BANKS. 


147 


[Telegram.] 

E.S.LACKT,  March  21, 1891. 

Comptroller  of  Currency,  Washington,  D.  C: 
Agreeably  disappointed.     Everything  quiet.     Shall  return  to  see  you  to-morrow. 

C.  J.  Stoddard. 

Philadelphia,  March  21,  1891. 
Sir  :  I  thank  you  very  much  for  sending  Mr.  Stoddard  to  me.    I  hope  you  will  let 
him  return  on  Monday  for  a  few  days  at  least. 
Have  rec'd  your  telegram  and  will  call  as  directed. 

A  proposition  from  very  strong  parties  has  been  made  to  take  the  bank.    I  expect 
that  It  will  result  favorably.     Meanwhile  I  wiU  endeavor  to  carry  out  your  instruc- 
tions in  all  particulars. 
Very  truly,  yours, 

W.  P.  Dbbw, 
Hon.  E.  S.  Lacby,  ^^'-  ^^^^^  Examiner, 

Comptroller  of  Currency y  Washington,  D.  C. 


[Telegram— Confidential.  1 

Treasury  Depajitment, 
Office  of  the  Comptroller  of  the  Currency, 
W  P  Drew  Washington,  March  21,  1891. 

Examiner  in  charge  of  Keystone  National  Bank,  Philadelphia,  Pa.: 
Call  at  southeast  corner  of  Eighteenth  and  Spruce  streets  at  eight  o'clock  this  even- 
ing and  give  Mr.  W  close  estimate  of  assets  and  liabilities.     Encourage  all  efforts  to 
reopen  the  bank  and  give  out  no  information  except  such  as  will  conduce  to  that  end 
and  then  with  great  care. 

E.  S.  Lacey, 

Comptroller. 

[Personal.] 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  21,  'iSOl. 
Mr.  B.  B.  CoMEGYS, 

Care  Philadelphia  National  Bank,  Philadelphia,  Pa.: 

My  Dear  Sir:  I  am  in  receipt  of  your  valued  favor  of  the  19th  instant  and  note 
Its  contents. 

As  you  are  aware  I  was  compelled  to  order  the  closing  of  the  Keystone  National 
m^L^u^ef aTe'L\r  To'rfopen  T""''  ^'"^ ''  "P^^^"*  ^  ^^^^^^^^  *^«^^^"^^  ^^^^  P^^^* 
V^r^^'^tt^t^X^lt:^^  Buggestions  you  may  be  able  to  make  in  reference  to  a 

Of  course  I  expect  there  will  be  many  candidates  and  much  to  be  considered  in  se- 
lectmg  a  person  to  properly  administer  the  trust,  but  I  can  assure  you  that  any  suff- 
Mdered  ^"""^  ™*^  ""^^^      ^        ^'^^  ^®  ""^^^  thankfully  received  aid  carefully  coi- 
Very  respectfully, 

E.  S.  Lacey. 

iqS'.^a^  ^t  y®^®£^^<i  ^  as  "Mr.  W."  in  that  telegram  of  March  21, 
loyl'— A.  John  Wanamaker.  ' 

.3'^^^^^^^"^  P^^?^®  l*^*^  ^^^^  ^^^  ^  *^®  sending  of  that  dispatch 
aiid  those  instructions  ?— A.  The  bank  closed  on  the  20th.  On  the  21st 
^^'  Z^:.  r*  ^Nettleton,  acting  Secretary,  said  that  Mr.  Wanamaker 
wanted  to  consult  me  about  the  Keystone  Bank.    In  the  presence  of 


m 


148 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OF   NATIONAL   BANKS. 


149 


! 


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1*5 

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jii  ••; 


Mr.  Kettletoii  I  bad  a  conversation  with  Mr.  Wanamaker  about  the 

Keystone  Bank.  „«,,,,  ..x     i.-      4.    4r\  ^ 

6   In  Washington?— A.  Yes,  sir.   He  first  called  my  attention  to  the 

overissued  stock  and  stated  the  conditions  under  which  the  stock  came 

into  his  possession.  ^    ,    ^ ,         •  i  xi    ^ 

Q  State  what  he  said.— A.  The  substance  of  what  he  said  was  that 
he  had  been  interested,  witli  Mr.  Lucas,  in  some  operations  connected 
with  the  Keadinj?  Railroad:  that  Mr.  Lucas  had  not  been  able  to  tur- 
nish  all  the  money,  and  that  he  had  agreed  to  give  him  (Wanamaker) 
certain  shares  in  the  Keystone  National  Bank,  which  Mr.  Wanamaker 
was  to  use  as  collateral  for  the  purpose  of  borrowing  money  to  make 
up  what  Mr.  Lucas  lacked.  He  said  that  he  had  so  pledged  the  stock 
and  that  during  that  time  the  bank  had  become  in  bad  credit.  He  hart 
naid  up  the  loans  and  had  the  stock  in  his  possession ;  that  during  the 
time  iinmediately  preceding  the  failure  Mr.  Marsh  had  been  negotiating 
for  a  surrender  of  that  stock  by  paying  some  money  and  by  transter  of 

certain  property.  . ,       ,  .,  x    x        r     ^.a 

Q  By  whom  was  the  money  to  be  paid  and  the  property  transferred 
as  proposed?— A.  My  recollection  is  that  it  was  a  joint  matter  on  the 
part  of  Mr.  Marsh  and  Mrs.  Lucas.  ,      *     xt       • 

Q.  Did  it  involve  any  payment  by  the  bank?— A.  No,  sir. 

By  Mr.  Walker  : 
Q    That  they  were  to  pay  the  money  and  that  he  was  to  surrender  the 
stock  !— A.  The  idea  was  that  before  he  agreed  to  surrender  the  stock 
they  had  agreed  to  pay  him  and  transfer  to  him  certain  property,  which 

was  to  be  a  full  liquidation.  ^  .    ,     x         i  + 

Q.  Was  it  stated  what  property  was  proposed  to  be  turned  over  to 
MrT  Wanamaker  ?— A.  My  recollection  is  that  it  was  certain  dwelhng 

houses  in  Philadelphia.  ^  x    xr.  x 

Q.  Belonging  to  Lucas?— A.  1  am  not  clear  as  to  that. 
Q  Was  anything  said  at  that  time  by  Mr.  Wanamaker  as  to  what 
had  become  of  the  Beading  stock  which  had  been  acquired  in  the  course 
of  this  deal!— A.  I  understood  him  to  say  the  operation  had  been  a  los- 
ing one,  and  that  Mr.  Lucas  not  only  owed  him  the  money  borrowed  tor 
Lucas,  but  he  owed  him  a  certain  proportion  of  the  loss. 

Q  Not  covered  by  this  stmrk!— A.  I  would  not  say  as  to  that.  I  do 
not  know  whether  he  meant  that  it  was  covered  by  the  stock  or  not. 

By  the  Chairman  : 
Q    As  you  understood  the  explanation  made  by  Mr.  Wanamaker, 
tho  loss  liiMm  the  Beading  stock  not  only  aggregated  the  amount  of 
the  loans  made  by  him  upon  the  sto<-k  of  the  Keystone  National  Bank, 
but  a  sum  in  addition  to  that?— A.  Yes,  sir. 

By  Mr.  Dickerson  : 
Q    How  much  of  this  overissue  was  there  that  he  spoke  about  at 
that  time?— A.  There  were  about  2,500  shares  of  $50  ea<jh,  aggregating 

about  $125,000.  ^,  x     x-  n  •       ^       i^ 

Q.  Was  it  all  overissue?— A.  It  was  substantially  overissue,  it 
consisted,  so  far  as  my  information  goes,  of  shares  of  stock  which  were 
surrendered  for  transfer  to  other  parties.  The  old  certificates  surren- 
dered were  not  canceled,  but  were  held,  indorsed  in  blank,  by  Lucas 

and  used  for  his  own  purposes.  .      .     .    xt      •       mu  x       „ 

Q.  Had  that  been  developed  at  that  time?— A.  No,  sir.    That  was 

oneofthereasonswhv  Mr.  Wanamaker  wanted  to  consult  me  as  to 

whether  it  was  an  overissue.    He  had  serious  doubts  of  Marsh's  state- 


ments being  correct,  and  he  was  inclined  to  believe,  and  said  he  did 
believe,  it  was  genuine  stock,  notwithstanding  the  explanations  made  by 
Marsh. 

By  Mr.  Walker: 

Q.  It  had  not  yet  developed  as  a  certainty  whether  it  was  or  not  an 
overissue  of  stock? — A.  It  was  simply  the  assertion  of  Mr.  Marsh. 

Q.  There  had  been  no  other  evidence? — A.  Not  so  far  as  I  know  at 
that  time  in  regard  to  it.  After  saying  to  Mr.  Wanamaker  that  I  knew 
nothing  as  to  whether  it  was  an  overissue  or  not,  except  what  Marsh 
had  told  me,  I  tried  to  interest  him  to  assist  in  resuscitating  and  re- 
opening the  bank.  I  represented  to  him  the  condition  of  affairs  in 
I*hila<lelphia,  the  location  of  the  bank,  the  business  it  had,  and  the 
value  of  its  good  will,  trying  to  induce  him  to  join  with  tlie  otiiers  that 
Mr.  Drew  had  spoken  of  as  being  interested  in  the  affairs  of  the  bank 
in  the  direction  of  furnishing  new  funds  to  reopen  the  bank.  He  said 
if  I  would  telegraph  Mr.  Drew  to  meet  him  thatnightthat  he  would  look 
into  th(^  matter  and  see  if  he  could  do  anything  toward  a  resuscitation 
of  tlie  bank.     Tliis  was  why  I  sent  this  cx)mmunication  to  Mr.  l>rew. 

Q.  Where  was  that  place  at  which  they  were  to  meet? — A.  It  was 
the  residence  of  Mr.  Wanamaker's  son  or  his  own,  I  forget  which — 
one  or  the  other. 

Q.  Have  you  stated  fully  the  substance  of  the  conversation  between 
yourself  and  Mr.  Wanamaker? — A.  I  have  stated  all  that  I  remember 
of  the  (conversation.  I  will  be  glad  to  give  any  further  light  in  regard 
to  it  if  the  members  of  the  committee  desire  it. 

By  Mr.  Dickerson  : 

Q.  How  long  did  Mr.  Wanamaker  retain  this  stock  after  that? — 
A.  That  will  be  developed  in  the  correspondence.  I  have  forgotten 
the  j)articulars.  1  will  read  the  next  reply  which  Mr.  Drew  made. 
Mr.  Drew  wrote  me  March  22.  (After  reading  the  letter  of  March  22, 
1891,  from  Mr.  Drew:) 

Philadelphia,  March  2Snd,  1891. 

SiK :  In  accordance  with  yonr  instructions  by  telegram  yesterday,  I  called  upon 
tlu^  gentleman  named. 

He  was  evidently  not  aware  of  the  purpose  of  my  visit  until  I  had  explained  it 
to  him,  but  was  no  less  glad  to  see  me. 

I  laid  before  him  verbally  a  statement  of  the  condition  of  the  bank  as  I  under- 
stand it,  and  after  a  free  conversation  upon  the  points  involved,  I  left  with  the  con- 
viction that  he  did  not  wish  to  assume  ownership  or  control  of  it. 

Scmio  other  matters  were  incidentally  adverted  to,  affecting  the  conduct  of  the 
bank's  officials.     His  opinion  evidently  is  that  the  bank  is  worth  but  little,  if  any 
more,  than  the  ''good  will,"  and  that,  at  the  best,  there  is,  as  he  said,  ''  No  money 
in  the  banking  business." 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C» 


[O.  W.  Marsh,  president.    John  Hayes,  cashier.    Chas.  Lawrence,  asst.  cashier.] 

Keystone  National  Bank, 
1326  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint, 

Philadelphia,  March  22,  1891. 

Sir:  I  have  the  honor  to  report  that,  in  obedience  to  your  instructions,  I  closed 
this  bank  at  five  minutes  after  10  o'clock  on  the  20th  inst.  The  few  deposits  iilready 
made  for  that  day  were  carefully  set  aside  as  received,  to  be  returned  to  the  respec- 
tive depositors. 


150 


INVESTIGATION    OF    NATIONAL    BANKS. 


|4  .IJ"«i;H, 


if 


1  at  once  took  charge  of  the  bank,  taking  all  the  asaets  of  every  kind  into  my 
possession,  and.  tliey  were  immediately  placed  in  the  vault  under  my  personal  and 
sec: u re  custody. 

As  the  Central  Trust  t'o.  has  its  offices  in  the  same  room,  police  officers  were 
stationed  at  the  doors  of  the  bank,  and  no  persons  wcbb  admitted  except  those  who 
had  business  with  that  ctmipany,  or  whom  it  was  necessary  that  I  should  see  in 
connection  with  the  luisiness  of  the  bank. 

There  was  no  turbulency  or  excitement  outside  beyond  what  might  naturally  be 
expected  in  such  a  case,  and  the  following  day,  yesterday,  the  doors  were  ojjened 
as  usual,  with  the  precaution  of  posting  an  officer  of  police  inside  to  prevent  any 
<listurbance,  wliich  did  not  occur. 

The  books  an<l  accounts  of  the  banks  were  in  excellent  shape  when  the  bank  closed, 
a  result  of  having  been  in  charge  for  some  weeks  of  my  principal  assistant,  Mr.  H.  C. 
Jones,  who  will  continue  with  me  during  my  possession  of  the  bank. 

1  liave  met  several  of  the  depositors,  and  there  does,  not  appear  to  be  any  great 
apprehension  on  the  part  of  any,  and  some  have  voluntarily  expressed  to  me  a  will- 
ingness to  apply  the  amount  due  to  them  towards  the  stock  of  the  bank  if  it  can  be 
reliabilitated  or  placed  in  entirely  new  hands. 

On  tlie  day  of  the  closing  I  was  waited  on  by  a  well-known  gentleman  of  the  best 
financial  standing,  representing  others,  all  wealthy,  and  some  very  wealthy,  with  a 
propositi(m  to  take  the  bank  out  of  its  difficulties',  either  by  purchasing  the  entire 
stock  of  the  bank,  or  a  controlling  interest,  and  then  putting  in  sufficient  funds  to 
pay  all  demands,  or  by  creating  an  entirely  new  bank  in  the  same  quarters,  and 
with  the  same  lease  for  ten  years,  and  liquidating  this  bank,  by  paying  all  depos- 
itors and  returning  to  its  stockholders  whatever  should  be  realized  from  the  remain- 
ing assets.  The  latter  course  seemed  to  this  gentleman  preferable.  Whenever  either 
proposition,  or  any  other  one  in  this  direction,  shall  be  definitely  made,  I  will 
promptly  inform  you  thereof. 

The  feeling  here,  almost  universally,  is  strongly  in  favor  either  of  resuscitating 
this  bank,  or  of  caeating  a  new  one  to  ensure  the  *'goed  will"  which  is  regarded 
generally  as  A^aluablc.  The  newspapers  while,  as  is  natural,  making  mistakes  as  to 
facts  and  details  in  regard  to  causes  and  condition,  are  as  a  rule,  very  favorably  dis- 
posed to  the  bank  in  their  reports  and  all,  without  excei)tion,  express  approval  of 
the  Comptroller's  course  in  closing  the  bank  as  he  did. 

I  have  lately  heard  of  a  certain  number  of  shares  of  the  stock  of  this  bank,  that 
should  have  been  canceled  for  new  stock  issued,  having  ay>peared  some  time  ago  as 
collateral  for  a  loan  from  bankers  here,  which  loan  has  been  paid,  and  I  learn  that 
these  certificates  are  in  ]>rivate  hands  .without  liability  against  them.  Examination 
of  the  stock  books  of  the  bank,  and  a  very  thorough  one  was  made  not  long  ago, 
has  thus  far  failed  to  show  the  existence  of  any  certificates  in  excess.  I  shall,  with 
Mr.  Stoildard's  help,  immediately  enter  upon  another  examination,  and  will  report 
result.  Any  such  certiticates  as  those  refeiTed  to  are  no  doubt  the  property  of  the 
bank,  and  could  be  obtained  on  legal  demand  from  any  holder.  If  the  report  is  true, 
I  cannot  conceive  how  such  certiKcates  exist  unless  the  management  of  the  bank  at 
the  time  deliberately  failed  to  cancel  thein,  and  put  them  out  fraudulently,  for  some 
private  speculative  purposes. 

1  thank  you  for  allowing  Mr.  Stoddard  to  assist  me  for  a  short  time.  His  experi- 
ence is  very  valuable  to  me.  When  things  become  settled  I  shall  need  no  assistance 
until  either  the  bank  is  rehabilitated,  or  a  receiver  regularly  placed  in  charge. 

No  little  interest  is  manifested  here,  particularly  by  the  news])apers,  to  ascertain  pre- 
cisely how  mucli  money  was  to  the  credit  of  the  city  treasurer  when  the  bank  closed, 
and  iiiany  reports  ha  ve'been  publisheil  putting  the  amount  many  hundreds  of  thousands 
above  the  amount  ($400,000),  limited  by  city  councils.  I  have  studiously  declined 
to  give  any  information  to  anybody,  for  no  good  purpose  would  be  subserved  by 
doing  so.    The  facts  are  as  follows : 

John  Bardsley,  city  treasurer $600, 606. 65 

John  Bardsley,  special 35,  881. 55 

John  Bardsley,  overdniwn 34, 008. 52 

His  bondsmen  are  very  rich  men,  and  I  hear  to-day  that  they,  and  other  of  his 
friends  will  8o<m  arrange  to  relieve  him  from  his  present  embarrassment  on  acount  of 
the  bank.  A  list  of  the  larger  dejiositors  having  balances  in  considerable  amounts, 
taken  off  by  me  to-«lay  show  that  79  a<''s  have  credit  balances  aggregating  $325,000, 
an  average  of  more  than  $4,000  ea«'h. 

By  having  placed  yesterday  by  mistake  in  the  vanlt  the  records  showing  In  de- 
tail the  ctmdition  of  the  bank  at  close  of  business  March  19,  particularly  the  morn- 
ing of  closure,  1  am  unable  to  forward  herewith  that  exhibit.  The  skeleton  report 
hurriedly  made,  which  I  enclosed  in  my  letter  to  you  of  the  19th,  shows  substantially 
that  condition. 
.  I  have  called  in  many  pass  books,  and  to-morrow  shall  send  out  '^calls''  for  the 


INVESTIGATION    OF    NATIONAL    BANKS. 


If)! 


Tcoiain<ler.  I  have  also  sent  to  all  persons  '^overdrawn"  an  order  to  make  «j;ood  <»r 
sccunr  their  overdrafts,  and  shal  Itake  active  measures  through  the  attorney  for  th<' 
bank,  or  otherwise,  to  secure  payment  of  all  overdue  paper.  Indeed,  some  steps 
have  already  l)een  taken  in  that  direction. 

1  shall  have  tomorrow  the  report  of  the  attorneys  of  the  bank  on  the  condition 
and  value  of  the  property  at  the  seashore,  and  will  make  the  necessary  report  to  y<ni 
as  soon  as  practicable. 

I  have  already  had  a  consultation  with  the  U.  S.  district  attorney  with  ref- 
erence to  Mr.  Marsh,  and  shall  see  him  again  to-morrow.  So  far  it  has  been  thought 
best  to  defer  proceedings  until  the  bank  could  fully  utilize  his  almost  indispensable 
aid  in  ascertaining  the  true  facts  concerning  the  deficit,  and  in  making  recovery  of 
the  same  so  far  as  possible. 

If  he  turns  over  to  me,  as  he  says  he  can,  early  in  the  week,  4,000  shares  of  the 
bank's  sto(^k,  1  shall  take  custody  of  the  same.  Such  a  step  might  be  of  much  im- 
portance Just  now.  I  will  endeavor  to  keep  you  fully  informed  of  all  operations  and 
prospects. 

\'ery  respectfully, 

W.  P.  Drew, 
Nat,  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C 

In  lieu  of  full  report  from  papers  locked  up  in  vault,  I  enclose  transcript  of  state- 
ment at  close  of  business  on  the  19th  inst.,  the  last  day  the  bank  was  open. 

Close  business  Meh.  19, 1891. 


Due  bills 

Capital  Htock 

(^Mrciilation 

Profit  and  loss 

Int«^rest 

Discount 

Exchange 

Surplus  fund 

Bills  discounted 

short 

U.S.  Bonds 

R.  Fund  with  U.  S.  T  .. 
Furniture  and  fixtures  . 

Premium 

Expenses 

Dividend 

Individual  deposits 

Due  by  and  to  B.  and  B 

for  collections 

Tradesmens,  N.  Y 

Chase,  N.  Y 

Cash 

Suspense  

Shorts  and  overs , 

Cert,  of  dep 

Stocks  and  bds 

Due  C.  House 


Overdrafts 


Assets. 


$14,593.51 


1, 663. 40 


860,  70.'),  80 
76.  513.  01 
50,  000.  00 
2; 250. 00 
10, 000. 00 
2, 000.  00 
24, 573. 26 


47, 938. 52 


1, 757. 32 

765. 02 

80, 100.  75 

312, 613. 56 

1, 078. 81 

'768,' 696.' 62' 


Liabilities. 


$42,994.63 

500, 000. 00 

45.  000. 00 

11, 516. 97 


12,451.92 


100,000.00 


6, 120. 00 

1,181,577.27 

7, 379. 93 

1, 3.'>0. 35 


7,971.91 

344,886.60 


2,261,249.58  I 
139,343.12  I 


2,261,249.58 
139.343.12 


2,400,592.70 


2,40(t,592.70 


(^■i 


I  wish  t;0  state  here  that  this  was  the  first  information  from  Mr. 
Drew  in  regard  to  any  overissue  of  stock,  and  this  was  after  the  bunk 
was  closed  by  me. 

By  the  Chairman: 

Q.  Is  that  statement  here  which  is  referred  to  in  that  letter? — A. 
That  is  not  here.  It  was  just  a  brief  memorandum  on  a  slip  of  paper. 
That  is  ftilly  covered  by  his  official  rej^ort  later  on,  but  the  slip  ought 
to  have  been  copied. 

Q.  The  Mr.  ''  W.''  referred  to  in  Mr.  Drew's  eommtunication  of  March 
22,  1891,  means  Mr.  Wanamaker?— A.  Yes,  sir. 


1  r»i> 


INVKSTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


153 


if 


% 


« 


:)■ 
1 


V*y  Mr.  DirKERSON: 

().  ICxphiiii  in  ivt'eivnce  to  this  the  question  of  overissue  of  stock. 
Tli(*  uiK'aiicekMl  old  certiticates  of  stock  were  put  upon  tlie  market  im- 
proixnly  ? — A.  They  were  uncanceled  certificates  that  had  been  sur- 
rendered. 

Q.  I  thouji'lit  that  the  new  stock  was  issued  and  the  old  ones  can- 
celed?— A.  No.  Mr.  Lucas  might  have  a  certificate  for  100  shares  of 
stoc-k-  Me  would  sell  it  to  Mr.  Joues^  and  Mr.  Lucas  would  assign 
that  in  blank  and  deposit  it  with  the  cashier,  and  the  cashier  would 
issue  to  Jones  KK)  shares  of  new  stock,  but  the  old  certificate  would 
remain  un('aneeled.  Lucas  would  afterwards  use  the  old  certificate  by 
handing  it  over  to  Mr.  Wanamaker  as  collateral. 

[Private.] 

Philadelphia,  March  S3.  1891. 

Sir:  I  expect  that  to-morrow,  after  making  an  examination  of  the  condition  of 
tin*  iisscts  and  liabilities  of  tht'  bank,  so  far  as  I  can  properly  exhibit  them,  the 
parties  who  are  contemplating  the  rehabiliation  of  the  bank  will  come  to  some 
conrlnsion  on  the  subject.  Should  any  result  be  reached  I  will  promptly  communi- 
cate the  same  to  yon.  Meanwhile,  affairs  of  the  bank  are  goinj;  on  smoothly,  and 
lists  of  assets  and  lial)ilities  are  beinji;  prepared.  A  few  questions  concerning;  dis- 
l)osiliou  of  collections,  <fce.,  will  be  submitted  to  you  in  a  letter  from  Mr.  Stoddard 
to-morrow.  I  saw  the  U.  S.  Dist.  Atty.  to-day,  and  he  fully  agreed  in  the  wisdom 
of  refraining  from  any  action  in  regard  to  Mr.  Marsh  for  the  present  because  of  the 
indispensable  assistauctj  he  renders  towards  developing  the  true  facts  con<'ernin«if 
the  former  management,  and  his  zeal  in  urging  resumption.  The  Dist.  Atty.  showed 
me  confidentially  a  dispatch  from  the  Atty.  Gen.  U.  S.  at  Washin/i^ton,  directin«j  the 
Dist.  Atty.  to  take  no  action  in  Mr.  Marsh's  case  for  the  present.  I  do  not  know 
what  that  comes  from  precisely,  but  I  thought  I  ought  to  inform  you  of  the  matter. 

Mr.  \V.  has  consented  to  return  the  uncanceled  old  certificates  of  stock,  for  a 
consideration  from  Mrs.  Lucas,  as  I  learn,  and  I  expect  to  have  them  in  my  i)088es- 
siou  to-morrow. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Exmr, 

Hon.  E.  8.  Lacey, 

Comptroller  of  the  Currency f  Washington,  D.  C. 

By  Mr.  Cox: 

.  Q.  How  does  that  last  paragraph  read! — A.  (Reading.)  "  Mr.  Wana- 
maker has  consented  to  return  the  uncanceled  old  certificates  of  stock 
for  a  consideration  from  Mrs.  Lucas." 

[The  Continental,  J.  E.  Emgsley  &  Co.,  Philadelphia.] 

March  23,  1891. 

Dear  Mr.  Lacey:  I  shall  be  able  to-morrow  to  give  you  a  fair  statement  of  the 
situation  with  respect  to  the  fate  of  the  bank. 

Everything  remains  quiet  and  the  bank  doors  remain  open  permitting  depositors 
to  come  in  and  propound  the  numerous  questions  usual  in  such  cases. 

The  general  feeling  seems  to  be : 

First,  security  on  the  part  of  depositors,  and 

Second,  earnestness  on  the  part  of  reliable  stockholders  in  promptly  maturing  a 
]»lan  to  prevent  a  receivership. 

Developments  to-morrow  with  respect  to  reducing  4,000  shares  to  possession  of  the 
bank  without  consideration  and  the  return  of  certain  stock  for  cancellati«m,  will  de- 
termine the  impetus  with  which  stockholders  will  move.  The  Attorney-General 
wire<l  the  district  atty.  not  to  take  steps  against  Mr.  M.  without  orders  from 
him.  It  seems  to  me  that  if  such  steps  were  taken  at  present,  it  would  be  disastrous 
ill  more  than  one  direction. 

1  hope  to  be  able  to  convey  pleasant  news  to-morrow. 

As  yon  will  notice,  1  am  at  '^The  Continental." 
With  much  respect, 

C.  J.  Stoddard. 

Hon.  E.  8.  Lacey, 

Comptroller  of  the  Currency, 


Keystone  National  Bank, 
Philadelphia,  March  24th,  1891. 

Sir:  On  the  afternoon  of  the  19th  inst.,  after  4  p.  m.,  the  city  treasurer  deposited, 
in  accordance  with  the  custom  or  usage,  certain  cash  and  checks  amounting  to 
$53,395.44. 

The  city  treasurer,  who  was  in  the  bank  to-day,  claims  that  these  daily  dejuisits 
late  in  the  day  were  for  safe-keeping  until  the  next  day,  when  they  send  over  their 
dejiosit  hook  to  have  the  proper  entries  made  therein.  The  bank,  in  order  to  in- 
crease its  items  for  the  clearing  house,  took  out  of  the  deposit,  in  accordance  with 
])revious  custom,  cash  and  clearing  house  checks  to  the  amount  of  $23,B07. 23,  making 
out  a  deposit  slip  and  crediting  it  as  a  city  treasurer  deposit  for  the  19th.  On  the 
morning  of  the  20th  a  deposit  ticket  for  the  balance  was  made  out,  it  being  intended 
for  credit  on  that  date. 

The  city  treasurer  now  claims  a  return  of  the  whole  amount,  but  as  $23,607.23  had 
been  credited  to  his  account  and  mixed  with  the  general  funds  of  the  bank,  the  ques- 
tion now  arises  as  to  what  shall  be  retunied  to  him,  if  anything.  We  have  checks 
and  cash  to  the  amount  of  $29,081.33  of  the  total  fund  above  referred  to,  which  has 
not  been  credited  to  his  account.  Can  this  be  returned  as  not  belonging  to  the  as- 
sets of  the  bank?  I  suppose  this  is  the  extent  to  which  the  examiner  can  go,  on  the 
principle  that  no  national  bank  can  after  an  act  of  insohency  receive  deposits  for 
any  other  purpose  than  safe-keeping,  and  that  this  part  of  the  fund  at  least  can  be 
recovered  through  legal  proceedings. 

As  the  treasurer  is  compelled  to  make  his  official  report  to-morrow,  and  the  whole 
lun<l  must  he  accounted  for  in  some  way,  he  has  requested  that  you  should  be  asked 
to  wire  the  examiner  to-morrow,  at  your  earliest  convenience,  instructions  for  his 
guidance. 

Yours  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency, 

By  the  Chairman  : 

Q.  With  regard  to  that  letter  of  March  24, 1891,  of  Mr.  Stoddard,  the 
Attorney-General  seems  to  have  intervened  about  the  Marsh  matter. 
State  whether  you  had  any  consultation  with  him  about  that. — A.  No, 
sir. 

Q.  Nor  with  the  Solicitor-General? — A.  Except  the  consultation  of 
March  19. 

Q.  Can  you  afford  us  any  light  in  any  way  as  to  how  the  Attorney- 
General  came  in  at  that  time? — A.  I  have  no  knowlege  as  to  why  he 
so  acted. 

Q.  Do  you  know  what  that  allusion  in  the  letter  means  where  it  says 
"it  would  be  disastrous  in  more  directions  than  one?" — A.  I  only  know 
what  the  letter  says. 

[Confldential.] 

Philad'a,  Mch.  24,  1891. 

Dear  Sir:  Yours  of  2l8t  inst.  is  received  to-day.  I  sincerely  hope  it  may  not  be 
necessary  to  appoint  a  receiver  for  the  bank  in  question,  and  if  it  should  be  neces- 
sary, that  no  one  should  be  appointed  who  is  a  ''candidate,"  either  directly  or  through 
any  of  the  parties  in  interest. 

The  name  I  have  to  propose,  should  you  determine  to  make  the  appointment,  is  that 
of  a  gentlemen  who  will  go  to  the  bottom  of  the  matter  without  fear,  and  who  will 
make  you  a  report  that  may  be  depended  upon  absolutely  for  its  integrity. 
I  am  yours  very  resp'y, 

B.  B.  Comegys. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency, 


J 

1 


it 


.i3 


154  INVESTIGATION   OF   NATIONAL   BANKS. 

[Cr.  W.  Mai^h,  president.    John  Hayes,  cashier.    Chas.  Lawrence,  asst.  cashier.] 

Keystone  National  Bank, 
1326  AND  1328  Chestnut  Street,  Opposite  U.  S.  Mint, 

Philadelphia,  Mch,  34,  1891. 

T>KAR  Mr.  Lacey:  This  bank  at  date  of  suspension  held  a  few  items  for  collection 
for  customers,  such  items  not  having  been  entered  on  the  books  as  credits,  nor  on 
pass  bc^oks  as  deposits.  They  formed  no  part  of  the  bank's  assets  and  were  collected 
for  accommodation.  Moneys  received  since  suspension  for  these  items  have  been 
kept  separate  in  each  day's  transactions,  and  a  few  persons  not  indebted  nor  liable  in 
any  way  to  the  bank  request  delivery  of  proceeds  as  a  measure  of  relief. 

May  the  examiner  make  such  deliveries  upon  request? 

2nd.  A  creditor  has  requested  the  return  of  two  notes  (foreign)  which  were  placed 
in  the  bank  for  collection.  One  was  not  endorsed,  and  the  bank  has  no  title  iu 
either.  He  is  not  liable  to  the  bank  in  any  way,  and  I  don't  see  how  they  can  ever 
become  assets  of  the  bank. 

May  the  notes  be  delivered  as  he  requests  f 

3rd.  A  creditor,  and  who  is  a  customer,  is  the  treasurer  of  a  manufacturing  company 
and  has  been  accustomed  to  deposit  collection  items  of  the  company,  endorsed  over 
to  him  for  his  individual  account.  He  is  a  large  creditor  and  not  individually  liable. 
The  company  is  also  a  creditor,  but  is  liable  for  unmatured  discounts  in  excess  of 
balance.  Mr.  Gray's  items  are  being  collected  by  the  examiner,  and  the  former  de- 
sires the  proceeds  as  collected. 

It  should  be  said  that  are  not  many  cases  of  a  character  as  above  described,  and 
that,  through  the  foresight  of  Mr,  Drew,  the  books  of  the  bank  are  up  to  date,  so 
that  tlie  liability  of  any  person  can  be  determined  without  difficulty. 

Mr.  Drew  is  aware  that  an  examiner  is  not  authorized  to  pay  out  funds  of  the  bank, 
but  as  these  collection  proceeds  do  not  belong  to  the  bank,  I  think  he  may  safely 
give  affirmative  answers  in  the  first  two  cases  at  least,  and  probably  in  the  third. 

These  matters  will  rest  quietly  for  a  few  days  if  the  bank's  fate  is  quickly  deter- 
mined, but  after  that  ))ersous  may  demand  to  know  the  authority  for  withholding 
collections  made  by  the  examiner  as  an  agent. 

What  do  you  advise? 

With  respect  to  the  city  treasurer  matter,  the  subject  of  Mr.  Drew's  official  com- 
munication, I  can't  see  how  his  demand  for  moneys  collected  on  the  20th  can  consist- 
ently be  refused.  Could  he  not  succesafully  claim  that  the  whole  fund  should  be 
treated  as  though  deposited  on  the  SOth,  even  though  he  knew  the  custom  of  the  bank  ? 
He  will  rest  content,  however,  with  the  return  of  the  money  collected  on  the  20ih 
and  the  checks  returned  not  paid. 

There  are  some  very  strong  men  who  appear  to  be  willing  to  co-operate  in  any  well- 
considered  plan  to  save  the  bank  from  a  receivership  and  continue  the  banking  busi- 
ness on  the  "old  stand." 

There  wUl  no  doubt  be  some  develojrmenfc  in  a  day  or  two,  as  it  is  felt  that  delay  is 
harmful. 

With  much  respect, 

C.  J.  Stoddard. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 

By  Mr.  Cox : 

Q.  In  the  letter  of  Mr.  Comegys  of  March  24, 1801,  he  does  not  sug- 
gest the  niiine  of  the  gentleman  at  all?— A.  No,  sir;  he  had  not  yet 
jnentioned  tlie  gentleman's  name. 

Q.  Bo  you  know  to  whom  that  second  question  in  that  letter  refers! — 
A.  To  Mr.  Gray,  who  was  treasurer  of  a  manufiicturing  cojnpany,  if  I 
recollect  correctly. 

Q.  You  do  not  remember  tlie  title  of  the  company  f— A.  No,  sir. 

[Telegram.] 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Cijrrkxcy, 

Washinqtou,  March  25, 1891. 
W.  P.  Drew,  "      '  ' 

Examiner  in  charge  Keystone  National  Bank,  Philadelphia,  Pa.: 

Letter  twenty-fourth  received.     Adjustment  with  city  treasurer  must  await  ap- 
pointment of  receiver. 

E.  S.  Lacey, 

Comptroller. 


INVESTIGATION   OF   NATIONAL   BANKS. 


155 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  25,  1891. 

Dear  Sir:  Your  communication  is  at  hand,  intimating  that  certain  parties  would 
surrender  to  you  some  4,000  shares  of  stock  in  the  Keystone  National  Bank. 

If  this  will  enable  the  bank  to  resume  business,  or  in  any  way  work  to  its  advan- 
tage, I,  of  course,  would  make  no  objection ;  but  it  must  be  distinctly  understood  that 
the  individual  liability  of  every  shareholder  attaches  at  the  date  of  insolvency,  and 
that  no  transfer  of  stock  since  that  ttme  will  be  permitted  to  work  a  release  thereof 
if  it  shall  become  necessary  to  resort  to  a  winding  up  of  the  affairs  of  the  bank. 

Bear  this  in  mind  iu  any  transaction  connected  with  the  transfer  of  shares.     No 
t  ransfers  upon  the  books  of  the  bank  or  reissue  of  certificates  should  be  made  while 
the  bank  is  in  your  hands. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 
Mr.  W.  P.  Drew, 

Examiiur  in  charge  Keystone  National  Bank,  Philadelphia^  Fa. 


'  Treasury  Department, 

Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  25,  1891. 

Dear  Sir:  Your  letter  of  the  24th  instant  camie  to  baud  by  due  course  of  mail.  I 
note  what  you  say  in  reference  to  a  certain  deposit  made  in  the  Keystone  National 
Bank  by  the  city  treasurer,  part  of  which  was  placed  to  his  credit  on  the  19th  instant 
and  a  jmrt  intended  to  be  credited  on  the  20th,  but  the  credit  was  not  completed. 

After  consultation  with  the  Solicitor  of  the  Treasury  I  telegraphed  you  as  follows, 
which  is  hereby  confirmed : 

''Letter  of  twenty-fourth  received.  Adjustment  with  city  treasurer  must  await 
appointment  of  a  receiver." 

I  an>  of  the  opinion  that  the  amount  credited  to  the  city  treasurer  on  the  19th  has 
become  a  portion  of  the  assets  of  the  bank,  and  that  the  city  treasurer  is  a  general 
creditor  so  far  as  relates  to  that  sum.  The  amount  which  was  not  so  credited,  and 
has  remained  separate  and  apart  from  the  other  assets  of  the  bank,  may  possibly  be 
held  as  not  constituting  a  deposit. 

This  matter,  however,  being  still  in  doubt,  the  Solicitor  advises  me  should  be  left, 
for  adjustment  by  the  receiver  when  appointed. 

I  regret  the  necessity  for  delay  in  this  matter,  but  do  not  feel  authorized  to  pay  over 
moneys  which  may  be  possibly  held  to  be  a  part  of  the  assets  of  the  bank. 

I  also  have  a  letter  from  Mr.  Stoddard,  in  which,  by  your  direction,  certain  in-* 
quiries  are  submitted. 

The  first  inquiry  submitted  by  him  reads  as  follows : 

''  This  bank  at  the  date  of  suspension  held  a  few  items  for  collection  for  customers, 
such  items  not  having  been  entered  on  the  books  as  credits,  nor  on  pass  books  as  de- 
posits. They  formed  no  part  of  the  bank's  assets  and  were  collected  for  accommoda- 
tion. Moneys  received  since  suspension  for  these  items  have  been  kept  separate  in 
each  day's  transactions,  and  a  few  persons,  not  indebted  nor  liable  in  any  way  to  the 
bank,  request  delivery  of  proceeds  as  a  measure  of  relief." 

In  reply  you  are  respectfully  informed  that  you  may  make  such  delivery,  upon 
request,  taking  satisfactory  receipt  from  undoubted  owners,  who  are  not  in  any  way 
indebted  to  the  bank. 

The  second  inquiry  reads  as  follows: 

''A  creditor  has  requested  the  return  of  two  notes  (foreign)  which  were  placed  in 
the  bank  for  collection.  One  was  not  endorsed  and  the  bank  has  no  title  to  either. 
He  is  not  liable  to  the  bank  in  any  way,  and  I  don't  see  how  they  can  ever  become 
assets  of  the  bank.    May  the  notes  be  delivered  as  he  requests?" 

In  reply  you  are  informed  that  these  notes  may  be  returned  to  the  owners,  upon 
recjuest,  and  upon  their  making  a  proper  receipt  therefor. 

As  to  the  third  inquiry,  which  refers  to  a  customer  of  the  bank  who  is  the  treas- 
urer of  a  manufacturing  company,  you  are  respectfully  advised  that  an  adjustment 
of  the  atfairs  of  this  customer  and  the  company  of  which  he  is  treasurer  must  await 
the  appointment  of  a  receiver. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 

Mr.  W.  P.  Drew, 

Examiner  in  charge  of  Keystone  National  Banlc,  Philadelphia,  Pa, 


\  'r 


> : . 


I*' 


:,,  iTii'!  ''* 


156 


INVESTIGATION   OP   NATIONAL    BANKS. 


INVESTIGATION    OF   NATIONAL    BANKS. 


157 


m:% 


i"fH 


i^.wmmt 


U 


I.  r, 


Philadelphia,  March  25,  1891. 
Sir:  A  representative  of  the  parties  who  have  in  contemplation  the  rehabilitation 
of  No.  2291  was  shown  to-day  a  general  statement  of  the  condition  of  the  hank,  and 
expressed  satisfaction  therewith,  exce]>t  with  the  item  of  seashore  property.  He 
stated  tliat  lie  would  lay  the  matter  before  his  principals,  and  after  they  had  come 
to  a  conclusion  would  inform  me  of  the  result.  Some  other  parties  are  considering 
the  matter,  including  one  from  New  York,  but  1  do  not  place  much  c<mtidence  in 
them.  I  will  inform  you  prom])tly  of  the  result.  The  proper  c«mrage  and  enterprise 
to  resuscitate  the  bank  seems  wanting  on  the  part  of  the  stockhohlers,  and,  in  my 
judgment,  they  will  deserve,  little  8ymi>athy,  after  all  the  ai)peal8  to  protect  their 
own  interest,  if  they  nuike  a  loss  of  most  of  all  of  the  stock. 

Mr.  Stodilard  is  of  almost  essential  importance  here,  and  I  hope  you  will  continue 
the  favor  of  i)ermitting  him  to  remain  for  some  days  longer. 

The  ''olive  branch"  has  pas8e<l  between  Mr.  \V.  and  Mr.  Marsh,  and  the  bitterness 
seems  to  have  departed. 

The  uncaneelled  stock  (some  2,400  shares)  I  expected  to  have  in  possession  to-day, 
but,  for  convenience  of  all  parties,  the  return  of  the  same  has  been  deferred  until  to- 
morrow, when  time  can  be  bad  to  compare  and  adjust  each  certiticat^j  with  the  old 
stock  books. 

Very  respectfully,  , 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacky, 

C&mptroller  of  the  ('lirrencf/,  Washington,  D.  C, 


[G.  W.  Marsh,  president.    .Tolin  Hayes,  cashier.    Charles  Lawrence,  ass'tcash.] 

Kevstoxe  National  Bank, 
1326  and  1328  c|ikstnut  street,  orposite  ij.  s.  mint, 

Philadelphia,  Mch.  26,  1891. 

Dear  Mr.  Lacey:  I  am  sorry  that  there  was  not  enongh  change  in  the  situation 
yesterday  to  justify  an  assurance  to  you  that  the  avoidance  of  a  receivership  was 
pr(»bable,  still  etforts  in  the  right  direction  are  by  no  means  abandoned.  Those  in- 
terested iire  aware  that  a  trust  can  not  be  postponed  indefinitely,  and  it  is  likely 
that  some  ste})8  will  have  been  taken  and  some  point  reached  by  Saturday  afternoon. 

Mr.  Drew  will  more  pointedly  give  you  the  situation  by  same  mail  this  evening. 

The  peculiar  stock  was  in  hand  yesterday  and  will  be  delivered  to-morrow.  To-day 
I  drew  otf  a  list  of  outstanding  stock  from  stubs,  and  shall  emleavor  to-morrow  to 
ascertain,  in  conjunction  with  the  examiner  and  his  assistant,  what  the  status  is. 

Peculiar  methods  and  carelessness  with  respect  to  transfers  of  stock  and  cancella- 
tion may  prevent  perfect  reconcilement.  1  should  regret  an  abandonment  by  present 
stockholdei-8  of  their  interests  in  such  a  splendid  banking  franchise,  and  those  who 
have  shown  an  iut«*re8t  in  its  fate  have  bei'u  warned  as  to  the  unavoidable  sacrifices 
which  a  receiversbip  entails.  Mr.  Drew  han<lle8  matters  a(hnirably,  but  insists  that 
ray  services  are  of  some  value.  Your  telegram  of  yesterday  and  letter  tliis  morning 
are  acknowledged,  instructions  having  been  followed.  1  shall  be  in  Washington 
on  Sunday. 

With  much  respect, 

C.  J.  Stoddard. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency. 


Philadelphia,  March  26, 1891. 
Sir:  The  work  of  verifying  and  com])aring  mor«'  than  2,300  of  uncancelled  certifi- 
cates of  stock  of  2291  of  date  mostly  1883,  returned  to  the  bank  by  the  attorney  of  Mrs. 
Lucas,  has  occupied  very  much  of  our  attention  tbrough  the  day;  to-morrow  we  ex- 
pect to  have  the  record  comydete,  together  with  such  as  were  not  noted  on  the  stubs 
at  time  of  abstraction.  The  result  of  this  work  will  be  an  authentic  condition  of 
the  stock  at  the  present  time.  Matters  generally  at  the  bank  are  as  usual,  but  many 
points  are  constantly  presented  which  only  the  presence  of  Mr.  Stoddard  has  readily 
explained  and  adjusted.  I  notified  all  employes  except  three,  whose  attendance  will 
be  needed  for  a  time  longer,  that  their  connection  would  cease  on  the  3l8t  instant. 
Most  of  the  pass-books  have  been  called  in,  and  many  are  on  their  way.  So  far  no 
serious  discrepancy  has  appeared.     I  have  not  yet  made  call  for  certificatea  of  deposits 


publicly  in  the  papers,  for  the  reason  that  it  might  increase  unnecessarily  the  feeling 
in  regard  to  the  bank.  I  have  no  reason  to  doubt  the  accuracy  of  this  ac.  in  the 
books,  but  shall  endeavor  to  fully  satisfy  myself  in  all  cases  as  soon  as  practicable. 
No  notes  have  as  yet  gone  to  protest,  and  collections  are  constantly  coming  in.  I 
have  called  for  all  outstanding  bank  balances,  and  all  will  no  doubt  soon  be  in. 
Every  irausaction,  since  the  moment  of  closing,  has  been  fully  and  minutely  recorded, 
and  i  believe  the  books  and  acs.,  as  well  as  the  records  of  the  bank,  are  in  thorough 
order  and  ui>  to  date. 

I  saw  to-day  a  representative  of  those  who  have  had  the  subject  of  relieving  the 
bank  under  consideration,  and  they  are  not  prepared  quite  yet  to  give  any  definite 
answer.  They  talk  of  guaranteeing  the  deposits  of  the  bank,  which  then  should  go 
into  liquidation  by  forming  a  new  bank  at  once,  to  occupy  the  rooms  of  this  bank, 
taking  the  assets  of  this  bank  to  recoup  themselves  from,  engaging,  when  such  de- 
iiosit  debt  is  paid  therefrom,  to  turn  over  the  balance,  if  any,  of  assets,  to  the  stock- 
hohlers, to  be  liquidated  by  and  for  themselves.  What  will  be  the  result  I  cannot 
say,  but  I  have  told  them  that  immediate  action  is  required  pro  or  con  on  their  part. 

Another  proposition,  which  has  gained  much  acceptance  to-day,  is,  following  your 
order  for  assessment  of  50  per  cenf  on  the  stock,  and  which  was  being  entered  upon 
when  the  bank  was  summarily  closed,  is  when  the  4,000  shares  are  turned  in,  then  to 
collect  from  the  remaining  6,000  shares  $150,000,  which  if  successful  would  put  $350,000 
fresh  capital  into  the  bank.  Several  stockholders  have  been  interviewed  already  on 
this  point,  and  a  systematic  effort  to  see  mcJst  of  the  rest  will  be  made  to-morrow  and 
also  some  depositors  who  have  expressed  a  willingness  to  accept  stock  under  a  new 
management  for  the  amt.  of  their  deposits  will  also  be  seen  and  a  vigorous  and 
systemati(;  plan  to  eflfect  these  purposes  has  been  entered  Tipon. 
'  Of  the  4,000  shares  likely  to  be  returned  to  the  bank  without  consideration,  tme  of 
our  bank  ])residents  here  has  offered  to  take  and  pay  for  $50,000,  and  another  bank 
president  $25,000,  after  satisfying  themselves  that  it  would  be  safe  to  do  so,  and  these 
gentlemen,  being  men  of  recognized  financial  and  business  strength,  would,  I  think 
lead  others  to  consider  the  same  step.  I  will  keep  you  fully  informed  of  all  progress 
in  all  matters. 

It  has  occuiTed  to  me  that  perhaps,  if  you,  agree  in  the  wisdom  of  still  further 
leniency  in  tbe  way  of  delay  to  ap}>oint  a  receiver,  you  would  feel  willing  to  let  me 
hold  the  trust  for  a  little  longer  period  to  give  time  to  show  whether  the  plans  re- 
ferred to  can  be  consummated.  I  think  the  interests  of  all  concerned  now  are  as 
secure  as  if  a  receiver  were  in  possession,  and  perhaps  the  knowledge  of  the  situa- 
tion and  also  my  accjuaintance  with  parties  likely  to  help  the  bank  in  its  extremity 
will  pardon  longer  indulgence  on  the  part  of  the  Comptroller. 

All  of  your  directions  have  been  fully  and  faithfully  carried  out  and  the  feeling 
that  the  office  will  render  every  encouragement  is  appreciated.  If  you  agree  with 
me  I  would  respectfully  suggest  that  you  fix  a  time  at  which  these  negotiations  for 
recovery  must  be  beyond  question  certain  to  be  successful  or  the  alternative  of  a 
receiver  surely  expected. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner, 
'   Hon  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C, 

Q,  I  notice  there  are  some  references  to  certificates  of  deposit. 
Won't  you  recur  to  that  a  moment? 

The  Witness  (reading).  "  I  have  not  yet  made  a  call  for  certificates 
of  deposit  publicly  in  the  papers." 

(The  letter  read  by  witness  is  from  Mr.  Drew,  dated  March  26,  1801.) 

Q.  Is  there  something  further  about  that? — A.  What  brought  that 
out  was  that  Mr.  Stoddard  suggested  to  him  to  advertise  that  anyone 
holding  certificates  of  deposit  should  bring  them  in. 

Q.  He  (the  writer)  says  he  has  no  reason  to  doubt  the  accuracy  of 
that  account. 

The  Witness  (reading  letter).  "I  have  yet  made  no  call  of  certifi- 
cates, because  ittuiight  increase  unnecessarily  the  feeling  in  regard  to 
the  bank.  I  have  no  reason  to  doubt  the  accuracy  of  that  account  in 
the  books,  but  shall  satisfy  myself  in  all  cases  as  soon  as  practicable." 

Q.  The  certificates  of  deposit  did  not  cover  this  account  which  they 
call  the  duebill  account? — A.  No,  sirj  no  reference  is  made  in  this  let- 
ter to  that. 


m 


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158 


INVESTIGATION   OF   NATIONAL   BANKS. 


tit 


INVESTIGATION   OF   NATIONAL   BANKS. 


159 


II 


II 


■^2 


Q.  You  do  not  understand  that  the  expression  "certificate  of  de- 
posit refers  to  this? — A.  They  were  two  separate  and  distinct  ac- 
counts. 

Q.  As  a  matter  of  fact,  do  you  find  that  the  duebill  account  discloses 
thatf — A.  The  duebilJ  account  showed  a  very  large  indebt^ness  that 
was  not  known  to  tlie  examiner  or  the  Comptroller;  also  the  certificate 
of  deposit  accounts  showed  gross  irregularities. 

By  Mr.  Cox: 

Q.  I  did  not  understand  clearly  why  so  much  wa«  paid;  or  did  he 
l»r()pi)se  to  i)ay  *^on  the  stock  that  was  out?" — A.  The  Lucas  estate 
and  other  parties  in  interest  projjosed  to  surrender  4,000  shares  of 
stock,  and  in  order  that  tlie  bank  might  make  use  of  these  shares  and 
theiel)y  put  itself  in  possession  of  funds.  I  understand  this  letter  to 
mean  that  one  bank  president  offered  to  take  $50,000  w^orth  and  another 
$135,000,  and  put  the  money  into  the  bank,  if,  upon  examination,  they 
found  it  safe  to  <lo  so. 

By  the  Chairman: 

Q.  As  to  the  remaining  6,000  shares,  the  proposition  was  that  they 
sliou  Id  pay  the  50  per  cent  assessment  ? — A.  Yes,  sir.  They  were  to  pay 
the  50  per  cent  assessment,  which  would  put  the  bank  in  possession  of 
funds. 

Q.  I'hose  4,000  shares  that  seem  to  belong  to  Lucas  is  not  the  over- 
issue of  stock? — A.  That  is  not  disclosed.  I  do  not  know  whether  it 
includes  the  overissue  or  not.    I  would  not  want  to  say. 

Q.  In  the  letter  preceding  this  one  the  examiner  notified  you  that 
the  overissue  of  stock  had  been  returned  to  him? — A.  Yes,  sir. 

By  Mr.  Cox : 

Q.  In  the  letter  he  speaks  of  the  "olive  branch  of  peace.''  Two  thou- 
sand five  hundred  shares  had  been  returned  prior  to  the  writing  of  this 
letter. 

By  Mr.  Sperry: 

Q.  That  is  shown  on  the  stock  ledger. — A.  From  the  information  1 
got  the  ledger  had  not  been  posted  for  two  years  when  the  bank 
closed.  The  whole  stock  business  was  in  great  confusion,  very  great 
confusion,  but  they  have  the  stxKjk  books  which  show  the  transfers  and 
and  the  certificates  and  stubs. 

Q.  There  was  a  stub  left! — A.  Certainly. 

Q.  You  did  not  know  whether  there  was  a  minute  on  that  stub? — A. 
I  would  not  want  to  testify  in  regard  to  that,  because  I  have  not  per- 
sonally examined  them.    The  experts  can  state  explicitly  as  to  that. 

By  Mr.  Cox : 

Q.  What  was  the  total  amount  of  the  stock  that  was  issued,  includ- 
ing that  overisiue  of  4,000  shares? — ^A.  There  was  an  overissue  of  2,516 
shares. 

Q.  What  was  the  aggregate  of  stock?— A.  There  was,  legitimately 
or  should  have  been,  10,000  shares  of  $50  each.  There  was  in  reality 
12,516. 

Q.  They  had  made  what  might  be  denominated  si  fraudulent  issue 
of  2,516  shares? — A.  Yes,  sir. 

Q.  Does  the  expression  referring  to  "the  stock  that  was  in  hand,  and 
would  be  delivered  to-morrow"  mean  the  overissued  stock?  Did  not 
the  examiner  report  what  had  been  vsurrendered  several  days  prior  to 
that?— A.  The  letter  from  Mr.  Drew  that  1  have  just  read  is  dated  the 
same  day  that  Mr.  Stoddard's  letter  is.    Mr.  Drew's  letter  commences 


with  the  words,  ^^the  work  of  verifying  more  than  2,.*>00  uncanceled 
certificat(*s  of  stock"  and  he  says,  "this  has  occupied  much  of  our 
attention  during  the  day."  1  should  think  the  explanation  of  it  was 
til  at  it  was  handed  to  them  to  be  verified,  and  if  shown  to  be  an  over- 
issut^  it  was  to  be  surrendered  next  day. 

Q.  The  next  letter  of  Stoddard's  is  of  the  same  date? — A.  Yes,  sir; 
the  same  date  as  Drew's.  He  said  "the  stock  was  in  hand  yesterday 
and  will  be  delivered  to-morrow."  That  would  seem  to  indicia te  that 
tliey  had  handed  it  in  and  they  had  been  at  work  verifying  it,  but  it 
was  not  to  be  surrendered  until  the  next  day. 

By  Mr.  Dickerson  : 

Q.  That  was  the  examination  and  not  the  surrender  of  the  stock? — A. 
Yes,  sir.  The  surrender  was  to  take  place  the  next  day,  when  they 
had  determined  whether  it  was  overissue<l.  1  received  a  letter  dated 
March  27,  addressed  to  me  by  Rufris  H.  Thayer,  jiresident  City  Deposit 
and  Secui'ity  Trust  Company,  in  which  he  asks  in  reference  to  a  re- 
(•eiver  being  ai)pointed,  and  proceeds  to  argue  the  legality  of  such  an 
appointment  being  filled  by  an  oflicer  of  a  trust  company. 

[Thayer,  Kankiu  &.  Coldieu,  attorneys  at  law,  Atlantic  building,  Washington,  D.  C.    K.  H.  Thayer. 

J.  M.  Rankin.    i\  G.  Coldren.] 

March  27,  1891. 

Sir:  Referring  to  my  personal  interview  with  you  on  the  25th  instant  in  rehition 
to  the  possible  appointment  of  a  receiver  for  the  Keystone  National  Bank,  of  Phila- 
delphia, and  to  the  desire  of  the  City  Trust,  Safe  Deposit  and  Surety  Co.,  of  Pliila- 
<ielphia,'  to  be  selected  for  such  appointment,  if  made,  I  have  now  the  honor,  in  be- 
half of  said  company,  to  make  formal  application  for  said  appointment. 

It  is  understood  by  the  company  that  it  is  not  yet  determined  that  a  receiver  will 
be  appointed  in  this  case,  and  the  application  is  made  in  anticipation  of  the  possi- 
bility of  such  ai)pointment. 

I  am  aware  that  the  selection  of  a  corporation  as  receiver  for  a  national  bank 
would  be  a  novel  proceeding,  but  I  am  not  aware  that  there  is  any  statutory  objec- 
tion to  such  selection. 

The  legal  competency  of  corporations  duly  chartered  for  the  purpose  of  perform- 
ing such  functions  is  not,  I  believe,  seriously  questioned;  in  fact,  has  the  support  of 
controlling  judicial  decisions. 

I  will  not  at  this  time  submit  any  argumentative  matter  in  favor  pf  corporations 
acting  in  fiduciary  (lapacities,  but  will  content  myself  with  saying  that  it  is  almost 
universal  now,  in  Philadelphia,  in  matters  of  large  estates,  to  commit  them  to  the 
care  of  corporations,  as  such  corporations  have  facilities  that  are  manifestly  not 
possessed  hy  individuals. 

I  recognize  the  fact  that  the  present  application  raises  three  important  and  ma- 
terial questions,  viz : 

First.  Is  it  competent  for  you,  under  the  national  banking  law,  to  select  and  ap- 
point an  "artificial"  person  to  act  as  receiver? 

Second.  If  the  law  permits  such  selection,  what  advantages  or  disadvantages  would 
attend  such  appointment?  • 

Third.  Is  The  City  Trust,  Safe  Deposit  and  Surety  Co.,  of  Philadelphia,  under  its 
cliarter  powers,  duly  authorized  to  perform  such  functions  and  does  its  organization 
and  its  financial  standing  commend  it  as  a  suitable  and  safe  person  to  whom  the 
Hon.  Comptroller  may  entrust  such  duties? 

On  the  third  question,  I  would  express  the  strongest  confidences  that  the  integrity 
of  the  charter  powers  of  this  company  to  perform  such  duties  can  be  established  be- 
yond any  controversy,  and  am  equally  confident  that  the  standing  and  fitness  of  this 
corporation  will  be  easily  established  to  your  entire  satisfaction. 

Ample  showing  will  be  made  on  these  points  whenever  you  may  desire  to  have  it 
submitted. 

In  this  connection  I  beg  to  say  that  the  company  has  already  made  a  full  exhibit 
of  its  charter  powers  before  the  Hon.  Solicitor  of  the  Treasury  in  connection  with 
another  class  of  business. 
Very  respectfully, 

RuFUS  H.  Thayer, 
For  The  City  Trttst,  Safe  Deposit  and  Surety  Co.,  of  Philadelphia. 

Hon.  Edward  S.  Lacey, 

Comptroller  of  the  Currency, 


m 


160 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF    NATIONAL   BANKS. 


161 


■  'A 


hi 


[Telegram.] 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  March  28,  1891. 
C.  J.  Stoddard, 

(Care,  Keystone  National  Bank,  Philadelphia,  Pa.) 
Call  at  my  house  to-morrow  afternoon  at  two  o'clock. 

E.  S.  Lacey, 

Comptroller, 


Philadelphia,  March  £8, 1891. 

Sir  :  As  the  report  of  the  attorneys  for  the  hank  on  the  condition  of  the  property 
at  Sea  Girt  and  8i)rin^  Lake,  New  Jersey,  which  has  heen  received  by  me,  intimates 
a  question  whether  a  valuable  portion  thereof  is  not  virtually  in  the  possession  of  a 
thir<l  party  by  reason  of  a  purchase  under  mortgage  for  a  certain  tract  at  Sea  Girt  of 
large  value,  and  as  the  transfer  of  the  property  at  these  places  to  the  bank  for  the 
debt  of  the  Lucas  estate  in  terms  covers  the  entire  property  with  slight  exceptions, 
I  would  ask  authority  to  continue  the  attorneys  in  further  investigating  the  question 
with  instructions  to  obtain  actual  and  undoubted  possession  of  the  same  in  a  tinal 
and  conclusive  settlement,  and  also  to  settle  finally  any  other  rights  involved. 
Please  telegraph  me  such  authority  if  you  concur  in  the  request.  The  att'y  for  the  Lucas 
estate  informed  me  to-day  that  the  conditional  acceptance  by  the  bank  of  an  oti'er 
through  him  for  $350,000  for  the  tract  at  Sea  Girt,  less  the  part  sold  to  the  State  of 
New  Jersey  for  $70,000  from  a  syndicate  in  New  York,  had  been  referred  to  their 
principals  in  London  for  ai)proval.  Unless  otherwise  ordered  I  shall,  on  the  31st  inst., 
discharge  and  pay  otf  sucli  of  the  present  force  of  the  bank  as  it  may  not  be  necessary 
to  retain,  and  notify  the  others  that  their  services  will  be  retained  only  for  a  time. 

I  shall  also,  unless  ordered  to  the  contrary,  pay  the  rent  for  the  building  for  this 
month.  Any  delay  in  doing  so  might  deprive  the  bank  of  its  lease  at  once,  thus 
working  injury  to  any  plans  for  restoring  the  bank  or  putting  it  in  other  hands. 
"The  Central  Trust  Co.,"  occupying  rooms  on  the  same  floor,  is  the  agent  for  the'" 
bank  in  collecting  rentals  from  the  tenants  and  now  has  $2,700  in  hand  from  that 
source.  This  comi)auy  is  a  creditor  in  the  Keystone  for  $20,000.  I  shall  make  de- 
mand for  this  rent  money  and,  if  delivered,  shall  apply  a  part  of  it  to  paying  the 
rent  for  the  bank,  which  is  $2,000  monthly.  The  bank  has  a  lease  for  ten  years  on 
the  whole  building,  which  now,  from  all  rooms,  brings  some  $34,000  yearly.  If  the 
trust  company  does  not  turn  over  the  money  referred  to  I  shall  pay  the  rent  from 
funds  in  the  bank,  of  course  subject  to  your  .approval,  as  stated. 

To-day  the  att'y  for  the  Lucas  estate  handed  to  me  2,r)16  shares  of  the  stock  of 
the  bank  for  cancellation.  This  I  receipted  for  to  him.  This  disposes  of  the  shares 
reported  as  "an  overissue."  All  were  closely  compared  with  the  stubs  of  the  certif- 
icate book  by  Mr.  Stoddjird  and  verified  by  him. 

I  expect,  on  tlie  3()th  inst..  to  obtain  a  final  decision  from  outside  parties  who  have 
been  considering  a  proi»o8ition  for  rehabilitation  of  the  bank,  but  have  little  expec- 
tation that  they  will  undertake  it,  and,  failing  that,  I  shall  again  urge  upon  the 
stockholders  to  vote  to  reduce  the  capital  to  $200,000,  and  at  once  increase  it  by  new 
stock  of  $300,000,  but  they  seem  so  demoralized  that  I  fear  it  will  miscarry,  especiwlly, 
since  the  failure  this  wrek  of  the  "Crump  Bros.,"  of  the  Colonnade  Hotel  for  $2G8,{MX), 
leaves  the  bank  in  the  lunth  by  some  $60,000,  paper  and  overdrafts,  with,  at  present 
<mtlook,  not  more  than  $20,000,  though  if  individual  credits  of  nearly  the  latter 
amount  in  the  bank  can  be  applied,  the  loss  would  be  correspondingly  lessened. 

On  Monday  I  expect  to  have  perfected  lists  of  all  discounted  paper,  item  by  item, 
and  of  all  other  assets,  as  well  as  complete  lists  of  all  liabilities,  specifying  each. 

Mr.  Stoddard  went  home  this  afternoon.     He  has  been  of  the  greatest  use  here, 
and  his  intimate  acquaintance  with  the  disposition  of  the  many  questions  constantly 
arising  has  been  indispensable.     I  wish  I  could  have  his  help  for  a  day  or  two  more. 
Please  allow  me  to  thank  you  for  so  kindly  permitting  him  to  assist  me. 
Very  respectfully, 

W.  P.  Drew, 
National  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


[Telegram.  J 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  March  30,  1891. 
W.  P.  Drew, 

Examiner  in  charge  Keystone  National  Bank,  Philadelphia,  Pa.: 
Letter  twenty-eighth  received.     May  continue  services  attorneys  to  quiet  title 
Sea  Girt  property,  compensation  subject  to  approval  Comptroller  and  Solicitor. 

E.  S.  Lacey, 

Comptroller, 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  SO,  1891. 

Sir  :  Your  letter  of  the  28th  inst.  is  received,  and  in  reply  to  your  several  re- 
quests you  are  advised  that — 

1.  The  services  of  present  attorneys  may  be  continued  in  further  investigation  of 
the  title  to  the  Sea  Girt  and  Spring  Lake  property,  with  the  understanding  that 
compensation  in  full  shall  be  accepted  in  such  amounts  as  shall  be  determined  by 
the  Comptroller  of  the  Currency  and  the  Solicitor  of  the  Treasury. 

2.  You  are  hereby  authorized  to  pay  the  rent  of  the  bank  building  for  the  current 
month  out  of  trust  funds  in  your  hands,  and  to  demand  possession  of  rent  collec- 
tions made  by  Central  Trust  Company.  That  company,  in  making  such  collections, 
is  acting  as  voluntary  agent  for  the  Keystone  National  Bank  as  a  trust,  and  amounts 
can  not  be  applied  to  reduce  its  claim  as  a  creditor  of  the  Keystone  National  Bank. 

3.  Amounts  due  the  clerical  force  of  the  bank  up  to  April  1st  may  be  paid,  further 
services  being  dispensed  with  according  to  your  best  judgment.  If  any  of  the  force 
are  indebted  to  the  bank,  amounts  due  for  services  should  first  be  applied  in  liqui- 
dation of  any  indebtedness  or  liability  to  the  bank. 

Very  respectfully, 

E.  S. 


Mr.  Wm.  p.  Drew, 

National  Bank  Examiner, 

In  charge  Keystone  National  Bank,  Philadelphia,  Pa. 


Lacey, 

Comptroller. 


By  the  Chairman  : 

Q.  Did  Mr.  Stx)ddard  return  to  the  bank  after  that  letter  was  writ- 
ten?— A.  No,  sir. 

Q.  I  think  something  was  said  about  his  having  made  a  list  from  the 
stock  books?— A.  He  said,  under  date  of  March  26,  that  he  had  drawn 
a  list  of  the  outstanding  stock  from  the  stubs. 

Q.  Was  that  list  ever  delivered  to  you  or  put  in  your  office? A.  I 

can  not  answer  that  question.  I  think  we  have  a  list,  however,  of  the 
shareholders  as  it  stood  at  that  time. 

Mr.  Stoddard.  That  is  not  from  me. 

Q.  I  thought  you  had  a  consultation  about  it?— A.  Undoubtedly  we 

Q.  Did  Mr.  Stoddard  make  a  report? — A.  We  had  a  conversation, 
but  it  referred  to  nothing  except  what  had  been  covered  by  correspond^ 
ence.    He  reported  nothing  about  this,  so  far  as  I  remember. 

Q.  And  that  list  of  stockholders  was  not  submitted  to  vou  bv  Mr 
Stoddard?— A.  No,  sir.  ^         ^ 

Q.  That  was  left  at  the  bank?— A.  He  simply  came  in  and  we  had  a 
brief  conversation  in  regard  to  the  legal  questions  as  to  the  items  col- 
lected after  thit  bank  closed. 

The  next  communication  seems  to  have  been  one  from  Judge  Gilker- 
son,  Second  Comptroller  of  the  Treasury,  dated  March  30,  1891. 

Q.  Is  Mr.  Gilkerson  a  resident  of  Philadelphia?— A.  Mr.  Gilkerson 
IS  a  resident  of  Pennsylvania,  but  Hves  in  scmie  town  about  3(»  miles 
trom  Philadelphia.     He  was  at  Philadelphia  when  he  wrote  this  letter. 


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162  INVESTIGA.TION    OF    NATIONAL    BANKS. 

United  Statks  Internal  Revenue, 

CoLLECToit's  Office, Distkict,  Pennsylvania, 

Phila.,  Mch.  30,  1891.^ 

My  DevkCompthollek:  Some  friends  of  mine  who  are  interested  in  the  Kev. 
stone  J^auk  of  this  city,  have  hecome  uneasy  for  fear  you  will  insist  upon  ch)8ing; 
out  said  bank  bi^fore  they  have  time  to  fully  eoniplete  their  plan  of  reorganization. 
I  am  advised  that  said  bank  can  go  on,  provided  the  gentlemen  now  trying  to  arrange 
matters  have  the  necessary  time.  Will  you  do  me  the  favor  to  give  all  the  time 
possible  and  not  press  the  questicm  of  a  receiver  for  at  least  10  days?  I  have  no  doubt 
l)ut  that  by  the  end  of  tluit  period  the  bank  can  go.  I  will  see  you  on  Friday  upon 
my  retuin  to  Washington  and  tell  you  more  about  it. 

Y'rs  truly,  «   „   ^ 

B.  F.  GlLKESON. 

Hon.  E.  S.  Lacey. 


Philadelphia,  March  30,  1S91. 

Sir:  The  i)arties  who  for  the  last  few  days  have  had  under  advisement  the  resusci- 
tation of  No.  2931,  and  who  Avere  expected  to  report  their  conchisions  to-day,  will 
not  be  able  to  do  so  until  tomorrow.  , 

This  delay  may  not  be  disc«>uraging,  but  1  am  inclined  to  think  it  is  unpromising. 
Some  talk  has  been  had  to-day  with  reference  to  consolidating  another  bank  with 
2931,  but  unless  within  a  few  days  some  of  these  propositions  take  full  form,  I  see  no 
other  way  out  of  the  dilemma  than  a  receivership. 

Your  telegram  so  authorizing  was  received  to-day,  and  I  have  accordingly  directed 
the  attys.  to  continue  in  the  work  of  perfecting  title,  etc.,  with  respect  to  the  sea- 
shore property.     1  will  at  once  advise  you  of  any  change  in  the  situation. 

Very  respectfully,  ^ir  t»  t^ 

W.  P.  Dkew, 

NaU  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency y  Washington,  D.  C, 

By  the  Chairman  : 

Q.  (After  hearing  reading  of  letter  of  March  30,  1891,  giving  the 
number  of  the  bank  as  2991.)  What  was  the  correct  number  of  the 
bank?— A.  2291. 

Witness  then  read  letters  and  telegram  as  follows; 

[Telegram.] 

March  31,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C. 

Meetino-  to-day  of  majority  of  stock  to  consider  reduction  to  two  hundred  and  in- 
crease three  hundred  thousand  new  stock.  If  decided  on,  meeting  of  all  stock- 
holders to-morrow  morning.  _ 

W.  P.  Drew, 

National  Bank  Examiner. 


Philadelphia,  March  31,  1891. 

Sir:  An  informal  meeting  of  some  ten  stockholders  of  the  Keystone  National  Bank, 
representing  more  than  one-half  of  the  whole  stock,  was  held  this  afternoon,  at 
which  it  wa^  decided  to  reduce  the  capital  to  $200,000,  and  to  otter  for  sale  $400,000 
new  stock,  to  be  subscribed  for  at  the  bank  within  the  next  two  days.  If  sufficient 
enc<mragement  is  received  the  matters  will  be  then  laid  before  a  meeting  of  the 
stockholders  and  submitted  to  them.  This  step  indicates  that  the  stockholders  have 
awaked  to  the  real  necessities  of  the  case.  Couunittees  will  go  out  to-morrow,  and 
there  seems  to  be  some  good  reason  for  believing  that  the  stock  will  be  secured. 
Several  depositors  will  take  stock,  and  the  new  stockholders  are  to  have  full  control 
of  the  bank.  Such  is  the  plan,  aiul  it  will  be  made  public  in  the  morning  jiapers. 
While  the  entire  amount  desired  may  be  somewhat  lon^fer  in  coming,  yet  the  meeting 
thought  that  in  the  two  days  decided  on,  sufficient  evidence  will  be  shown  to  prove 
whether  the  |)lan  is  likely  to  be  successful  or  not.  If  it  should  fail  to  appear  feas- 
ible, there  would  seem  to  be  no  alternative  but  a  receiver. 

Very  respectfully, 

■^       ^  W.  P.  Drew, 

Nat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


INVESTIGATION    OF    NATIONAL    BANKS. 


[John  R.  Read.    Silas  W.  Pettit.    H.  B.  Gill.] 


163 


Law  Offices  of  Read  &  Pettit, 
518  Walnut  street,  Philadelphia,  March  31,  1891. 

Dear  Sir:  At  the  invitation  of  Col.  Drew  I  attended  an  informal  meeting  of  some 
of  the  stockholders  of  the  Keystone  National  Bank  held  this  afternoon.  It  was  de- 
termined to  at  once  take  steps  looking  to  the  reorganization  of  the  bank,  and  with 
that  end  a  subscription  paper  was  prepared,  inviting  subscriptions  to  the  amount  of 
$400,000,  it  being  the  intention  to  reduce  the  present  capital  to  $200  000,  and  subse- 
quently thereafter  to  increase  it  to  $600,000.  The  subscription  will  be  started  to- 
morrow, and  I  have  no  doubt  that  a  number  of  the  stockholders  will  participate  in 
the  new  organization  if  ett'ected. 

1  do  not  think  that  any  public  interest  will  suffer  by  giving  ih^  parties  concerned 
an  opportunity  to  reorganize.  The  success  of  this  effort  I  think  can  be  ascertained 
within  a  week. 

Yours,  very  truly, 

JoHX  R.  Read, 

TJ.  S.  Attorney, 
Hon.  Edward  S.  Lacey, 

Comptroller  of  the  Currency, 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  March  31,  1891. 
Dear  Sir  :  I  have  very  carefully  read  your  communication  of  the  26th  instant, 
and  note  what  you  say  in  reference  to  the  various  propositions  looking  to  the  re- 
habilitation of  the  Keystone  National  Bank. 

1  desire  to  do  everything  possible  to  assist  in  bringing  about  this  very  desirable 
end,  but  I  am  admonished  that  I  cannot  much  longer  delay  the  appointment  of  a 
receiver.  There  are  many  questions  arising  which  the  examiner  cannot  undertake 
to  decide,  and  the  interests  of  creditors  may  be  jeopardized.  Unless  some  propo- 
sition from  responsible  parties  is  made  to  nie  by  Thursday  evening  of  this  week  I 
shall  feel  compelled  to  make  an  appointment  of  a  receiver. 
Please  commnuicate  this  to  the  parties  interested. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 
Mr.  William  P.  Drew, 

Examiner  in  charge  Keystone  National  Bank,  Philadelphia,  Pa. 
P.  S. — I  need  Mr.  Stoddard  here  quite  badly — for  the  present,  at  least. 


[Fersopal.] 


Treasury  Departmrnt, 
Office  of  Comptroller  of  the  Currency, 
^  Washington  D.  C,  March  31,  1891. 

My  Dear  Sir  :  Your  valued  favor  of  the  24th  instant,  came  to  hand  by  due  course 
of  mail. 

Unless  some  more  definite  proposition,  made  by  reliable  parties,  reaches  me  by 
Thursday  evening  of  this  week,  I  shall  feel  called  upon  to  appoint  a  receiver  for 
the  Keystone  National  Bank. 

I  cannot,  of  course,  indicate  who  will  receive  the  appointment,  but  desire  to  say 
that  if  you  will  suggest  the  name  and  address  of  the  gentleman  you  have  in  mind, 
1  will  give  the  matter  my  best  attention. 

Thanking  you  for  the  interest  you  have  taken  in  the  matter,  I  am, 
Very  sincerly, 

E.  S.  Lacey, 

Comptroller, 
Mr.  B.  B.  Comegys, 

Care  Philadelphia  National  Bank,  Philadelphia,  Pa. 


I 


^Kn 


164 


INVESTIGATION   OF   NATIONAL    BANKS. 


To  the  hoiioiahlo  Edw.  S.  La("ey,  ^ 

(omjft roller  of  the  Currency,    IVashijifftov,  D.  C: 

We,  the  un<lersi«:;iied,  being  fully  acquainted  with  the  uianagcnuMit  and  financial 
condition  of  The  Citif  Truni,  Safe  Deposit,  and  Surety  Compauy  of  Philadelphia,  do 
hereby  respertfully  ivconimt'nd  the  apjioiutnient  of  the  said  company  as  receiver  of 
tlie  Keystone  Salioiinl  Hank  of  Philadelphia.  We  kno\v  that  the  8ai<l  Company  is  au- 
thorized by  its  cliarter  to  act  in  the  capacity  of  receiver  and  believe,  from  our  knowl- 
edge of  its  affairs,  that  it  is  well  fitted  for  the  appointment. 
Dated  at  Philadelphia,  March  thirty-first,  1891. 

John  Fikld, 
B.  F.  HuGiiKji, 
Charles  S.  Lincoln, 
Sam  TEL  Bell, 
Edwin  S.  Stewart. 


[The  ritv  Trust,  Safe  D<*iw»it,  and  Sin-ety  Co.  of  Philadolnliia,  No.  927  Cheatnut  street.  Full-i)aid  cap- 
ital, $r)()0,0()l».  Tt'h'plioiie.  Cbarle.s  M.  Swain,  prt'sidiMit;  Michael  P.  Heraty,  vice-prcs.  and  cli.  finance 
com. ;  James  F.  Lynd,  Hcc'y  and  trea«. ;  Joseph  A.  Sinn,  trust  ofticcr ;  Lincoln  L.  Eyre,  solicitor;  Wm. 
\v.  Couway,  real-estaite  otHcer.] 


Philadelphia, 


18—. 


John  Field  is  postmaster, 
B.  F.  Hughes  is  assistant  postmaster. 
Chas.  S.  Ixincolu,  «-lerk  U.  S.  district  court. 
Samuel  Bell,  clerk  U.  S.  circuit  court. 
Edwin  S.  Stuart,  mayor-elect  of  Phila. 


At  the  Philadelphia  National  Bank, 

Philadelphia,  April  Jst,  1891. 

Dear  Sir:  Yours  of  yesterday  is  received.     The  name  I  submit  as  a  proper  person 
for  receivt'r  of  the  Keystone  National  Bank,  shouhl  it  be  necessary  to  make  such  an 
appointment,  is  Mr.  Charles  W.  Sparhawk,  400  Chestnut,  this  city. 
I  am  vours,  very  truly, 

B.  B.  CO.MEGYS. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Curreney,  Washington,  D.  C, 


PuiLADKLPinA.  Apl  1,  1S91. 

Sir:  Your  letter  of  the  olst  nit.,  referring  to  mine  of  the  2Kfh  ult.  and  limiting 
the  time  for  rehabilitation  of  the  Keystone  National  Jiank  to  the  close  of  Thuis<lay, 
the  2nd  inst.,  was  received  by  me  this  morning,  and  its  contents  at  «mce  communi- 
cated to  those  interested. 

As  only  yesterday  afteriio(»u  the  stockhohlers  instituted  activ*'  measures  to  secure 
funds  for  the  impairment  of  capital,  as  I  informed  you  by  letter  last  evening,  the 
time  allotted  seems  very  short.  This  morning,  after  receipt  (»f  your  letter,  connnit- 
tees  were  dispatched  to  secure,  if  possible,  the  necessary  pledges,  and  reports  made 
to-night  show  i)ledges,  mainly  verbal,  for  $150,000  from  stockholders  and  others  not 
interested  in  the  bank,  and  nearly  $50,000  voluntarily  proffered  by  depositors.  Many 
of  these  have  called  on  me  to-day  and  expressed  a  willingness  to  have  a  part  of  their 
deposits  api>lied  in  the  way  of  new  stock,  and  the  ]»roposif  ion  to  do  so  has  been  ma<lc 
to  all.  I  think  that  $100.0fW)  will  no  doubt  be  tendered  in  that  way.  The  efforts  of 
to-day  to  secur*'  from  resp<msible  persons  sub.scriptifms  for  new  cajjital  will  be  ear- 
nestly continued  to-morrow,  but  I  fear  that  not  all  may  be  raised  by  the  time  fixed, 
and  after  the  wlu»le  amount  shall  have  been  sub.scribe«l  .sonu*  time  nni.st  be  given  to 
satisfy  tlie  parties  that  the  assets  and  liabilities  are  mainly  such  :is  rey>resented. 

1  am  willing  1o  undertake  any  resjumsibility  you  may  ]dease  to  put  u])on  me,  and 
will  faithfully  and  fully  carry  out  any  orders  which  would  in  the  interim  ccmie  to  a 
receiver. 

The  internal  economy  of  the  bank  is  in  good  shape,  and  the  receiver,  should  he 
come,  Avill  so  find  it.     I  think  1  can  refer  confidently  to  Mr.  Stoddard  in  this  asser 
tion. 


INVESTIGATION    O^    NATIONAL    BANKS. 


1G5 


If  you  still  thinic  that  you  can  give  no  longer  time  tlian  the  close  of  Thursday 
next,  jdeas-e  so  teh'grapii  me  on  receipt  of  this,  that,  in  the  event  of  ]>o.ssible  failure 
to  secure  the  needed  funds  by  that  time,  lean  i>repare  the  wav  for  the  receiver's 
arrival. 

\'ery  re.s]>ectfully, 

W.  P.  Drew, 

Xat.  Bunk  Examiner. 
Hon.  E.  s.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 

P.  S.— Mr.  McFadden  headed  the  list  with  25,000.  He  has  already  $35,000  stock, 
and  IS  als<»  locked  up  in  the  bank.  Many  depositors  have  suggested  a  meeting  to 
help  the  suscriptions,  and  all  are  evidently  hopeful  of  restoration  of  the  bank.  Mr. 
Marsh,  of  his  own  motion  and  ex]»ense,  has  sent  the  inclosed  circular  and  card  to  all. 

Hon.  .1.  H.  Read,  U.  S.  Dist.  Atty.,  attended  the  meeting  vesterdav,  and  .said  he 
would  write  to  you  on  the  situation. 


Keystone  National  Bank, 
1326  and  1328  Chestnut  Street,  opposite  the  U.  S.  Mint, 

Philadelphia,  April  1,  1891. 
De.ar  Sir:  At  an  informal  uieeting  of  the  majority  of  the  stockholders,  held  March 
31st,  it  w  as  thought  that  the  best  plan  to  resume  business  and  relieve  the  depositors 
would  be  to  deenase  the  capital  stock  to  $200,000  and  then  to  increase  it,  by  sellin«»- 
new  stock,  to  $600,(100,  with  a  consequent  change  of  management.  This  bein«rdone' 
the  Comptroller  of  the  Currency  will  allow  the  bank  to  begin  business.  '^  ' 

It  was  thojight  that  some  considerable  part  of  the  stock  would  be  subscribed  for 
by  the  i)resent  dejjositors. 

Should  you  feel  willing  to  help  in  this  plan  and  subscribe  some  part  of  your  pres- 
ent balance,  you  would,  1  think,  make  a  good  investment  and  aid  very  much  in  lib- 
crating  the  locked-up  balances. 

If  you  ran  not  conveniently  call,  and  desire  to  subscribe,  vour  acceptance  on  in- 
closed car«l  will  reieive  prompt  attention. 
Very  truly,  yours, 

G.  W.  Marsh. 


Dear  Sir 


Saginaw,  East  Side,  Michigan,  April  2,  1891. 
I  notice  that  there  is  a  failure  of  the  Keystone  National  Biink,  of  Phila- 


delphia,  and  that  a  receiver  is  1  ik<'ly  to  be  a ppointed.  It  has  occuned  to  m'e  that  vou 
can  perhap.s  do  sonict  liing  for  my  brother,  K.  A.,  for  that  ])osition.  Secretary  Foster 
IS  an  old  friend  of  his,  and  I  would  name  him  as  a  reference  for  ray  brother's  com- 
petency. It  will  ]»lease  me  very  much  if  you  shall  find  it  possible  to  aid  him  in  tliis 
matter. 

1  nturn  to  New  York  City  next  week.     Many  thanks  for  the  bundle  of  documents 
you  sent  me. 

Yours  most  truly, 

u         ,,    o    T  R.  G.  HORR. 

Hon.  h.  S.  Lacey, 

Comptroller  of  the^  Currency,  Washington,  D.  C. 


[Telegram.] 

Treasury  Department, 

1T„    ,,  „    r  ^^a8hington,D.  C,  Apl  2nd,  1891. 

J  Ion.  Edward  S.  Lacey, 

Comptroller: 
Mr.  Marsh,  of  the  Keystone  Bank,  came  down  last  night  to  say  that  it  Avas  reported 
.^ou  intend  to  ap])oint  a  receiver  of  the  Keystone  Bank  unless  something  more  defi- 
nite was  done  to-day.     I  believe  nothing  would  sufier  from  giving  them  twentv-foiir 
"ours  longer,  at  the  *^nd  of  which  they  may  i)ut  on  paper  something  more  definite  to 
je  presented  to  you.     From  what  he  says  they  are  getting  along  prettv  well  in  secur- 
1  ig  suhscriptK.ns  to  the  new  stock.     I  would  recommend  appointment  of  receiver  be 
ueierred,  say  one  day,  until  he  has  an  opportunity  to  state  something  mort^  definite. 

John  Wanamaker. 


ii: 


m 


i; 


166 


INVESTIGATION    OF  NATIONAL   BANKS. 


INVESTIGATION    OF    NATIONAL   BANKS. 


167 


m 


PlIILADKLPHIA,  Ap'l  2,  1S91. 

Sir:  Kepresentatives  of  the  parties  contemplating  taking  the  new  stock  of  the 
Keystone  National  Bank  have  examined  the  assets  and  liabilities  of  the  bank  this 
afternoon,  and  will  to-morrow  report  their  decision  as  to  whether  they  will  make 
the  investnuMit.  The  soundness  of  some  of  the  bills  discounted  and  the  valuation 
to  be  put  upon  the  seaMhore  property  are  the  uncertain  elements  in  the  calculation. 
Meanwhile  during  the  day  many  depositors  have  agreed  to  take  stock  for  a  part  of 
their  a'c's. 

I  will  telegraph  results  as  soon  as  reached.    The  friends  of  the  bank  are  making 
every  effort  to  save  it  from  a  receiver,  but  I  fear  in  vain. 
I  can  turn  over  the  trust  in  an  hour's  time  if  necessary. 
Yours  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Iton.  E.  S.  Lacey. 

Comptroller  of  the  Currency,   Washington,  D,  C, 


I  hereby  agree  to  subscribe  for 


National  Bank,  to  be  paid  for  out  of  my  present  balance. 


Philadelphia,  April  2nd,  1891. 
shares  of  capital  stock  of  the  Keystone 


To 


Depositor, 


Treasury  Department, 
Office  of  Comi»tkollkr  of  the  Currency, 

Washington,  D.  C,  April  2,  1891. 
Dear  Sir  :  I  am  in  receipt  of  your  favor  of  the  31st  ultimo,  and  note  that  it  is 
proposed  by  certain  stockholders  that  the  capital  stock  of  the  Keystone  National 
Bank  be  reduced  $200,000,  and  thereafter  increased  in  the  sum  of  $400,000,  the  latter 
stock  being  subscribed  for  by  parties  who  will  pay  the  amount  in  cash. 

This  would  proceed  upon  the  hypothesis  that  the. present  assets  of  the  bank  are 
worth  $200,000,  after  providing  for  all  liabilities.  I  would  suggest  that  it  might  be 
well  for  those  hohling  the  $200,000  of  old  stock  to  deposit  the  same  in  escrow  with 
some  suitable  person,  accompanied  by  an  agreement  that  in  ease  it  should  be  found 
ultimately  that  the  assets  were  not  sufficient  to  meet  the  present  liabilities  of  the 
bank  and  provide  for  $200,000  of  stock,  that  any  deficit  should  be  made  good  by  a 
surrender  of  a  like  amount  of  the  old  shares,  to  be  reissued  and  sold  to  new  sub- 
scribers for  the  benefit  of  the  bank,  in  order  to  make  good  the  deficit  above  re- 
ferred to. 

I  know  of  no  legal  objection  to  this  an-angement,  with  the  proviso,  of  course,  that 
it  should  appear  upon  the  books  of  the  bank  that  the  owners  of  this  st«Mk  are  indi- 
vidually liable,  under  existing  provisions  of  law. 

This  arrangement  wouhl  facilitate  tlie  proeuring  of  new  subscriptions,  I  presume, 
for  the  reason  that  there  is  som<*  uncertainty  as  to  tlie  value  of  the  present  assets  of 
the  bank,  and  as  it  is  not  probable  that  those  who  are  now  shareholders  desire  more 
than  their  just  proportion  of  the  new  stork,  ejjuity  would  indicate  that  the  arrange- 
ment suggested  by  me  should  be  carried  out  for  the  purpose  of  protecting  new  share- 
holders who  ]>ay  par  in  cash  for  their  shares. 

I  wish  you  would  call  the  attention  of  the  U.  S.  attorney.  Read  to  this  matter,  and 
any  others  who  you  think  would  profit  by  the  suggestion. 
Very  respectfully, 

£.  S.  Lacky, 

Comptroller. 
Mr.  W.  P.  Drew, 

National  Bank  Examiner, 

In  charge  Keifstone  National  Bank,  Philadelphia,  Pa, 


[S.  S.  Warner,  president.    R.  A.  Horr,  cashier.    W.  Cushion,  jr.,  asst  cashier.] 

2826. 

The  First  National  Bank  of  Wellington,  Ohio, 

April  3d,  1891. 
Sir:  If  the  Keystone   National   Bank  of  Philadelphia,  Penna.,  shall  go  into  the 
hands  of  a  receiver  I  would  like  the  position,  provided  you  consider   it  the  right 
thing  to  do. 

Hon.  Charles  Foster,  Sec'y  of  the  Treasury,  is  well  acquainted  with  me.     I  am  quite 
willing  you  shall  inquire  of  him  as  to  my  qualifications  for  the  place.    I  have  not 
nor  shall  I  write  him  about  it.    Trusting  that  you  will  not  consider  this  application 
presumptuous,  I  am 
Your  ob't  SeV't, 

K.  A.  Horr. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

^    _   _  Washington,  April  S,  1891. 

W.  P.  Drew,  ^      i    jt       > 

Examiner  in  Charge  Keystone  National  Bank,  Philadelphia,  Pa.: 
Date  of  receiver's  appointment  will  depend  npon  progress  shown  in  placing  in- 
crease of  stock.    Telegraph  me  e»ch  morning  total  amount  of  new  stock  subscr?bed. 

E.  S.  Lacey, 

Comptroller. 


Philadelphia,  April  3, 1891. 

Sir  :  Your  letter  of  the  2nd  inst.  was  duly  received  and  its  contents  communi- 
cated to  those  interested,  all  of  whom  commended  your  suggestions  in  regard  to 
pla«;ing  the  $200,000  of  the  old  stock  in  escrow,  and  appreciated  this  expression  of 
your  interest  in  their  endeavors  to  place  the  bank  again  on  its  feet.  U.  S. .  Diet. 
Atty.  Read  expresses  his  fiill  concurrence  in  your  views,  and  so  endorsed  your  letter 
to  be  shown  to  those  contemplating  subscribing  to  the  new  stock. 

The  parties  who  yesterday  examined  the  assets  with  the  purpose  if  those  should 
in  their  opinion,  be  sufficient  in  value,  to  subscribe  the  necessary  new  capital  re- 
ported unfavorably  and  withdrew.  ' 

The  total  of  pledges  at  close  of  business  to-day  is  $238,000,  including  depositors' 
pledges,  and  tomorrow  more  is  confidently  expected.  Parties  here  who  have  sub- 
scribed more  than  $100,000  to  a  proposed  "Broad  Street  National  Bank"  are  this 
evening  in  conference  with  the  bank  people  on  a  proposition  made  by  the  former  to 
turn  this  amount  into  the  new  subscription  for  the  Keystone.  Result  of  this  will  be 
known  tomorrow,  probably.  Some  strong  people  will  be  approached  tomorrow 
who,  it  IS  understood,  are  seeking  investment  in  this  direction  with  a  viewof  assum- 
mg  the  control. 

What  the  outcome  of  all  this  will  be  it  is  impossible  to  say,  but  it  is  clearlv  ap- 
parent that  the  stockholders  and  their  friends  do  not  entertain  the  idea  of  ffivimr 
up  until  every  expedient  shall  be  fully  tried. 

All  parties  interested  say  that  they  appreciate  the  difficulties  under  which  your 
office  may  labor  in  granting  more  time,  and  that  they  will  endeavor  to  secure  your 
good  opinion,  even  if  they  fail,  I  have  no  doubt.  I  will  telegraph  you  tomorrow  as 
requested. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C. 


t 


1G8 


INVESTIGATION    OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


169 


Treasury  Depautmknt, 

Office  of  the  Comptroller  of  the  Currency, 

Washington,  April  4,  1891. 
W.  P.  Drew, 

Examiner  in  Charge  Keystone  National  Bank,  Philadelphia,  Pa.: 

In  telegrapliin«5  ^^  give  aggregate  subscriptions  for  increase  and  not  dally  addi- 
tions. 

E.  S.  Lacey, 

Comptroller. 


,  [Telegram.] 

April  4,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Six  thousand  this  morning  from  depositors.  Committee  from  proposed  Broad 
St.  National  pledge  fifty  thousand  conditional  on  representation  in  board  and  in- 
spection of  assets.     Will  telegraph  later  in  day. 

W.  P.  Drew, 
National  Bank  Examiner 


[Telegram.] 

Hon.  E.  S.  Lacey. 
Total  amount  two  hundred  fifty-eight  thousand. 


April  4,  1891. 


W.  P.  Drew, 

Nat.  Bank  Examiner. 


Philadelphia,  Apl.  4, 1891. 


ferred  decision  as  to  subscribing  $50,000  to  the  new  stock  of  the  latter  until  Monday. 
A  movement  has  been  started  to-day  to  secure  for  the  presidency  of  the  Keystone, 
rehabilitated,  Director  Wagner,  of  the  city  department  of  public  works,  whose 
term  of  office  expires  to-day,  and  he  has  taken  until  Monday  to  give  his  decision. 
Should  that  be  favorable,  it  would  give  great  support  to  the  movement,  as  he  is  a 
strong  mun  with  a  very  strong  following,  and  possesses  uncommon  qualifications  for 
the  position.  The  question  then  would  not  be  the  ability  to  procure  the  necessary 
funds,  but  the  value  of  the  assets  and  franchise.  I  am  inclined  to  believe  that  he 
will  accept. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


Statement  of  the  City  Trust,  Safe  Deposit  and  Surety  Company,  of  Philadelphia. 

On  the  first  day  of  January,  1891,  the  assets  and  liabilities  of  the  company  were: 

assets. 

Time  loans $143,250.00 

Demand  loans 421, 834. 90 

Cash  in  banks 160, 906. 71 

Teller's  cash 36,310.01 

Mortgages  and  ground  rents 108,  231. 00 

Munici])al  and  railroad  bonds 150,  400. 00 

Real  estate,  927  Chestnut  street 224,850.26 

''        "      929        ''              '^     30,591.36 

Fixtures 6,:J35.22 

Interest,  rents,  commissions  accrued 7,  .553. 53 

Premiums  due 3, 294. 92 

Reclaimalilo  or  jierpetual  ]»olicies 1,  200.  IX> 

Due  from  sundry  accounts 7,  .377. 75 

1, 302, 135. 66 


liabilities. 

Due  depositors $629,711.17 

Capital  stock , 500,000.00 

Special  deposits  and  rents 47,  062. 00 

Trust  funds 2,352.25 

1,179,125.42 

Surplus  as  to  stockholders 123, 010. 24 

Surj)lus  as  to  bond  and  policy  holders 623, 010. 24 

I  also  certify  that  the  net  receipts  for  .January,  February,  and  March,  1891, 
amounted  to  $21,224.81. 

County  ok  Philadelphia,  ss.: 

James  F.  Lynd,  being  duly  affirmed,  says  that  he  is  the  secretary  and  tieasurer  of 
the  City  Trust,  Safe  Deposit  and  Surety  Company,  of  Pliiladclphia,  aud  that  the 
above  is  a  correct  statement  of  the  financial  condition  of  the  company  on  January 

1,  1891. 

James  F.  Lynd. 

Affirmed  and  subscribed  to  before  me  this  4tli  day  of  April,  A.  D.  1891. 
[SEAL.]  Wm.  G.  Wise 

Notary  Puhlic. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  I).  C,  April  6,  1891. 

My  Dear  Mr.  Horr :  Your  favor  of  the  2ud  instant  came  to  hand  to-day.  I  note 
your  suggestion  and  the  same  will  have  my  best  consideration. 

A  project  is  on  foot  to  resume  business,  in  which  case  no  receiver  will  be  appointed. 
If  this  effort  fails  the  person  indicated  by  you  will  have  very  careful  consideration. 

Very  sincerely,  „  «  -r 

E.  S.  Lacey. 

Hon.  R.  G.  Horr, 

Saginaw  {East  Side),  Mich. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  April  6,  1891. 

My  Dear  Sir  :  Your  valued  favor  of  the  3rd  instant  came  to  hand  to-day,  and  I  note 
what  you  say  in  referrence  to  the  receivership  of  the  Keystone  National  Bank,  of 
Philadelphia,  in  case  the  present  efforts  to  reopen  the  bank  fail. 

In  re]dy  I  desire  to  say  that  due  consideration  will  be  given  to  your  application 
when  the  time  comes. 

Of  course  there  are  always  a  number  of  a]>plicants  for  such  places,  and  frequently 
with  strong  recommendations  of  such  character  that  one's  personal  desires  must  be 
ignored.     I  can  assure  you,  however,  that  if  the  juoper  opportunity  otters  I  shall  be 
very  glad  to  offer  you  something  of  this  kind. 
Very  sincerely, 

E.  S.  Lacey. 

Hon.  R.  A.  Horr, 

Wellington,  Ohio. 


[Thaver.    Itaiikin  &.  Coldren,  attorneys  at  law,  Washington,  D.  C.    R.  H.  Thayer.    J.M.  Rankin. 

F.G.Coklren.] 

April  6,  '91. 
My  Dear  Mr.  Haxford: 

Will  you  be  kind  enough  to  see  that  the  accompanying  letter  reaches  Mr.  Lacey'e 
hands  early  to-day. 

Many  thanks  for  your  courtesy. 

Very  truly, 

RuFUS  H.  Thayer. 

Mr.  H.  .J.  Hanford, 

Chief  Clerk,  tfc 


11 

r 


1 

I 

i 

i 


^  i 


170 


INVESTIGATION    OF    NATIONAL    BANKS. 


' ' 


I  I  "• 


[Telegram.] 

April  6,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washingtonf  D.  C. 

Two  huudred  sixty-two  thousand  this  morning.    Will  telegraph  later. 

W.  P.  Drew. 
Nat.  Bank  Examiner. 


Philadelphia,  April  6, 1891. 

Sir:  The  pledges  now  reach  $268,000,  not  much  having  heen  done  to-day  heyond 
canvassing. 

It  was  hoped  that  Gen.  Wagner,  of  whom  I  wrote  in  last  letter,  would  be  able  to 
decide  whether  he  would  accept  the  presidency  to-day,  but  as  the  inauguration  of 
the  new  city  encumbent  took  place  to-day  he  was  prevented  by  the  duty  of  trans- 
ferring to  his  successor  the  department  of  public  works  and  will  not  be  able  to  re- 
port before  to-morrow.  Should  he  accept  the  place  it  is  generally  believed  that  it 
would  encourage  subscriptions  to  the  new  stock,  and  he  would  be  able  to  surround 
himself  with  some  of  the  ablest  men  in  the  city  and  insure  success  to  the  undertak- 
ing. 

Parties  who  have  subscribed  $40,000  to  the  proposed  new  bank  will  confer  to-mor- 
row, as  is  expected,  with  those  representing  the  new  stock  now  being  ]>ledged  for 
the  Keystone.     I  will  advise  you  promptly  of  any  results. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency ^  Washington,  D.  C» 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  I).  C,  April  6,  1891. 

Dear  Sir:  I  am  in  receipt  of  your  letter  of  the  4th  instant,  recommending  the  ap- 
pointment of  Mr.  .T.  A.  Sinn,  of  the  above-named  company,  receiver  of  the  Keystone 
National  Bank,  and  will  place  theliame  on  file,  to  have  careful  consideration,  should 
it  be  found  necessary  to  appoint  a  receiver. 
Very  respectfully, 

E.  8.  Lacey, 

Comptroller, 
Mr.  Charles  M.  Swain, 

(Care  City  Trust,  Safe  Deposit  and  Surety  Co.,  Philadelphia,  Pa.). 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  April  6',  1891, 

Dear  Sir:  I  am  in  receipt  of  your  reference  of  letter  of  Mr.  Charles  M.  Swain, 
president  of  the  City  Trust,  Safe  Deposit  and  Surety  Co.,  of  Philadelphia,  recom- 
mending the  appointment  of  Mr.  .Joseph  A.  Sinn,  of  said  company,  as  receiver  of  the 
Keystone  National  Bank,  and  will  place  the  same  on  file,  to  have  careful  considera- 
tion should  it  be  found  necessary  to  appoint  a  receiver. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 
Mr.  RuFUS  Thayer. 

Atlantic  Building,  City, 


[Telegram.] 

Hon.  E.  S.  Lacey, 

Comptroller  of  Cmrency,  Washington,  D.  C: 


April  7, 1891. 


Total  this  morning  two  hundred  seventv-four  thousand.     Conference  with  Wagner 


this  afternoon. 


W.  P.  Drew, 
National  Bank  Examiner. 


INVESTIGATION    OF    NATIONAL    BANKS. 


171 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency. 

Washington,  D.  C,  April  8, 1891. 

Sir:  The  account  of  Mr.  C.  J.  Stoddard,  for  services  and  expenses  on  behalf  of  the 
Keystone  National  Bank,  approved  by  me,  is  inclosed  herewith,  amounting  to  $114.00. 

You  may  remit  the  amount  to  him  out  of  trust  funds  in  your  possession,  filing  the 
voucher  as  a  charge  to  receiver's  expense  account  in  case  the  bank  does  not  resume 
business. 

Very  respectfully,  ^  ^  ^^^^ 

Comptroller. 

Mr.  Wm.  p.  Drew,  ,  ^     ,    „,.,,,,.     « 

National  Bank  Examiner,  in  charge  Keystone  National  Bank,  Pkdadelphta,  Fa. 


I  should  explain  that  Mr.  Stoddard  was  away  on  leave  when  he  was 
in  Philadelphia,  and  that  he  did  not  receive  pay,  only  from  one  source. 
Witness  then  read  telegram,  as  follows : 

[Telegram.] 

Treasury  Department, 
Washington,  D.  C,  Apl.  8,  1891. 

To  Mr.  Lacey  : 

Marsh  telegraphs  me  to-day  to  inform  you  that  the  parties  negotiating  for  control 
of  bank  are  to  give  answer  to  him  on  Friday  next. 

Wanamaker. 

(From  White  House.) 

Q.  The  telegram  you  received  on  April  8,  signed  Wanamaker,  came 
from  Mr.  John  Wanamaker?— A.  That  is  what  I  understand. 
Witness  proceeded  to  read  letters  and  telegrams,  as  follows: 

[Telegram.] 

April  8, 1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Revision  of  list  reduces  unconditional  pledges  to  two  hundred  and  fifty-four  thou- 
sand. Wagner  defers  decision  until  Friday.  Is  favorably  inclined.  His  acceptance 
will  insure  required  balance.    Windrim  will  write  you  to-day. 

W.  P.  Drew, 
National  Bank  Examiner. 


[Department  of  Public  Works.    Office:  Broad  and  Market  streets.  Booms  210  and  212.] 

Philadelphia,  April  8th,  1891. 
My  Dear  Mr.  Lacey  : 

A  fnend  of  mine.  General  Louis  Wagner,  is  being  considered  for  the  position  of 
president  of  a  reorganization  of  the  Keystone  National  Bank.  The  general  is  a  good 
business  man,  diligent,  doing  thoroughly  whatever  he  undertakes.  He  is  a  man  of 
strict  integrity  and  I  am  satisfied  would  bring  a  business  experience  with  him  that 
would  be  valuable  to  the  bank. 

He  has  told  me  that  on  Friday  next,  at  10  a.  m.,  there  is  to  be  a  meeting  of  gentle- 
men who  are  to  finally  conclude  upon  their  action  relative  to  the  interests  of  the 
bank.  He  does  not  know  what  may  be  the  outcome  of  the  meeting,  but  has  asked 
me  to  suggest  to  you  that  no  action  be  taken  in  the  aflairs  of  the  old  bank  until  after 
that  meeting. 

I  have  known  the  general  for  fifteen  years,  and  possibly  more,  and  have  alwaye 
respected  him  as  a  personal  friend. 
Yours,  truly, 

Jas.  H.  Windrim. 

Hon.  Edward  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C. 


-   s. 


II 


172 


INVESTIGATION   OP   NATIONAL    BANKS. 


I! 


I'lllLADKLPUIA,  Jpril  6\   1891. 

Sir:  I  teloj^^raiihed  you  this  moriiin**:  that  a  revision  of  the  pled^jes  for  the  new 
stock  of  The  Keystone  National  Bank  showed  reliahle  suhs(ri])tions  for  two  hundred 
uij«l  hity-four  thousand  dolhus  (.$2r)4,0(X)),  it  being  thought  best  to  eliiuiuate  such 
pledges  as  might  he  either  difficult  or  slow  of  collecti(ui. 

General  \\aguer  was  at  the  bank  this  uiorning,  and  had  a  general  view  of  the  as- 
sets and  liabilities,  but,  as  he  was  oblige<l  to  go  to  a  distant  }>art  of  the  State  this 
alternoon,  he  asked  for  further  tinu',  until  Friday  the  lOth  instant,  to  make,  with 
some  of  his  friends,  a  detailed  examination,  and  to  give  his  answer.  If  he  consents 
to  take  the  l»ank  it  is  likely  that  the  residue  of  this  new  capital  stock  will  be  taken 
at  once  by  his  friends,  annmg  whom  are  many  wealthv  and  induential  men,  among 
them  Hon.  K.  H.  Fitler,  who  has  Just  retired  from  the  mayoralty,  and  Johu  H. 
Michner,  president  of  the  Bank  of  North  America,  whom  vou  will  remember  seeing 
when  you  were  here.  The  active  (dearing-houae  committee  will  support  (General 
V/agner,  and  if  he  ioucludes,  as  I  think  he  will,  to  take  the  bank,  it  would  be  fully 
and  strongly  rehabilitated.  The  de]>ositor8  are  daily  giving  in  subscriptions  iii 
vaiying  amounts  to  the  new  stock. 

Kvery thing  is  quiet,  and  a  hojjeful  air  seems  to  prevail  among  the  stockhtdders 
ami  depositors.  Geu.  Wagner,  in  the  event  of  his  acceptance,  will  be  surrounded  by 
strong  and  well-known  men  in  the  directum.  Of  course  I  can  jmlge  only  froiu  this 
eml  of  the  line,  but  I  do  not  see  that  anyone's  rights  or  privileges  have  been  in  the 
least  abridged  since  the  bank  suspemled. 
Very  respectfully, 

W.  P.  Drew  , 

,,        T^    ..    ^  -^"«''  Bank  Exaininei'. 

Hon.  E.  S.  Lacky, 

Comptroller  of  the  Currency,  ll'a)thhigton,  D.  C, 


[I'elegram.] 


Hon.  E.  S.  La(  EY, 

Comptroller  of  Currency,  Washinyton,  1).  C: 
Total  this  morning  two  hundred  and  seventy  thousand. 


April  9,  1891. 


W.  P.  Drew, 
JS'a/.  Bank  Examiner. 


Treasi^ry  Department, 
Office  op  Comptroller  of  the  Currency. 

Washington,  1).  C,  April  9,  1891.  * 
My  Dear  Mr.  Windhim  : 

I  am  in  receipt  cd"  your  value«l  favor  of  the  8th  instant  and  note  what  you  say  in 
reierence  to  your  frien<l.  Geueral  Louis  Wagner,  who  has  under  consideration  a 
proi)osition  to  accept  the  jucsidemjy  of  the  Keystone  Naticmal  Bank,  if  reorganized. 

I  sincerely  hope  he  may  comdude  to  do  so,  and  will  afford  every  assistance  in  mv 
power  to  that  end.     I  will  withhold  my  action  toward  the  api)ointment  of  a  receive'^r 
until  Monday  of  next  week. 
Very  sincerely, 

E.  S.  Lacey. 

Tj         T  TT   -.IT  Comptroller. 

Hon.  James  H.  Windrim, 

lioom  210 J  Department  of  Public  Works,  Philadelphia^  Pa. 


Philadelphia,  April  9,  1891. 
Sir  :  Pledges  for  new  cai)ital  for  Keystone  National  Bank  at  close  of  business  to-da  v 
readied  $282,0(K).     At  noon  to-morrow,  (ien.  Wagner  will  meet  a  committee  of  lead*- 
nig  sharehohiers  and  depositors,  and  will  decide  whether  he  will  take  the  presidency 
ot  the  bank  as  soc.n  afterwards  as  he  can  confer  with  those  whom  he  represents 

I  will  promptly  inform  you  of  results.     There  is  no  change  in  the  general  situation 
since  my  letter  of  last  night. 
Very  respectfully, 

W.  P.  Drew, 

XT        T.    o    T  National  Bank  Examiner. 

Hon.  h,.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


INVESTIGATION    OF    NATIONAL    BANKS. 


173 


[Telegram.] 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Pledges  to-day  two  hundred  eighty-seven  thousand. 


April  10,  1891. 


W.  P.  Drew, 
Nat.  Bank  Examiner. 


r 


Philadelphia,  April  10, 1891, 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  J).  C: 

Sir:  General  Wagner  this  forenoon  had  a  conference  of  two  hours  with  the  direc- 
tors and  leading  depositors  of  the  Keystone  Nat.  Bank,  and  went  over  %s.  with 
them,  and  had  a  full  discussifm  with  a  view  of  deciding  whether  he  would  accept 
the  ]iiesideucv  and  put  the  bank  <ui  its  feet.  He  asked  time,  before  deciding,  to 
confer  with  Prest.  Michner,  of  the  Bank  of  North  America,  and  Prest.  Comegys,  of  the 
Philadeljdiia  Nat.  Bank,  whom  he  was  to  meet  this  afternoon  after  banking  hours. 
1  expect  his  tinal  answer  to-morrow  and  will  telegrai)h  result. 

As  stated  in  my  telegram  to  y<m  to-day  the  pledges  for  new  stock  now  reach 
$280,000.  It  is  expected  that  the  balance  required  will  be  secured  from  those  sup- 
porting Gen.  Wagner  for  the  presidency.  Should  he  accept,  Jcdiii  Field,  the  present 
postmaster  her<'  and  a  friend  of  the  Postmaster-General,  a  man  of  liighest  standing 
ill  all  icspects,  sent  to  me  last  evening  a  message  by  Mrs.  Lucas,  widow  of  the 
former  president,  that  if  (Jen.  AVagner  (wlnmi  he  endorses  for  the  position)  declined 
to  take  the  bank  he  himself  would  do  so.  He  is  an  uncle  of  Mrs.  Lucas  and  his  con- 
necticm  with  the  movement  wcuild  leave  no  (h)ubt  of  its  success.  I  give  this  informa- 
tion as  confidentially  given  to  me.  Slnmld  Gen.  Wagner  finally  decline  to-morrow 
1  \yill  at  once  learn  irom  Mr.  Field  his  intentions. 
Very  respectfully, 

W^.  P.  Drew% 
Nat.  Bank  Examiner. 


\ 


[Telegram.] 

April  10,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,    Washington,   D.  C:         • 
Wagner  had  <onference  with  directors  and  leading  depositors  to-day.     His  accept- 
ance depends  on  decision  of  members  of  clearing  house  committee  who  examine  to- 
day. » 

W  P.  Drew  . 

Nat.  Bank  Examiner. 


(S<liomacker  Piano  Compauy. 


Warerooms:  Xo.  lldfl  Chestnut  street,  PLihula;  145  and  147  Waliash 
Avenue,  Chicago.] ' 


'  Philadelphia,  April  10th,  1891. 

Dear  Sir:  On  March  23d,  at  the  recpiest  of  Col.  Drew,  the  examiner,  I  wrote  for 
information  relative  to  sunclry  notes  placed  by  me  in  the  Keystone  National  Bank,  of 
Philadelphia,  for  collection,  and  reriuested  that  an  order  be  given  the  officers  in  charge 
to  return  to  me  either  the  notes  or  monies  collected,  but  u]>  to  this  time  nothing  has 
ln'cn  done,  and  I,  with  others  in  like  positicm,  have  been  placed  in  a  very  unpleasant 
position.  My  notes  were  there  purely  on  collection,  and  the  inoiiey  l)elongingto  me, 
and  locked  up;  there  is  over  six  thousand  dollars,  and  which  causes  me  great  incon- 
venience and  trouble.  1  placed  a  $5,000  note  there  on  collection  on  the  morning  of 
March  3d.  It  was  pai<l  that  very  day.  I  wanted  that  money  to  make  a  payment  on 
the  1st  of  April,  and  hoped  from  day  to  day  that  you  would  either  appoint  a  receiver 
or  make  an  order  on  the  officers  in  charge  to  pay  such  monies  received  from  col- 
lections. Col.  Drew^  is  still  hopeful,  and  thinks  sutiicient  subscriptions  will  be  made 
to  enable  him  to  reorganize  the  bank,  but  I  am  doubtful  of  such  result. 


il 


% 


174 


INVESTIGATION   OF   NATIONAL    BANKS. 


\  i 


Ist.  Because  it  is  generally  known  that  the  affairs  of  the  bank  are  in  a  very  rotten 
condition,  and  that  no  responsible  parties  will  care  to  take  hold  of  it. 

2n<l.  Bpcauso  it  is  frencrally  believed  that  the  original  stockholders,  or  at  least  the 
principal  holders,  and  probably  such  who  were  mainly  responsible  for  the  wrecking 
of  this  bank,  have  drawn  out,  and  that  the  larger  portion  of  the  stock  has  been  trans- 
ferred to  irresponsible  holders.  I  do  not  assert  that  such  is  the  fact,  but  such  is  the 
impression. 

4th.  Because  it  is  well  known  that  the  young  man,  recently  elected  its  president, 
did  not  possess  the  qualifications  or  standing  to  fill  such  a  responsible  position,  but 
was  evidently  placed  there  to  relieve  others  from  what  was  to  happen. 

."ith.  ("ol.  Drew,  the  examiner,  has  now  given  these  parties  nearly  four  weeks  to 
iv(.rganize,  without  any  real  result,  and  whilst  he  is  still  confident,  I  do  not  believe 
tliat  an  earnest  effort  has  been  made  on  the  part  of  the  stockholders,  because  in  a 
great  <ity  and  financial  <renter  like  this,  it  ought  not  to  require  twenty-four  hours  to 
raise  $-4(X),0(X)  new  capital,  and  have  no  doubt  a  half  dozen  of  its  original  stoc^kholders 
con  hi  raise  that  amount  in  an  hour  if  they  choose  to  do  it,  but  my  impression  is  that 
they  are  waiting  for  others  to  do  it,  so  as  to  relieve  them  of  their  responsibility  in 
this  matter.^ 

Hth.  I  have  no  doubt  that  many  of  the  depositors  would  have  been  willing  to  take 
new  stock  if  an  earnest  effort  had  been  made.  I  am  not  a  stockholder,  and  never 
have  been,  but  I  «lid  agree  to  take  $5,000  of  the  new  stock,  provided  the  bank  could 
be  re<nganized  without  involving  any  possible  responsibility  from  the  fonner  man- 
agement. 

7tli.  I  understaml  that  a  meeting  of  stockholders  and  depositors  has  heen  called 
to  jueet  at  11  o'ch>ck  a.  m.,  to-day.  I  will  attend  and  hope  that  something  may  come 
out  of  it,  but  if  not,  I  would  advise,  without  further  parley  or  delay,  the  appoint- 
ment of  a  receiver. 

I  am,  very  truly,  yours, 

„       „    ^    _  H.  W.  Gray. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  WtMhington,  D,  C, 

P.  8.— The  meeting  of  about  a  dozen  of  stockholders  and  de}>ositors  together  took 
jdace  in  an  informal  way.  Gen'l  Lewis  Wagner,  the  prospective  president,  was  pres- 
ent; he  said  he  would  accept  the  presidency,  provided  the  bank  could  make  a  show- 
ing to  warrant  his  taking  hold  of  it;  that  is,  if  the  examiner  could  furnish  a  state- 
ment to  the  clearing-house  committee,  to  satisfy  them,  then  it  would  be  safe  to 
assume  the  task.  This  the  officers  and  esaminer  promised  to  do,  and  the  «juestion 
as  to  Gen'l  Wagner's  acceptance  will  now  depend  on  the  action  of  Messrs.  Comegys 
anil  Michner.  of  the  «learing-hou8e  committee. 

If  (ien'l  Wagner  does  accept  he  will,  by  heroic  measures,  be  able  to  put  the  thinir 
on  its  feet.  ** 

I  trust  you  will  give  this  an  early  reply,  and  state  what  my  chances  will  be  for 
receiving  the  money  <lue  me,  and  oblige. 
Yours,  most  truly, 

H.  W.  Gray. 


[Telegram.] 


„       _,  _  -  April  11, 1891. 

Hon.  E.  S.  Lacy, 

Comptroller  of  Currency,  Washington,  D^  C.f 

Pledges  two  hundred  eighty -nine  thousand.    Wagner  reserves  decision  until  Mon- 
day morning. 

W.  P.  Drew. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Wathington,  D.  C: 

In  my  letter  last  night  amount  should  be  two  hnndred  eighty-seven  thousand. 
Unchanged  this  morning. 

W.  P,  Drew, 


INVESTIGATION    OF    NATIONAL    BANKS. 


175 


Philadklphia,  Apl.  IJ,  ISOl. 

Sir:  Gen.  Wagner  is  expected  to  report  his  decision  Monday,  at  11  o'clock.    If  he 

declines  steps  will  be  at  once  taken  to  present  the  subject  to  Mr.  Field  and  to 

another  gentleman  here  who  has  the  matter  under  advisliuent,  and  in  a  day  or  two, 

at  farthest,  it  ought  to  be  definitely  known  whether  there  is  any  real  assurance  that 

the  bank  can  be  put  on  its  feet.     I  have  tried  to  expedite  affairs  as  much  as  possible, 

and  am  still  not  without  reasonable  hope  that  the  result  may  be  favorable.    I  will 

telegraph  yon  promptly. 

Very  resnectfully,  _ 

•^       ^  •^'  W.  P.  Drew, 

Nat,  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


•  -  h  \  ■ 


X      (.. 


[Telegram.] 

April  13,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 
Two  hjiudred  eighty-eight  thousand,  and  ten  thousand  more  conditional.    Wagner 
has  declined.    The  other  party  is  considering  it. 

W.  P.  Drew, 
National  Bank  Examiner. 


Philadelphia,  Ap.  13,  -91. 
My  Dear  Mr.  Lacey  : 

Gen'l  Wagner  called  at  mv  office  this  evening  to  say  to  me  '*  that  he  would  not  ac- 
cept the  presidency  of  the  Keystone  Nat^l  Bank  if  it  was  reorganized." 

I  think  I  would  pick  another  man  than  the  one  named  if  you  should  select  a  re- 
ceiver. 

Yours,  very  truly,  ^        ,^ 

Jas.  Windrim. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D,  C. 

Q.  Who  is  the  Mr.  Windrim  who  wrote  you  a  letter  dated  April  8, 
1891  ?— A.  He  was  the  Supervising  Architect  of  the  Treasury,  and  re- 
signed the  office  of  Supervising  Architect  to  become  superintendent  of 
public  works  in  Philadelphia. 

Q.  Who  is  the  other  man  to  whom  Mr.  Windrim  refers  in  his  letter 
of  April  13,  1891!— A.  I  could  not  tell  you.  I  remember  he  spoke  to 
me  about  the  man  and  wrote  me  next  day,  but  I  do  not  remember  whom 
I  was  considering  at  that  time. 

Witness  read  telegrams  and  letters  as  follows: 

Philadelphia,  Apl.  IS,  1891. 

Sir  :  As  soon  as  it  was  decided  that  Mr.  Wagner  would  not  take  the  presidency  of  the 
Keystone  National  Bank,  as  I  telegraphed  you  to-day,  the  matter  was  laid  before  Mr. 
Field,  the  postmaster,  and  he  will  let  the  bank  know  definitely  to-morrow  morning. 
Meanwhile  a  Mr.  Davis,  of  the  Petroleum  Exchange,  and  Mr.  Bromfield,  of  the  7th  Nat. 
Bank  (its  president),  have  also  the  subject  under  advisement.  Either  of  these  men 
will  make  capital  presidents  if  they  can  see  their  way  clear  with  the  assets.  Mr. 
Field  would  have  some  reas(m8,  connected  with  his  relationship  with  the  Lucas  fam- 
ily, to  consider  the  (jnestiou  favorably,  and  it  is  my  belief  that  he  will  consent  to 
take  the  bank  if  he  can  di8c(uinect  himself  from  the  post-office.  Perhaps  a  combi- 
nation ln't  ween  him  and  Mr.  Bromfield,  referred  to,  above  may  result.  If  these  propo- 
sitions fail,  and  the  fact  will  show  itself  in  the  next  forty-eight  hours  whether  either 
is  practicable,  then  the  only  course  will  be  a  receiver,  in  my  judgment.  I  will  tele- 
graph you  in  the  morning. 
Very  respectfully, 

"^       *  W.  P.  Drew, 

Nat.  Bank  Examiner, 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


f 


176 


INVESTIGATION   OF    NATIONAL    BANKS. 

[Telegram,  ] 


Hon.  K.  S.  Lacky, 

Comptroller,  Washbiglon,  D.  C: 


April  14,  1891. 


John  S.  Davis,  J.  cainfalist  ami  strongman,  has  matle  investigation  and  is  favorably 
considering  the  pretsidency.  .  "^ 


W.  P.  Drew 


[IVlcgram.] 

Tr        t;,    o    T  April  14,  1891. 

Hon.  E.  S.  Lacky,  ' 

Comptroller  Currency,  IVashinijtou,   D.  C. 
City  Treasurer  Bardsley,  introduced  by  Congressman,  will  call  on  vou  this  even- 


ing. 


New  parties  actively  investigating  to-day, 


W.  P.  Drew. 


By  the  Chairman  : 
Q.  Please  state  whether  Mr.  Bardsley  did  call  upon  vou,  as  mentioned 
in  the  letter  of  Ai)iil  14,  1891,  addressed  to  you  by  Mr.  Drew.— A. 
Yes,  sir;  he  did. 

Q.  When?— A.  I  think  it  will  crop  out  later. 

Q.  The  telegram  says  he  was  <-oinin^-  on  the  13th  of  April.- A.  The 
13th  of  April.  He  tinally  eanie  with  a  letter  from  Mr.  Drew  instead  of 
a  letter  from  a  Con^iressman.    I  think  that  will  be  shown. 

Witness  then  read  telegrams  and  letters,  as  follows: 

Philadelphia,  April  14,  1891. 
Sir:  As  I  teleon.phod  you  to-day,  Mr.   Davis  investigated  the  condition  of  the 
Keystone  ^ationnl  Bank  with  a  view  of  assuming  the  presi<lency,  if  the  state  of  the 
bank  would  w.irrsiut  it. 

Ho  expressed  hin.self  very  favorably,  and  will  give  definite  decision  to-morrow 
Mr.    1  >avi8  IS  luesident  of  the   IVtroleum  Exchange,  a  rich  and  capable  man,  and 
would  make  a  success  of  the  bank,  1  think,  should  he  take  it 

FromAvhat  I  have  learned  to-night  I  feel  quite  satisfied  that  if  all  other  plans 

r  li     ;,  ^^  '^'  ^'^^^  ^^*'  ''^'**'®'     ^®  ^^  ]K)8tmartterhere  and  a  strong  friend 

ot  the  iostmaster-lieneral,  andcouhl  at  once  surround  himself  with  a  strono-  board 
and  w<»uld  have  the  entire  confidence  of  the  community. 
I  will  keep  you  i>romi)tly  advised  of  the  progress  of  events. 
Very  respectfully, 

W.  P.  Drew, 

IT       1^   c?   T  Is'at.  Bank  Examiner. 

Hon.  L.  S.  Lacky, 

Comptrollir  of  the  Currency,  Washington,  I).  C. 


Treasury  Department, 
Office  of  Comptroller  of  the  Ctrrexcy, 

/)  ashnifiton,  I).  C,  April  14,  ISOl. 
Sir:  I  am  in  receipt  of  your  favor  of  the  13th  instant,  in  whicli  vou  inform  me  that 
Mr.  \\  agner  has  dechned  the  presidency  of  the  Keystone  National  liank  and  that 
Mr.  Pield  is  now  considering  whether  or  not  he  will  accept  it. 

I  also  note  what  you  say  in  reference  to  Mr.  Davis  and  Mr.  Hrumficld  I  desire  to 
impress  upon  you  very  l-onibly.  and,  through  you,  those  interested,  that  it  will  be 
lUipracticable  lor  me  to  delay  appointment  of  a  receiver  very  much  longer,  and  that 
whatever  is  done  must  be  decided  upon  without  further  delay.  ' 

Very  respectfully, 

E.  S.  Lacey, 

Mr.  W.  P.  Drew,  Comptroller. 

JfJjcaminer  in  charge  Keystone  National  Bank,  Philadelphia,  Pa. 


INVESTIGATION    OF    NATIONAL    BANKS. 


177 


Philadelphia,  April  Jo,  ISOl. 

Sii::  Mr.  Davis  and  Mr.  Field  had  a  coufer(\nce  this  afternoon,  and  are  to  meet  the 
directors  and  leading  stockholders  at  10  a.  m.  to-morrow.  Mr.  Field  has  consented 
to  take  the  vicir-iuesidency  under  Mr.  Davis  as  president,  and  to  give  his  attention 
towards  obtaining  a  board  of  directors  whose  names  shall  at  once  give  entire  confi- 
dence. Mr.  Wanamaker  will,  it  is  thought,  take  a  place  in  the  board  to  oblige  his 
friend  Mr.  Fiehl.     I  will  inform  you  promptly  of  results. 

Your  letter  of  the  14th  inst.  was  received  to-day  and  its  injunctions  laid  before 
those  interested.     It  had  the  effect  of  expeditinrg  matters. 
Ver\  respectfully,  &c., 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


[Telegraui.] 

Hon.  L.  S.  Lacey, 

Comptroller  of  Currency,    Washington,  D.  C: 

Three  hundred  and  three  thousand.    It  looks  like  Davis,  with  strong  support. 

W.  P.  Drew. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

1523  Conn.  Ave.: 


April  16,  1891. 


I  am  carefully  investigating  aft'airs  of  the  bank,  with  the  intention  of  taking  same 
if  found  satisfactory,  and  ask  your  patience. 

John  S.  Davis. 


[Telegram.] 

xr       ,.,   o    T  April  16,  1891. 

Hon.  E.  S.  Lacey,  ' 

Comptroller  of  Currency,  Washington,  D.  C: 
Davis  likely  to  accept  if  certain  conditions  under  consideration  are  complied  with 

W.  P.  Drew. 


Hon.  E.  S.  LACEV,  Vm...^^,.^m^,  April  16,  mi. 

Comptroller  of  the  Currency,  Washington,  D.  C.  : 

Sir:  This  morning  Mr.  Field  suqmsed  us  all  bv  informing  us  that  he  could  not 
take  a  directorship  in  the  Keystone  National  Bank,  owing  to  objections  by  his  Imsiness 
partners,  on  the  ground  that  he  could  not  assume  any  new  duties  without  seriously 
atiecting  their  business.  This  action  comes  as  a  damper  on  the  euthusiasra  of  those 
who  had  built  upon  his  ardent  and  positive  assurances  of  last  evening  that  he  would 
take  the  vice-presidency.  A  note  was  received  from  him  later  in  the  dav,  explain in«-- 
the  reason  above  referred  to,  and  extending  his  cordial  and  warm  support  '^ 

Although  disappointed,  Mr.  Davis  did  not  let  Mr.  Field's  decision  affect  his  pur- 
pose, and  he  has  been  engaged  at  the  bank  most  of  the  day  going  over  carefully  and 
m  detail  its  accounts  and  general  condition.  He  telegraphed  vou  afterwards,  to  show 
that  he  was  earnestly  coutemplatiiig  taking  the  work  as  its  president.  You  will 
remember  that  in  the  formal  settlement  with  the  Lucas  estate  in  Januarv  last  a  re- 
ceipt was  given  by  the  bank  in  full  of  all  claims  against  the  estate,  on  the'  latter 
iSI?^^  **^^^  *,^  ^^"^  ^'^^^  *^®  building  for  $225,000  and  the  other  properties  for 
IV?n'2S'  equahng  $586,000  in  all.  Other  obligations  held  by  the  bank  for  some 
^110,000,  were,  by  the  terms  of  the  receipt,  to  be  returned  to  the  estate  without  pav- 
ment  of  the  same.  This  amount,  justly  due  the  bank,  Mr.  Davis  insists  shall  be 
recognized  by  the  estate  and  renewed  or  paid,  ami  a  committee  took  that  matter  in 
cnarge  this  afternoon  with  the  purpose  of  obtaining  such  recognition.  I  think  the 
i'«'lial)ilitati<»n  of  the  bank  turns  on  this  point,  and  I  believe  it  will  be  satisfactorily 
3702 12 


1 


.r 


1    '-fi 


*■ 


178 


INVESTIGATION   OF   NATIONAL   BANKS. 


settled  iu  favor  of  the  claim.     I  hope  aud  expect  that  it  will  be  arranged  to-moi  row, 
and  will  promptly  notify  yon. 

Mr.  Davis  is  a  v«^ry  suitable  man  for  president  of  the  bank,  beinj;  rich  and  ron- 
nected  by  family  aud  business  interests  with  other  wealthy  men,  and  should  be  U\ko 
the  bank,  he  will,  I  think,  easily  and  speedily  place  it  in  the  forefront  of  our  best 
banks  here. 

The  necessary  funds  will  be  at  once  iu  hand,  aud  strong  men  will  go  upon  the 
board. 

Very  respectfully, 

W.  F.  Drew, 
JS'at.  Hank  Examiner, 


[Telegiaiu-l 


Hou.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  JJ,  C: 

Matter  referred  to  iu  my  letter  is  uuder  adjustment. 


April  17,  1891. 


Prospects  uncbanged. 

W.  P.  Drew  . 


I 


Philadelphia,  April  17,  tSOl. 
Hou.  E.  S.  Lacey, 

Comptroller'  of  the  Currency,  WaHhinglon,  1).  C, : 

Sir:  Mr.  Davis  has  been  absent  from  the  city  to-day,  but  the  jnoposition  to  recog- 
nize as  a  just  claim  the  $110,000  not  embraced  in  the  receipt  by  the  bank  reft^red  to 
in  my  letter  of  yesterday  has  been  consideri'd  by  those  reprei*enting  the  Lucas 
estate  to-day,  and  a  conference  on  the  subject  will  be  held  to-morrow  with  Mr. 
DavivS.  The  indications  now  are  that  it  will  be  so  recognized,  and  unless  Mr.  Davis 
changes  his  mind,  which  is  not  likely,  he  will  at  once  proceed  to  close  uegotiations. 
I  will  telegraph  you  any  result. 

As  showing  Mr.  Field's  reasons  for  withdrawal,  I  enclose  letter  from  him. 
Very  respectfully, 

W.  P.  Drew, 
Nat,  Bank  Examiner. 


Post-Office,  Philadelphia,  Pa., 
Office  of  the  Postmaster,  April  17,  18U1. 

Dear  Sir:  Referring  to  Keystone  National  Bank,  permit  me  to  say  that  I  consider 
it  one  of  the  best  locations  in  the  city,  and  believe  that  under  good  management  it 
<'annot  be  otherwise  than  a  success.  From  what  I  liave  learned  iu  regard  to  its 
present  condition  and  its  future  prospects,  were  it  not  that  my  time  is  not  only  occu- 
pied but  that  I  am  really  under  pressure,  I  would  be  very  glad  indeetl  to  take  hold 
of  the  institution  with  Mr.  Davis  and  others,  confidently  believing  that  there  is  a 
bright  future  before  it. 

I  can  only  express  my  deep  regret  that  my  way  is  not  clear  to  join  in  the  present 
effort  now  being  made  for  its  reorganization. 
Yours  very  truly, 

John  Field. 
W.  P.  Drew,  esq., 

Philadelphia,  Pa, 


[Tolegraui.] 


April  18,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 
Conference  on  Monday  between  respective  attorneys  as  to  estate  recognizing  fur- 
ther liability  looks  favorable. 

W.  P.  Drew. 


INVESTIGATION   OF   NATIONAL   BANKS. 


179 


PiiiLADFLPJiiA,  April  18,  1801. 

Sir  :  Mr.  Davis,  who  has  been  detained  to-day  at  court  at  Way's  Landing,  New  Jer- 
sey, will  be  at  the  bank  on  Monday,  and  I  expect  confidently  tliat  the  question  of 
the  rehabilitation  of  the  bank  will  bo  decided  practically  on  that  day. 

I  will  inform  you  promptly  of  the  result. 

Verv  respectfullv, 

W.  P.  Drew, 
A  a/.  Bank  Examiner. 
Hou.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  WaHhingtonf  D.  C, 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  1).  C: 

Davis  in  doubt.     Negotiations  still  i>ending. 


April  20,  1891. 


W.  P.  Drew 


Philadelphia,  April  20,  1891. 

Sir:  Mr.  Davis,  who  has  been  absent  attending  c<uirt  at  Way's  Landing,  New  Jer- 
sey, sent  me  wor<l  to-<lay  intimating  so  much  doubt  as  to  his  acceptance  of  the  man- 
agement of  the  Keystone  National  Bank  that  I  telegra])hed  you  to  that  effect.  Since 
sending  the  telegram  he  has  again  sent  word  to  me  that  he  will  be  still  absent,  as 
above,  until  Wednesdiiy  or  Thursday  of  this  week,  and  reserving  his  final  decision 
until  his  return.  The  sti])ulation  which  he  made  when  last  at  the  bank  on  the  17th 
iustant,  that  $110,000  debt  of  the  Lucas  estate  should  be  re<ognized  beyond  the 
amount  mentioned  in  the  receipt  before  referred  to  in  my  letter,  has  been  substan- 
tially agreed  to,  and  had  I  not  received  his  word  of  doubt  this  forenoon  I  should 
have  re<i;arded  the  questi<ui  as  favorably  settled.  As  it  is,  I  am  not  so  strongly  fixed 
in  that  belief. 

It  has  occurred  to  uie  that,  perhaps,  if  at  the  close  of  this  week  no  definite  and  as- 
sured result  is  reached  which  would  assure  the  rehabilitation  of  the  bank,  it  might 
be  ])racticable  to  take  the  bank  outofthehandsof  a  receiver,  should  future  measures 
looking  to  that  end  be  adopted. 

Meanwhile  I  think  I  can  say  that  the  interests  of  all  concerned  are  now  suffering 
no  detriment  by  awaiting  events. 

Of  course  I  should  be  glad  to  be  relieved  from  the  care  of  the  bank  as  soon  as 
])racticable,  but  still  I  am  willing  and  desirous  of  serving  the  best  interests  of  the 
bank  so  far  as  I  may  be  able. 
Very  respectfully, 

W.  P.  Dhevv, 
Xat.  Bank  Examiner. 

Hon  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  IJ.  C,  • 


^1 


A  a 


[TelegTain.] 

April  21, 1891. 
Hon.  E.  S.  Lacey, 

Comptroller,  Waxhington,  JJ.  C: 

Meeting  of  depositors  called  for  to-morrow  by  depositors  to  consider  taking  the 
bank  with  their  own  board  aud  officers.  Previously  received  pledges  for  three  hun- 
dred thousand  available. 

W.  P.  Drew. 


PiiiLADELiiiA,  April  ^1,  1801. 

Sir:  Some  500  copies  of  the  enclosed  circular  were  sent  this  afternoon  to  de^iositors 
of  the  Keystone  National  Bank  by  some  of  the  principal  de])ositors,  who  after  con- 
sultation concluded  that  this  stop  might  facilitate  the  rehabilitation  of  the  bank. 
It  is  proposed,  as  they  inform  me,  to  obtain  some  subscriptions  to  ucav  stock  by  de- 
positors agreeing  to  apply  some  part  or  all  of  their  deposits  to  its  purchase,  or  to  in- 


1' 


I 

I,   i 


! 


ffr" 


< 

i 


J> 


f 


180 


INVESTIGATION    OF    NA ITONAL    BANKS. 


<hu;e  voluntary  luoHcrjiOu  the  part  ordopo.sitors  lo  ;i«;rer  to  lit  a  jKiit  or  all  oftheir  de- 
posits be  put  in  the  t'orni  of  "time  certilicatt\s  on  ileiK»sit,"  pavablw,  sav  oue  vear 
hf'Dce.  '      .  >         J 

This  plan  is  not  intrudrd  to  Interfere  with  the  payment  for  new  hfock  of  the 
]»le(l«,^es  already  named,  in  amount  some  three  hundre<l  thousand  dollars. 

Mr.  Davis  will  be  at  the  bank  tomoiTow,  and  will  jrive  his  (iual  dccisi«ni. 

The  aetion  taken  by  the  representative  depositors  named  on  the  circular  is  exclu- 
sively their  own  snjjjjestion. 

I  will  prouii»tly  re^iort  results. 
Very  respectfully, 

W.  r.  Dkkw, 

.,        ,,   o   T  yat.  Bauk  Examiner. 

lion.  h.  S.  Lacky, 

Comptrolhr  of  Ihv  Vurreitcyj  fVa'thingfon,  D,  C» 


rillLADFLPHIA,  April  2M,  1801. 

The  undersijfned,  depositors  of  the  Keystone  National  Bank,  understandin«r  that 
you  are  likewise  a  depositor,  res].ectfully  reijuest  you  to  meet  with  us  at  Meade  Post 
room,  G.  A.  R.  (Concert  Hall,  121*)  Chestnut  street),  at  three  o'clock  on  Wednesday 
afternoon,  April  22nd.  "^ 

The  object  of  the  meetinj,^  is  to  consider  the  best  means  to  reeoustruct  the  bank 
and  to  render  our  deposits  available. 

II.  W.  (;ray, 
W.  K.  Wakxer, 
H.  F.  Whitman, 

E.  C   h'iCHMOND, 

.F.  (}.  Ka.msdkll, 
James  Keku, 
F.  A.  Davis, 

R.  M.   HoLBKOOK, 

W.  H.  Waxamaker, 

J.  O.  BowMAX,  and  others. 

Committee  theu  adjourned  until  Tuesday,  May  3,  at  1<);3()  a.  m. 


Committee  on  Banking  and  Currency, 

WaHhimiton,  Tmnday.,  May  3,  189;,\ 
The  coniinittee  met  at  10:30  a.  ni. 

Present:  The  Chairman  (Mr.  Bacon),  and  Messrs,  Cox,  VVike,  Svvny 
Biisey,  Cate,  Cobb,  Brosius,  and  Walker.  »    i      jj 

EDWARD  S.  LACEY— recalled. 
Mr.  Lacey  read  the  following  telegrams: 

[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  IVashinyton,  I).  C: 
Davis  accepts  with  conditions  likely  to  be  a;^reed  to. 


April  22,  1891. 


W.  P.  DiJEW. 


PniLAi>KLi>niA,  April  2J,  1891. 
Sir:  I  enclose  copy  of  letter  received  this  day  from  Mr.  Davis,  which  M'ill  explain 
itself,  and  which  promises  to  extricate  the  Keystone  National  Bank  from  its  ditticnl- 
ties. 

At  a  meeting  of  ItW)  depositors  held  this  afternoon  the  letter  was  read,  and  its  pro- 


investigatiok  of  national  banks. 


181 


visions,  so  far  as  pertaining  to  them,  fnlly  concurred  in.     linmediate  stei)s  will  bo 
taken  to  secure  fulfillment  of  the  other  stipulations. 

It  will,  of  course,  take  several  days  to  perfect  all  arrangements,  but  I  think  the 
main  diflficnlties  are  on  the  eve  of  removal. 
I  will  report  progress  promptly. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington^  D,  C. 


Keystone  National  Bank, 
1326  AND  1328  Chestnut  Street,  Opposite  U.  S.  Mint, 

Philadelphia,  April  22nd,  189-. 
My  Dear  Sir:  I  have  been  requested  by  various  parties  having  an  interest  in  the 
Keystone  Bank,  which  is  now  in  your  hands,  to  accept  the  position  as  president  of 
the  same.  If  you  will  relinquish  the  bank  to  new  management  upon  the  evidence 
that  $300,000.00  or  $400,000.00  of  valid  new  subscribtions  are  made  to  stock  to  main- 
tain its  present  capital,  and  the  arrangement  with  Lucas  estate  as  suggested  by  Mr. 
Marsh  and  known  to  yourself,  I  would  accept  the  same,  if  the  present  stock-holders 
and  depositors  would  accept  me,  and  permit  their  accounts  to  remain  in  the  bank, 
and  further  agree  to  draw  upon  the  present  balance,  one  twelfth  i>art  or  less  for  each 
month  following  this  date.  I  should  desire  to  choose  my  own  board,  as  well  as  my 
employees,  subject  to  their  own  suggestions.  I  should  expect  the  hearty  support  of 
all  who  are  interested  at  present  in  the  Keystone  Bank  and  would  do  all  that  an 
earnest  and  careful  endeavor  would  accomplish  on  my  part. 
Respectfully  yours, 

John  C.  Davis. 
Mr.  W.  P.  Drew, 

U.  S.  BanJ:  Examiner, 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  April  22, 1891. 
Sir  :  In  reply  to  your  confidential  communication  of  recent  date,  you  are  resi^ect- 
fully  informed  that  unless  your  case  involves  more  than  a  delivery  to  you  of  the 
proceeds  of  collection  items  belonging  to  you,  and  upon  which  the  Keystone  National 
Bank  has  no  lien,  instructions  already  given  to  the  examiner  will  govern,  and  delivery 
of  moneys  collected  by  the  exjiminer  tor  your  account  will  be  proper.  The  Comp- 
troller is  verbally  ad\  ised,  however,  that  you  are  responsible  for  certain  discounts 
about  to  mature,  and,  if  there  is  no  objection,  it  might  be  well  to  ]>ermit  proceeds 
of  eollections  received  since  suspension  to  be  applied  to  the  indebtedness  when  it 
beconu's  due. 

It  is  to  be  hoped  that  some  ])roper  action  will  be  taken  without  further  delay  to 
l)hice  the  bank  upon  an  active  footing,  in  which  ease  your  present  difficulty  would 
be  removed,  and  no  special  instructions  in  your  behalf  will  be  necessary. 

You  are  at  liberty  to  show  this  c<mimunication  to  the  examiner,  and  if  further 
delay  would  be  greatly  detrimental  to  your  interests,  specific  instructions  will  be 
given  upon  a  full  statement  of  all  the  fivcts. 
Very  respectfully, 

E.  S.  Lacey, 

\f     XT    Air   /.  Comptroller. 

Mr.  H.  W.  Gray, 

President,  Shomacker  Piano  Co.,  Philadelphia,  Pa, 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller,  Washington,  D.  C. : 

Hopeful  feeUng  prevails.    Parties  in  active  consultation. 


April  23, 1891. 


W.  P.  Drew. 


t 


% 


k 


■9  4 


182 


TNVKS'l'IOArrON   OF   NATIONAL   BANK^^. 


PlIILADKM'IIIA,  April  So,  ISOl. 


Siu:  Tln'  imblication  in  :i  iiMniiiiio  iir\vMp:ii)cr  tluit  the  lat»'  pnsidont  ol"  the  Key- 
stone National  liank  had  used  irn-jfjilaily  $1,()(H),()00  of  tlu'  funds  of  the  bank  so 
exasperated  tlie  representatives  of  his  estate  as  to  defer  their  formal  acknowled<;- 
nient  of  the  halanee  still  due  the  hank  from  this  source.  It  is  believe<l  the  delay 
will  be  only  for  a  day  or  two  and  that  if  the  voluntary  reeoj?nition  of  this  halanee 
should  not  be  given  the  matter  will  not  he  sued  for  under  the  proposed  new  man- 
agement of  the  hank. 

Mr.  Davis  has  been  at  the  bank  all  day,  going  over  the  accounts  and  books  and 
seeing  depositors  and  stockholders,  on  all  of  whom  he  makes  a  most  favorable  im- 
pression. He  is  a  very  suitable  man  for  the  place,  successful  an<l  energetic,  and  has 
many  warm  and  strong  friends.  It  is  my  opinion  that  he  will  like  the  bank,  and  by 
the  3d  of  May  will  be  able  to  ojien  it  with  new  directors  and  a  new  force,  and  with 
such  guarantees  as  will  insure  its  success  from  the  start. 

All  the  pajiers  here  speak  highly  of  Mr.  Davis,  and  predi<t  that  under  his  manage- 
ment everything  will  be  satisfactory  in  all  respecrts. 

Committees  have  been  at  work  all  day  among  the  depositors,  and  bring  back  en- 
couraging reports  to-night. 

Very  respectfully,  yours, 

W.  P.  Dkew, 
Nat.  Bunk  Examiner. 
Hon.  E.  S.  Lacey, 

CompiroUtr  of  the  Currency,  Washington,  D.  C. 

The  meeting  of  depositors  yesterday  was  presided  over  by  W.  H.  Waniimaker,  a 
brother  and  business  associate  of  the  Hon.  Postmaster-General. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller,  Washington,  D.  C: 
Matters  progressing  very  favorably. 


Aprtl  24,  1891. 


W.  P.  Drew. 


PlIILADELPIIlA,  April  S4,  1S91. 
Sir:  a  great  many  depositors  have  to  d.iy  signed  flu-  reijuired  agreement  slipu- 
lated  ])y  Mr.  Davis,  and  h«-  has  nut  many  of  n:eni.  On  all  he  has  mad«-  a  goo«l  im- 
pression. He  expresst's  iiimself  as  satisli.-d  I  bat  I  he  .rtorl  lo  rehabilitale  The  bank 
will  besueeessfnl,  and  b.'li.vcs  thai  the  bank  ran  open  on  the  4th  of  Mav,  one  week 
from  next  Monday.  Iliis  expeitalion  oii  liis  part  has  brightened  tbe  hopes  of  all 
interested.  Mr.  Read,  the  atty.  for  the  hank  ami  U.  S.  dist.  atl  v.,  who  visits  Wash- 
ington to-morrow  on  other  business,  will  call  on  you.  He  will  be  able  to  give  you 
information  in  regar<l  to  the  progress  of  events  affecting  the  )»ank. 
Very  respectfully, 

VV.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Curreney,  Washington,  D.  C, 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  I).  C.  : 
Prospects  very  favorable.    Conditions  likely  to  be  met. 


April  25, 1891. 


W.  P.  Drew. 


INVESTIGATION   OF   NATIONAL    nANK.«5. 


183 


PniLADELnriA,  Ajml  So,  1891. 
Sir:  Matters  at  the  Keystone  Nati(»nal  Bank  are  progressing  favorably,  fully  one- 
half  of  the  deposits  having  already  been  arranged,  by  agreement,  to  be  drawn  in 
accordance  with  the  terms  of  Mr.  Davis,  who  believes  that  if  the  other  conditions 
can  be  met  successfully,  as  now  seems  practicable,  the  bank  will  be  ready  for  open- 
ing early  in  May. 

The  condition  aflFecting  the  Lucas  estate  is  in  the  hands  of  the  respective  attor- 
neys, and  payment  of  the  pledged  new  stock  will  probably  be  secured  in  the  coming 
week.  So  that  if  no  unforeseen  contingency  arises,  I  think  it  may  reasonably  be  be- 
lieved that  the  rehabilitation  of  the  bank  is  in  the  near  future. 

Within  the  last  few  days  reporters  of  the  New  York  Herald  have  been  actively 
seeking  for  information — not,  in  my  judgment,  obtainable — which  will  connect  Mr. 
Wanamaker  with  the  troubles  of  the  bank.  None  have  been  near  me,  but  I  know 
from  others  who  have  been  approached  that  this  attempt  is  being  made. 

So  far  as  I  know,  or  have  any  reason  to  suspect,  there  is  no  foundation  whatever 
for  such  a  statement. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


il 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Outlook  still  favorable.     More  than  one-half  depositors  signed. 


Apr  LI  27, 1891. 


W.  P.  Drew. 


Philadelphia,  April  27, 1891. 
Sir:  There  has  been  no  change  in  the  situation  at  the  Keystone  National  Bank 
since  my  telegram  of  this  morning.  Mr.  Davis  has  been  atthe'bank  all  day,  and  the 
depositors  have  continued  to  respond,  almost  without  exception,  favorably  to  the 
proposition  for  payments  by  installments,  as  reported  in  my  letters.  Measures  are 
in  operation  to  secure  payment  of  the  new  stock,  and  the  report  from  the  represent- 
atives of  the  Lucas  estate  is  promised  for  to-morrow.  As  soon  as  the  latter  matter 
is  adjusted,  a  meeting  of  the  stockholders  will  be  held  to  take  necessary  action  with 
respect  to  reduction  of  capital  and  placing  the  residue  in  escrow.  Unless  some  fail- 
ure in  these  respects  takes  place,  the  bank  will  resume  some  day  next  week. 
Very  respectfully, 

W.  P.  Drew. 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,   Washington,  D,  C» 


[Telegram.] 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C. 

No  change  in  situation.    All  actively  at  work. 


April  2.3,  1891, 


W.  P.  Drew 


Philadelphia,  Ap'l  28, 1891. 

Sir  :  Matters  at  the  Keystone  National  Bank  remain  very  much  as  stated  in  my 
last  letter.  The  response  from  the  depositors  has  been  almost  unanimous  in  acqui- 
escence in  the  propositions  of  Mr.  Davis. 

Collections  of  the  new  subscription  of  stock  has  been  entered  u]ion  and  with  pros- 
pects that  most  of  the  same  will  be  secured  in  necessary  funds  within  a  day  or  two. 


184 


INVESTIGATION    OF   NATIONAL   liANKf^. 


LWESTIGATION    OF    NATIONAL    lUNKS. 


18.^ 


The  settlement  of  the  Lucas  matter  has  not  yet  been  reported,  but  will  probably  ha 
had  to-morrow.  r  ,  i  j 

Mr.  Davis  expresses  himself  as  fully  satisfied  with  the  present  pro«rres3.    He  is  at 
the  bank  all  day.  ^    ^ 

Very  respectfully, 


Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


W.  P.  Drew, 
Nat.  Bank  Examiner 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  7).  C: 
Matters  still  progressing  favorably. 


April  29,  1891. 


W.  P.  Drew. 


Philadelphia,  April  29,  1891. 

Sir:  The  settlement  with  the  Lucas  estate  which  was  expecteil  to-day  lias  not 
heen  concluded,  although  the  attorneys  in  the  case  have  been  in  consultation.  It  is 
hoped  that  to-morrow  will  bring  about  the  desired  rcsnlt. 

Meanwhile  the  depositors  have  continued  to  give  their  assent  to  Mr.  Davis'  prop- 
osition, and  that  condition  may  be  said  to  be  finally  agreed  to. 

It  has  been  thought  best  to  defer  obtaining  payment  of  pledges  for  new  stock,  and 
also  the  obtaining  tlie  <!onsent  of  the  present  stockholders  to  place  their  stock  iw 
escrow  until  the  Lucas  estate  matter  has  been  settled  favorably.  Then  the  remain- 
ing  conditions  will  be  speedily  agreed  to  I  think.  Mr.  Davis  "has  been  at  the  bank 
^  IX  *J'xi  "^"'"  "'*^  ^^'^^  records  and  acs.  He  speaks  very  hopefully  if  the  re- 
sult ot  the  "conditions"  which  he  named  are  complied  with.  While  he  ^' keeps  his 
own  counsel"  he  evidently  has  outlined  a  plan  for  reorganization  and  a  imlicv  to  be 
followed  should  he  take  the  bank. 

The  city  treasurer,  Mr.  Bardsley,  is  at  the  bank  daily  and  is  kept  fullv  informed 
as  to  developments.    He  too  seems  sanguine. 
Very  respectfully, 

W.  P.  Drew, 

-a       T.   a   T  National  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C, 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 
No  change.     Parties  to  settlement  are  in  conference. 


April  30,  1891, 


W.  P.  Drfw. 


Philadelphia,  April  30, 1891. 
Sir:  When  I  left  the  bank  this  afternoon  the  conference  between  Mr.  Read  and 
Mrs.  Lucas  had  not  terminated.     She  is  very  reluctant  to  agree  to  the  terms  which 
Mr.  Davis  has  prescribed  as  a  condition  of  his  acceptance,  but  I  think  with  the  ad- 
vice of  her  uncle  John  Field,  the  postmaster  here,  she  will  finallv  decide  to  do  so 
On  this  hinges  the  whole  matter  of  rehabilitation. 
I  will  report  promptly  results. 
Very  respectfully, 

W.  P.  Drew, 
National  Bank  Examiner, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C, 


[Telegiain.l 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  7).  C. 

Result  in  Lucas  matter  not  vet  reached. 


May  1,  1891. 


W,  P.  Drew. 


Treasury  Department, 
Office  of  Comptoller  of  the  Currency, 

Washington,  D.  C.,  May  1,  1891. 
Mr.  W.  P.  Drew, 

Examiner  in  charge  of  Keyxtone  National  Bank,  Philadelphia,  Pa.: 

Sir:  lam  in  receipt  of  your  favor  of  the  29th  ultimo  and  telegram  of  the  30th, 
from  which  I  learn  that  the  rehabilitation  of  your  trust  is  delayed  by  the  failure 
upon  the  part  of  the  representatives  of  the  bank  and  the  estate  of  Mr.  Lucas,  de- 
ceased, to  come  to  an  agreement  as  to  matters  in  controversy  between  the  two  in- 
terests. 

I  desire  you  to  impress  upon  the  attorneys  having  these  negotiations  under  con- 
sideration that  I  shall  feel  obliged  to  immediately  proceed  to  the  appointment  of  a 
receiver  unless  these  negotiations  come  to  a  satisfactory  conclusion  within  twenty- 
four  horn's  after  the  receipt  of  this  communication. 
Very  respectfully, 

E.  S.  Lacey,  * 

Comptroller. 


Philadelphia,  May  1, 1891— 8  p.  m. 

Sir:  Mr.  Hney,  the  attorney  for  Mrs.  Lucas,  has  advised  her,  as  I  learn  to-day,  to 
accept  the  ]>roposition8  of  the  probable  new  president  of  the  bank,  but  she  has  not 
as  yet  formally  rendered  lu^r  decision.     It  is  likely  to  be  given  at  any  time. 

Meanwhile  matters  are  as  usual  at  the  bank.  Mr.  Davis  is  busily  engaged  there 
daily  and  evidently  is  of  the  opinion  that  he  will  have  charge  of  it  before  long.  Mr. 
McFadden,  who  has  been  absent,  returned  to-day,  and  is  active  in  aiding  the  bank 
towards  recovery.  If  all  is  right  I  think  he  will  continue  in  the  bank,  probably  the 
only  one  of  its  fonner  management. 
Very  respectfullj'^, 

W.  P.  Drew, 
Nafl  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


[Telegram.] 


Philadelphia,  May  1,  1891. 
Hon.  Charles  Foster, 

Secretary,  Washington,  D.  C: 

Since  the  credit  of  our  whole  national-banking  system  involved  in  the  matter,  we 
the  citizens'  committee  of  fifty  therefore  urge  that  the  most  earnest  efforts  should  be 
made  to  discover  and  punish  the  perpetrators  of  the  Keystone  National  Bank  defal- 
cation, and  that  the  Federal  authorities  use  every  means  in  the  power  of  the  Goveru- 
nient  to  secure  the  apprehension  of  Gideon  \V.  Marsh,  the  defaulting  and  abscond- 
ing president  of  Keystone  National  Bank. 

Joseph  DkF.  Junkin, 
Chuirmun  Executive  Committee,  Citizens^  Committee  of  Fifty, 


[Telegram.] 


May  2,  1891. 


Hon.  E.  S.  Lacey, 

Comptroller,  Washington,  D.  C: 

Attorneys  report  matters  likely  to  be  settled  satisfactorily  on  Monday,  and  request 
delay  until  then.     Will  write. 

W.  P.  Drew. 


II 


I  ., 


186 


Investigation  of  national  banks. 


INVESTIGATION  OF   NATIONAL   BANKS. 


187 


'!  ' 


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PinLAf>ELPHiA,  Ma  if  2,  1891. 

Sir:  Your  letter  of  tlie  Ist  instant  was  received  this  nioriiing,  and  at  once  trans- 
mitted to  the  attorneys  of  tlie  bank  and  of  the  Lncas  estate. 

I  inclose  herewith  letter  from  Mr.  Kead,  atty.  for  the  bank,  bearing  upon  the  case. 
I  telegraphed  its  purport  to  you  this  afternoon. 

I  leani  that  the  stipulation  which  the  estate  makes  is  that  the  seashore  pro]»erty 
shall  be  taken  by  the  bank  at  $500,000  (it  was  settled  for  at  $382,000).  If  this  call 
be  agreed  to  by  the  bank,  then  the  estate  will  recognize  its  liability  for  any  and  all 
debts  of  Mr.  Lucas  to  the  bank,  which,  so  far  as  the  books  of  the  bank  show,  amounts 
to  nearly  $1,000,000. 

8ome  of  the  stockholders,  especially  Mr.  McFadden,  whom  I  have  seen  to-night, 
are  opposed  to  allowing  $500,000  for  the  seashore  property,  claiming  that  only 
$362,000  should  be  allowed  therefor,  which  is  the  sum  named  in  the  transfer  of  the 
property  to  the  bank  as  stated  above. 

Kepresentatives  of  all  parties  in  interest  are  to  meet  at  the  bank  on  Monday,  the 
4th  iust.,  when  final  action  will  be  taken,  of  which  I  will  promptly  notify  you. 

I  shall  endeavor  to  have  present  at  the  meeting  as  large  a  representation  of  the 
stock  as  can  be  obtained. 
Very  respectfully, 

W.  P.  Drew, 
Nat,  Bank  Examiner. 

Hon.  E.  S.  Lacy, 

Comptroller  of  the  Currency,  Washingtonf  D.  C: 

.^  J^.  8. — It  is  impossible  to  state  with  any  degree  of  accuracy  what  the  Lucas  estate 
is  worth,  but  from  the  best  reports  I  have  been  able  to  obtain,  it  is  my  opinion  that 
there  ought  to  be  from  $200,000  to  $250,000  more  within  reach. 


fTelogr.ini.l 


Office  of  United  States  Attorney, 
Eastern  District  of  Pennsylvania, 

PhUadelphia,  May  2,  1890. 

Dear  Sir:  I  met  Mr.  Huey  and  Mrs.  Lncas  by  appointment  this  morning  at  ten. 
The  situation  was  discussed  at  length,  anrt  liually  1  retired  with  the  understanding 
that  I  was  to  have  an  answer  at  one  p.  m.  A  messenger  has  just  com©  from  Mr. 
Huey,  who  states  that  he  is  now  in  consultation  with  Mrs.  Lucas  and  others,  and 
that  he,  Mr.  Huey,  authorized  me  to  say  to  you  that  he  tliinks  the  matter  will  bo 
favorably  closed  on  Monday. 

Please  notify  the  Comptroller  of  the  Currency,  so  that  the  matter  maybe  left  open 
until  then. 

Yours  truly, 

JoiiN  R.  Read. 
Mr.  W.  P.  Drew, 

Bank  Examiner, 


Philadelphia,  May  S,  1891. 
Sir:  I  am  to  meet  at  10  o'clock  to-morrow  the  representatives  of  the  Lucas  estate 
with  their  final  proposition  as  to  settlement  of  the  claim  of  the  bank  against  the 
estate. 

If  undoubted  security  can  be  given  by  them  for  $200,000  at  least  in  addition  to  the 
values  already  turned  over  to  the  bank,  and  if  $200, (XK)  of  the  old  capital  can  be 
jdaced  in  escrow  by  the  shareholders,  I  shall  feel  that  the  new  capital  can  be  safely 
paid  in  and  the  bank  reopened  for  business. 

After  a  prolonged  consultation  with  U.  S.  Dist.  Atty.  Read  to-night,  we  have 
agreed  that  the  above  course  is  advisable. 

If,  on  the  contrary,  the  estate  should  be  unwilling  or  unable  to  furnish  the  amount 
stated,  Mr.  Read  advises  that  an  affidavit  be  made  by  me  at  once  lof>king  to  the  ar- 
rest of  Mr.  Marsh  and  Mr.  Lawrence,  a  former  clerk. 
1  will  report  result  promptly  to  you. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


May  4,  1891. 


H«m.  E.  S.  Lacey,  , 

Comptroller  of  Currency,  Washingfon,  J).  C. 
Please  defer  action  Keystone  Bank  until  I  see  you  at  your  house  t<might.     Please 
answer  to  my  office.  ^^^^  Bardslky. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  May  4,  1891. 


John  Bardsley, 

City  Treasurer,  Philadelphia,  Pa. 

Action  deferred  until  tomorrow. 


E.  S.  Lacey, 

Comptroller, 


By  the  Chairman: 
Q.  Did  Mr.  Bardsley  make  this  ^'^sit  to  you,  as  mentioned  in  his  let- 
ter under  date  of  May  4?— A.  It  will  be  shown  in  the  regular  order  of 
the  correspondence. 


[Telegram.] 

Hon.  E.  S.  Lacey,  _    ..     .       r.  /^ 

Comptroller  of  Currency,  Washington,  J).  O. 

Arrests  made  this  afternoon.    Hearing  on  Friday. 


May  6, 1891. 


W.  P.  Drew. 


Philadelphia,  May  4, 1891. 

Sir:  After  consultation  with  U.  S.  Dist.  Atty.  Read,  I  caused  this  afternoon  the 
arrest  of  Mr.  Marsh  and  Mr.  Lawrence,  c»f  the  Keystone  ^at.  Bank,  for  making  false 
reports  to  the  Comptroller  and  also  false  entries  to  deceive  the  exauimer. 

They  were  placed  under  $20,000  bail  each,  whi<h  they  will  be  pro)>ably  able  to 
nrocure,  for  a  hearing  on  the  8th  inst.  •     xv,    •     ^ 

The  dist  atty.  desires  the  originals  of  the  reports  to  the  Com].troller  tor  the  last 
three  years,  for  use  in  this  hearing,  and  1  have  asked  my  assistant,  Mr.  Jones  to 
visit  your  office  to-morrow  to  procure  these  reports  if  practicable.  Please  let  him 
have  them  if  not  inconsistent  to  do  so.  .    ,     ,      i 

It  will  be  necessary  to  compare  them  with  the  books  ot  the  bank. 

I  understand  that  Mr.  Bardsley,  who  started  this  afternoon  to  see  you  at  \\  ashing- 
ton  this  evening,  was  recalled  by  a  telegram  after  his  de]>arture  because  ot  the  arrest. 
Very  respectfully,  ^^  ^,  ^^^^^, 

Sat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  nashmgion,  J>.  C. 


Philadelphia,  May  4, 1891. 

Sir:  Permit  me  to  introduce  my  assistant,  Mr.  H.  C.  Jones,  who  calls  on  you  for 
the  purpose  of  procpring  the  originals  of  reports  of  condition  of  the  Keystone  Na- 
tional Bank  for  use  at  the  hearing  on  Friday  next  of  the  officials  who  were  arrested 
to-day,  as  stated  in  ray  telegram  and  letter.  Please  give  him  such  fiicilities  as  may 
be  necessary  and  oblige, 

Very  truly  your,,  W.P.Drew, 

Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


ti 

fW  il 


■  I      'J 


^\ 


■J 


188 


INVESTIGATION   OF    NATIONAT.    BANKS. 


INVESTIGATION   OF   NATIONAF.    BANKS. 


189 


■( '. 


Colonnade  PIotkl, 
Philadilphia,  Pa.,  May  4,  isyt. 
./i^^^l^^'        accord  with  my  despatch  to  you  of  this  morning,  I  left  Philadelphia 
at  4:41  this  p   m.,  and  had  requested  Mr.  Marsh  to  -o  with  m*  that  you  mi-ht  be 
advised  of  details     Mr  Marsh  did  not  meet  me  at  th7,  depot  and  I  left  withZt  him 
f^r  i/^'T!?-**  Baltimore  I  was  handed  a  despatch  informing  me  of  the  arrest 
ot  Mr.  Marsh  this  pm.   and  asking  my  return  home  at  once.    I  took  return  train  at 
Jialtimore  and  met  Mr.  Marsh  on  my  arrival  here. 

I  have  no  knowledge  of  why  the  arrest  was  made  to-day,  and  fear  the  effect  will 
be  bad  for  the  bank.     The  stockholders  have  called  a  mectii.g,  I  understand,  at  wl^c 
It  18  proposed  to  subscribe  an  equal  to  the  stock  that  is  not  to  be  surrendered  4!'?00  OOn 
and  the  stock   $800  000  that  is  to  be  surrendered  is  about  ready  trbeLan^^iS' 
J  IT 'A  ?  *''*'^'  with  the  Lucas  estate,  but  Mr.  Davis  sai<l  this  afternoon  thrthe  wa^ 
disposed  to  go  on  without  it  in  some  way. 

fj'''^^±l^^'''*'^'''\^'^^''^^^^y\^^^^^^^  in  a  fairway  for  settlement. 

O  course  your  patience  has  been  greatly  tried,  but  I  wante<l  ver/much  to  confer 
with  you  and  to  state  the  bearings  as  it  will  affect  other  interests,  and  after  lavin- 
the  whole  matter  before  you  to  ask  if  you  could  see  your  wav  clej  r  to  give  the  bank 
another  day  or  two.  If  you  would  <lo  me  the  personal  favo/to  give  me  a  chance  to 
TiiT'i*'*?V'"TJ"?^*.^*  y«'H-  liouse,  1  will  come  down  and  bring  Mr.  Marsh,  who 
still  feels  it  his  duty  to  do  every  possible  thing  in  his  power  to  aid  the  bank 

It  would  be  a  great  relief  to  me  if  you  W(»uld  favor  me  with  a  despatch  to-morrow 
morning  saying  you  will  defer  action  until  Wednesdav.  and  I  will  then  see  von  to- 
morrow evening  at  your  house.  ^  > 

LookiTig  Jit  it  from  all  points  I  do  indeed  think  it  will  be  wisd(»m  to  wait  and  ner- 
mit  me  to  give  you  the  latest  ditails.  ^ 

My  address  is  City  Hall,  Phila. 

With  great  respect,  I  am,  very  truly,  &c., 

Mr.  Lacey.  ,  .  -^^"^  Bardslev. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency 
Mr.  John  Bardsley,  Washington,  May  5,  mi. 

City  Hall,  Philadelphia,  Pa.: 


Letter  fourth  received.     I  will  be  at  home  this  ovenin"- 


E.  S.  Lacey, 

Comptroller. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency 

.      ,    ^^    «   ^  Washington,  n.  r.,  5,  sl  '91. 

Received  of  E   S- Lacey,  Comptroller  of  Currency,  1(5  reiM>its  of  condition  of  Key- 
A^tV^ohn  R   Read  '         '  *"*  ^"^^  ^^'  ^^^^'  inclusi've),  for  use  of  IT.  S.  Dil 

Harry  C.  Jones, 
Asst.  W.  r.  I)rm\  Nat.  Bk.  Ex. 


[Telegram.] 


Hon.  E.  S.  Lacey,  ^^^^  ^'  1^^^- 

Comptroller  of  Currency  Washington,  D.  C: 

msTZufwithul  '^^P^'^*^^'  ^"^  Htockholders  Keystone  Bank  will  call  on  you 

John  Bardsley, 

J.  O.  Bowman,  and  others. 


On  May  5, 1  wrote  Mr.  Drew  a  letter  in  whicli  the  suggestion  of  a 
receiver  was  made. 

Q.  Who  was  that! — A.  Il^elson  F.  Evans. 

Q.  Does  the  letter  state  how  he  came  to  be  mentioned  ? — A.  It  does 
not. 

Q.  Who  did  it  come  from  ? — A.  Mr.  l!^ettIeton,  Assistant  Secretary 
of  the  Treasury. 

Q.  Evans  was  an  oliicer  of  some  bank? — A.  He  was  a  director  of  the 
Spring  Garden  National  Bank,  which  failed  a  few  days  later. 

Treasury  Departaient, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  5,  1891. 

Dear  Sir:  Mr.  Nelson  F.  Evans,  president  of  the  Spring  Garden  Insurance  Com- 
pany, has  been  recommended  as  a  proper  person  for  api)ointment  as  receiver  of  the 
Keystone  National  Bank. 

Will  you  investigate  the  records  of  the  association  and  inform  me  by  early  mail 
as  to  whether  he  is  a  creditor,  stockholder,  or  debtor  of  said  bank,  and  further,  as  to 
whether  any  reasons  are  known  to  you,  of  any  kind  whatever,  which  would  render 
it  improper  or  inexpedient  to  issue  a  commission  to  him. 
Very  repectfuUy, 

E.  S.  Lacey, 

Comptroller. 
Mr.  W.  P.  Drew, 

Examiner  in  charge,  Keystone  National  Bank,  Philadelphia,  Pa. 


Philadelphia,  May  6,  1891. 

Sir:  Your  letter  of  the  Tith  instant,  referring  to  Mr.  Nelson  F.  Evans  in  connection 
with  the  receivership  of  the  Keystone  National  Bank,  is  received. 

Mr.  Evans  is  one  of  our  most  respected  citizens  and  a  very  enterprising,  energetic 
business  man.  He  is  an  ex-president  of  the  *^  Young  Men's  Christian  Association" 
here,  is  president  of  ''The  Spring  Garden  Insurance  Co.,"  a  successful  institution, 
and  a  leading  director  in  ''The  Spring  Garden  National  Bank."  In  ability,  skill, 
knowledge  of  business  and  credits,  uprightness  of  character  and  popularity,  he  is 
conspicuous.  He  is  actively  interested  in  several  enterprises,  some  of  which  are 
speculative,  is  a  pretty  good  borrower  at  the  banks,  and  is  thought  at  times  by  some 
to  be  rather  too  much  extended.  He  is  an  iiidorser  on  paper  now  under  discount  at 
the  Keystone  National  Bank  for  some  $17,000,  as  by  the  appended  list  above.  He  is 
generally  a  large  boiTower  from  the  Spring  Garden  National  Bank,  as  Avill  be  seen 
by  reference  to  my  last  report  on  that  bank.  If  the  above  considerations  should  not 
be  regarde«l  as  an  objection,  he  would  make  a  good  receiver  and  would  actively 
labor,  I  believe,  for  the  very  best  interests  of  all  concerned. 

Matters  at  the  bank  are  at  the  usual  standstill.  A  committee  are  earnestly  at 
work,  with  some  considerable  encouragement,  to  secure  from  the  stockholders  a  fund 
which  shall  be  sufficient  to  enable  the  bank  to  eftect  voluntary  liquidation.  This 
is  the  result  of  a  visit  which  a  delegation  made  to  you  last  night,  and  which  they 
report  was  regarded  with  favor  by  you.  I  think  that  by  to-morrow  night  it  will  be 
definitely  known  whether  such  a  fund  can  be  secured. 

The  ''hearing"  of  Mr.  Marsh  and  Mr,  Lawrence  will  be  had  at  4  o'clock  ]>.  m.,  on 
Friday,  the  8tli  instant. 

The  papers  here  are  filled  with  all  sorts  of  rumors  aftecting  the  liberty  and  good 
name  of  many  of  the  directors  of  the  bank,  but,  as  far  as  I  can  now  see,  there  is  not 
sufficient  evidence  to  warrant  the  arrest  of  any  others  connected  with  the  bank  be- 
sides the  names  given  above. 

I  received  today  the  inclosed  letter  from  a  committee  of  city  councils,  asking 
permission  to  examine  into  the  account  of  the  city  treasurer.  I  have  informed  the 
writer  of  this  reference  to  you.  I  have  not  seen  Mr.  Bardsley,  and  do  not,  of  course, 
know  what  his  feeling  in  regard  to  this  matter  may  be,  but  I  believe  he  will  not  de- 
sire such  a  visitation,  and  I  can  not  see  what  good  end  can  be  subserved  by  permit- 
ting this  inspection.  Feeling  here  is  very  high  just  now,  and  a  delay  in  this  matter 
would,  in  my  judgment,  be  best  even  if  it  would  not  be  best  to  decline  to  grant  the 
pennission. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner, 

Hon.  E.  S.  Laoky, 

Co^nptroller  of  the  Currency,  Washington,  D.  C, 


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190 


INVESTIGATION   OF   NATIONAL    BANKS- 


INVESTIGATION    OF   NATIONAL   BANKS 


101 


i. 


'     i.K«'y»iuJU',  Natioual  Bank.    X.  F.  Evans.] 

S.  p.  M.  Taskcr 1,  IKX)       due  May  22  C.  U. 

Van  Guu(leu&  Youn^ 1,650                June  24  C.  H. 

Do ' 2,50()                         29  C.H. 

S.  P.  M.  Tasker 3, 300                July  10  C.H. 

9,  a^o 

Bradlord  Hills  L.  Co 2, 000               May  13  C.  H. 

"               3,000              Junel3  C.H. 

"               3,0(X)                       20  Bank 

8, 000 

W.  P.  Drkw, 

Nat.  Bank  Examiner. 
Philadeli'hia,  May  C»,  1801. 


Philadelphia,  May  0, 1891. 

Sir:  Since  writiuj;  you  to-ni«;bt  in  regard  to  the  name  mentioned  in  your  letter 
of  the  5th  instant,  as  a  candidate  for  the  receivership  of  the  Keystone  National  Bank, 
have  thouglit  that,  if  the  facts  stated  should  be  viewed  by  you  as  disqualifying  that 
gentleman,  1  might  perhaps  be  pardoned  for  suggesting  a  name. 

Mr.  H.  L.  Warren  has  been  visiting  me  here  for  a  long  time,  and  would,  in  my 
o))ini(m,  make  a  capital  selection. 

He  is  in  successful  business  here,  nearly  40  years  old,  a  good  accountant,  and  an 
able  and  accomplished  man,  thoroughly  responsible,  and  could  give  strong  business 
and  other  references.  I  would  like  to  have  you  see  him.  I  could,  and  most  willingly 
would,  render  him  all  assistance,  both  personal  and  official. 

Please  consider  this  sugge8ti<ni,  unless  you  have  practically  decided  the  matter,  or 
have  other  views  in  regard  to  it. 

Mr.  Warren  is  niy  son-in-law. 

If  you  should  so  desire,  I  could  take  the  place  temporarily,  at  least,  attending  to 
the  supervision,  official  and  otlierwise,  without  interfering  with  my  regular  work. 
In  that  case  he,  or  another  of  my  assistants,  would  cooperate  with  me. 

Pardon  this  liberty. 

Very  respectfully, 

W.  P.  \)\m\\\ 

National  Bank  Examiner. 
Hon.  E.  S.  Lacky, 

Comptroller  of  the  Currency,  Washington^  D,  C, 

Q.  Will  you  suspend  the  examination  of  tiie  coiTesiuni deuce,  and  tell 
us  whether  you  were  called  upon  at  your  house  at  the  time  mentioned 
in  the  telegram  of  May  5  by  representatives  of  the  stockholders  and 
by  Bardsley,  and  if  so,  at  what  date  did  that  interview  take  place  ? — 
A.  There  were  seven  prominent  business  men  who  called  upon  me  on 
the  evening  of  the  oth  of  May,  in  accordance  with  the  telegram  which 
I  have  read.  I  can  not  recall  the  names  of  all,  but  Messrs.  John  C. 
Davis,  John  O.  Bowman,  and  H.  W.  dray  and  John  Bardsley  I  re- 
member. 

Q.  Mr.  Davis  is  the  gentleman  who  has  been  talked  of  as  president 
of  the  bank?— A.  Mr.  Davis  Avas  president  of  the  Petroleum  Exchange, 
and  a  business  man.  Mr.  Bowman  was  an  attorney  representing,  if  I 
recollect  aright,  a  considerable  number  of  depositors  or  stockholders,  I 
have  forgotten  which.  Mr.  Gray  was  a  creditor  of  the  bank  from  whom 
we  had  a  letter  some  time  before.  Mr.  Bardsley  was  treasurer  of  the 
city  of  Philadelphia,  as  you  will  remember.  The  other  tliree  I  can  not 
recall. 

Q.  Please  state  what  occurred  at  that  interview.— A.  Tlu»se  gentle- 
men, with  one  excei)tion,  were  in  favor  of  delay  in  tlie  appointment  of 
a  receiver,  believing  tliat  there  was  still  hope  of  the  resumption  of  the 
bank.     1  frankly  told  them  that  I  did  not  believe  it  was  practicable, 


but  it  was  possible  that  I  might  withdraw  the  receiver  after  his  ap- 
pointment, and  the  bank  could  go  into  voluntary  liquidation.  They 
were  in  favor  of  delay.    Mr.  Gray  thought  it  better  to  appoint  a  re- 

ceiver. 
Q.  I  would  like  to  hear  the  substance  of  the  conv(?rsatioii,  oi-  tlie 

statements  that  were  made  as  to  the  assets  of  the  bank,  as  I  suppose 
those  matters  were  discussed.— A.  There  was  no  particulai'  discussion 
as  to  the  value  of  the  assets  of  the  bank.  It  was  then  sul>stautially 
conceded  that  there  were  about  $200,000  more  assets  than  would  pay 
the  debts,  and  the  ])ropositiou  continued  to  be  made  to  provnlc  tliree  or 
four  hundred  thousand  dollars  more  stock  to  be  paid  in  to  bring  the 

stock  up  to  the  original  amount.  *     *     xr      • 

Q.  When  you  speak  of  debts,  you  do  not  include  stock!— A.  :No,  sir; 
exclusive  of  stock.  Early  in  the  conversation  I  told  them  I  had  made 
up  my  mind  to  appoint  a  receiver,  and  that  I  should  do  so  as  soon  as  I 
could  tind  the  right  man;  but  even  if  a  receiver  were  apiK)inted,  I  told 
them  that  if  they  could  make  such  arrangements  as  would  in-oMde  for 
the  payment  of  the  depositors,  I  would  withdraw  the  receixcr  and  per- 
mit the  bank  to  go  into  liquidation,  and  that  would  be  what  they  wished 

to  accomplish. 

Q.  Was  there  any  discussion  at  that  time  about  the  liabilities  ot  the 
bank?— A.  There  was  no  discussion  of  the  liabilities  of  the  bank  to 
Bardsley  on  account  of  due  bills.  That  was  not  known  at  that  time. 
He  never  did  claim  that  until  after  his  arrest,  which  oc<;urred  some  time 
later.  Nobody  knew  that  any  such  liability  existed  except  Bardsley 
and  Marsh.  No  such  information  had  ever  come  to  me,  or  the  examiner, 
or  anyone  eLse,  and  I  had  no  communication  indicating  that  there  was 
any  such  liability  existing  on  account  of  due  bills. 

Q.  Was  this  question  of  the  stock  which  had  been  in  the  possession 
of  Mr.  Wanamaker,  and  which  was  claimed  to  be  an' overissue,  discussed 
at  that  meeting?— A.  If  that  was  discussed  I  do  not  remember  it.  It 
is  quite  likely  it  was.  It  was  a  long  conversation.  We  spent  an  hour 
or  more  in  discussing  the  various  phases  of  the  matter;  possibly  it  was 
mentioned,  though  I  do  not  remember  anything  as  to  that.  I  had  a 
great  deal  of  talk  with  a  great  many  persons. 

Q.  I  want  to  keep  it  down  to  that  conversation. — A.  i  can  not  re- 
member what  was  said  at  that  particular  time,  for  the  reasons  indicated. 

Q.  Was  there  any  discussion  at  that  time  with  regard  to  the  person 
who  should  be  selected  as  a  receiver  ?— A.  1  can  not  recall  any  con  versa 

tion  in  reference  to  that. 

Q.  Was  any  inquiry  made  by  you  in  regard  to  this  Mr.  Evans? — A. 
I  think  not,  because  I  had  determined,  as  soon  as  1  received  the  letter 
from  Mr.  Drew  stating  that  he  was  a  debtor  of  the  bank,  that  I  would 
not  appoint  him;  so  I  do  not  think  Evans  was  discussed,  although  he 
may  have  been. 

Q.  Do  you  recall  anything  that  occurred  at  that  time  in  regard  to  the 
bank  and  its  affairs  beyond  what  you  have  stated? — A.  I  do  not. 

By  Mr.  WiKE : 

Q.  I  would  like  to  inquire  what  relation  those  three  men  bore  to  the 
bank? — A.  They  were  not  connected  with  the  bank.     This  was  a  com 
mittee  appointed  by  the  depositors,  consisting  of  seven  prominent  busi- 
ness men. 

Q.  They  were  creditors?— A.  They  were  creditors,  but  not  stockhold- 
ers; I  do  not  think  any  were  stockholders. 

Q.  Do  you  know  what  relation  these  other  three  men  whose  names 


i 


192 


INVESTIGATION   OF   NATION  A  I.   BANKS. 


you  have  uot  mentioned  bore  to  the  subject  matter  under  discussion!— 
A.  I  suppose  they  were  only  interested  as  creditors  wanting  an  early 
settlement. 

Under  date  of  May  6  Mr.  Drew  addressed  me  a  letter  which  was 
written  the  same  date  of  the  other  one,  in  which  he  recommended  his 
son-in-law  for  appointment  as  receiver.  At  this  point  I  want  to  correct 
a  8Uf?gestion  that  I  made  in  reply  to  a  question  of  the  chairman,  and  it 
is  that  this  consultation  with  this  committee  was  on  May  5,  and  I  did 
not  receive  this  letter  in  relation  to  Evans  being  a  debtor  until  after 
that  date,  so  that  J  did  not  have  that  faet  in  my  mind  at  that  time, 
it  was  the  next  day  that  1  got  that  information. 

By  the  Chairman  : 

Q.  After  making  that  correction,  can  you  state  whether  you  made 
any  inquiry  of  those  gentlemen  about  Evans,  or  his  fitness  for  the  place 
of  receiver?— A.  if  1  did,  I  have  forgotten  it.  Unusuallv,  in  the  ap- 
pomtment  of  a  receiver,  i  address  such  a  letter  as  this  to  the  examiner 
before  I  really  consider  a  man,  in  order  to  ascertain  whether  he  bears 
any  such  relation  to  the  bank.     That  was  done  in  this  case. 

Witness  then  read  letter  and  telegiam  as  follows: 

Common  Colncil, 
Philadelphia,  May  6th,  '91. 
Dear  Sir:  The  committee  of  couucils  in  the  matter  of  city  deposits  in  the  Key- 
stone and  other  banks  respectfully  request  that  they  hv  allowed  to  examine  the 
account  of  the  city  treasurer  as  contained  among  the  books  and  papers  in  the  Key- 
stone Bank.  '^  '^  •' 
Yours,  respectfully, 

VVm.  Van  Osten. 

„,   „   , ,  Chaii-man  of  Committee. 

A\ .  P.  Drkw, 

Bank  Examiner. 

(Indorsement):  Respectfully  referred  to  Hon.  E.  S.  Lacey,  Comptroller  of  Cur- 
rency, Washington,  D.  C,  for  authority.     Please  see  my  letter  of  this  date. 

W.  P.  Drew, 

^  ,,  yut.  Bank  Examiner. 

Philadelphia,  May  6,  1891, 


CUAXK,  Paris  &  Co.,  Bankers, 

Washington,  T).  C,   May  6,  1891. 

Dear  Sir:  Understanding  that  a  receiver  lias  been  or  is  about  to  be  ajipointed  for 
the  Keystone  National  Bank  of  Phila<lelphia,  \\v  beg  to  respectfully  call  to  your 
favorable  attention  and  consideration  the  fact  that  on  March  19th  we  forwarded  to 
said  Keystone  National  Bank  a  draft  on  the  Fourth  8t.  National  Bank  for  $1,990  for 
collection  for  our  account;  that  said  bank  was  closed  by  your  order  at  the  hour  for 
opening  for  business  on  the  20th;  that  those  in  authority  at  Keystone  National  Bank 
at  an  ^^arly  hour  on  the  20th,  and  before  banking  hours,  caused  the  aliovc-mentioned 
check  to  be  listed  in  the  clearance  checks  of  the  19th;  the  same  was  paid,  and  we 
aver  could  not,  nor  should  not  have  been  placed  at  our  credit  prior  to  your  order 
closing  said  bank . 

We  therefore  resi>ectfully  represent  that  we  should  not  be  held  to  be  general 
creditors,  but  that  the  within  amount,  $1,990,  be  returned  t^  us,  not  being  part  of 
the  bank's  assets  on  the  business  day  of  your  closing.  The  bank  is  otherwise  in- 
debted to  us  $13.63. 

We  submit  these  facts  in  the  full  assurance  that  w©  will  receive  abundant  equity 
at  your  hands. 

Yoars,  very  respectfully, 

,„^    ^  Crane,  I'aims  A  Co. 

The  Comptroller  of  Currency, 

JVashinffton,  D,  C, 


INVESTIGATION   OF   NATIONAL   BANKS. 


[Personal.] 


193 


Washington,  D.  C,  May  6th,  1891. 

Dear  Mr.  Lacey  :  I  called  at  your  residence  this  evening  to  show  you  the  inclosed 
t<*lcgram  which  was  received  too  late  for  me  to  see  you  at  the  Dept.  The  telegram 
is  from  my  brother,  who  is  the  editor  and  principal  OAvner  of  The  Star  of  Phila.  Mr. 
Smith,  to  whom  he  alludes,  is  the  gentleman  who  wrote  me  the  letter  about  the  Key- 
stone Bank  which  1  showed  you  week  before  last.  I  take  the  liberty  of  writing  you 
thus  hurriedly  for  the  reason  that  I  would  like  you  to  consider  my  name  in  coiincr- 
tion  with  the  receivership  of  the  Keystone  Bank  before  deciding  on  an  ai)point't. 

You  will  remeirtber  I  resigned  the  clerkship  of  the  House  P.  O.  Comme.  to  become 
the  chief  clerk  of  the  Dept.  of  Justice  under  Atty.  Gen'l  Brewster.  I  remained  in 
that  position  until  the  Kej^ublicans  secured  a  majority  in  the  Senate  in  Dec,  1883, 
when  I  was  elected  the  chief  executive  clerk  of  that  body,  which  position  I  still 
hold.  I  am  also  a  part  proprietor  of  the  Phila.  Star,  and  its  Washington  corrspdt. 
If  you  care  to  consider  my  name  I  can  furnish  you  with  scores  of  first-class  endorse- 
ments from  Phila. 

If  you  have  time  to  peruse  the  new8pax)er  slips  in  the  inclosed  envelope  you  will 
see  that  I  am  not  unknown  to  the  Phila.  business  community. 

I  will  call  at  the  Dept.  to-morrow  to  see  you.    I  have  the  honor  to  be, 
Very  truly,  yours, 

James  R.  Young. 

Hon.  Edward  S.  Lacey, 

Comptroller  of  the  Currency. 


[Telegram— confidential] 

May  6,  1891. 
James  R.  Young, 

1506  Q  Street : 

Make  immediate  arrangements  secure  yourself  receivership  bank  about  which 
Smith  wrote.     See  Lacey. 

Beveridge. 

Q.  Who  is  "Beveridge"  who  signs  the  letter  inclosed  to  you  by  Mr. 
James  R.  Young? — A.  I  do  not  know. 

Q.  Who  do  you  understand  it  to  be? — A.  I  rather  conclude  that  it 
is  his  brother. 

Q.  Then  it  is  his  first  rather  than  his  last  name? — A.  I  concluded 
that  was  the  case,  but  I  did  not  know  who  "Beveridge"  was. 

By  Mr.  Gate  : 

Q.  Is  this  James  R.  Young  the  gentleman  who  is  Executive  Clerk  of 
the  Senate  and  had  trouble  about  the  executive  sessions  ? — A.  Yes,  sir. 

By  Mr.  Brosius  : 

Q.  To  whom  was  that  addressed? — A.  To  James  R.  Young. 

The  Chairman.  It  was  transmitted  to  the  Comptroller  with  Young's 
letter.  (To  the  witness.)  Young  speaks  of  having  an  interview  and  of 
showing  you  a  letter  from  a  Mr.  Smith.  Do  you  recall  that  interview  ? — 
A.  I  can  not  recall  any  part  of  that  interview,  except  I  tliink  he  met 
me  on  the  street  casually;  that  he  had  received  a  letter  from  somebody, 
probably  Smith,  in  whicifi  Smith  suggested  to  him  that  he  apply  for  this 
receivership. 

Q.  Mr.  Smith\s  letter  was  shown  to  you? — A.  I  am  not  sure  whether 
it  was  or  not. 

Q.  Do  you  know  who  Smith  was? — A.  Ko,  sir;  I  have  never  known 
who  Smith  was. 

Witness  read  letter  and  telegram  as  follows : 

Phii/a,  May  7th  1891. 

My  Dkar  Friend:  Remembering  your  kind  expression  of  Apl.  20th,  I  would  sug- 
Jicst  the  opportunity  has  occurred  whcm  you  can  remember  and  serve  me  by  appointing 
lue  receiver  for  the  Keystone  National  Bank.  I  assume  your  favorable  recommen- 
dation to  the  Comptroller  of  the  Currency  would  fix  it. 

3792 13 


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194 


INVESTIGATION    OF    NATIONAL   BANKS. 


If  too  late  for  the  Keystone,  keep  mo  iu  mind  for  the  next  disaster.  I  can  j^ive  my 
■whole  time,  ener^es,  &c.,  to  whatever  I  undertake,  and  have  had  both  experience 
and  success  in  unraveliujj:  and  settling  a  former  bankrupt  estate  of  over  a  million 
dollars,  closing  it  in  a  twelvemonth. 

With  renewed  assurances  of  liigh  regard,  1  remain,  ever  your  friend, 

/^  „,,.,.,.       ^    .  L.   M.   WlULLDlN. 

(Care  Whilldm,  Deitz  &  Co.,  126  Chestnut  St.,  PhiFa.) 
Hon.  Chas.  Foster. 


ITelegram.J 


,,       _   ^   ^  May  7,  18111. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Waahinyton,  JJ.  C: 

Party  referred  to  in  my  letter  olyects  to  the  examination  at  present. 

W.  P.  Drew. 


Treasury  Department, 

Office  of  the  Comptroller  of  the  Currency, 

,„   _  _  Washinyton,  May  7,  ISOl. 

,W.  P.  Drew,  "^    ' 

Examiner  in  charye  Keyatone  National  Bank,  rhiladelphia,  Fa.: 
Your  reply  to  my  letter  of  lifth  instant  miscarried.    Send  duplicate  immediately. 

E.  S.  Lackv, 

Comptroller. 


i  A. 


New  Post-Office  Building, 

Philadelphia,  May  7,  JS91. 

Sir:  Your  telegram  of  to-day,  stating  that  my  letter  to  you  of  the  (>th  instant  had 
miscarried  and  requesting  a  duplicate  of  the  same,  was  received  at  5  o'clock  p.  in. 

Unable  to  give  you  a  duplicate,  as  I  kept  no  full  copy.  I  can  only  repeat  the  sub- 
stance of  the  letter. 

Mr.  Nelson  1\  Evans  is  one  of  our  most  respected  and  energetic  citizens,  trained 
to  business;  is  president  of  the  Spring  Garden  Insurance  Co.,  a  successful  corpora- 
tion, and  a  leading  director  in  the  Spring  Garden  National  Bank.  He  was  formerly 
president  of  the  Young  Men's  Christian  Association  here. 

He  is  interested  in  several  enterprises,  some  regarded  its  somewhat  speculative, 
and  is  generally  a  pretty  free  borrower  from  the  banks.  He  is  indorser  on  some 
$17,000  paper  now  under  discount  by  the  Keystone  National  Bank.  He  would  make 
an  ethcient  and  popular  receiver,  and  would  co-o])erate  faithfully  and  heartily  in  any 
effort  looking  towar<ls  the  good  of  the  bank,  whether  it  involved  his  retirement 
or  not. 

I  also  mentioned  that  a  c(»mmittee  of  councils  had  requested  permission  to  exjnniue 
the  account  of  tlie  city  treasurer  as  on  the  books  of  the  bank,  and  I  referred  the  letter 
to  you  for  your  action. 

Mr.  Bardsley  desires  me  to  say  that  he  hopes  you  will  not  give  the  jMjrmission  at 
present,  at  least. 

As  to  Mr.  Evans'  relations  with  the  Spring  Garden  National  Bank,  please  see  my 
last  report  on  that  association. 
Very  resp(;ctfully, 

W.  P.  Drew, 

2s at.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  fVashinytonf  D,  C. 


[Telegram.] 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C: 

Mr.  Bowman  will  see  you  this  evening,  representing  stockholders,  with  i)lan  f(»r 
voUmtary  liquidation. 

W.  P.  Drew. 


INVESTIGATION    OF    NATIONAL   BANKS. 


195 


On  May  8,  1891,  I  received  a  telegram  «igued  ^^A.  13.  N.,"  and  dated 
at  Philadelphia. 

[Tt'lvgTiUII.] 

PjnLAL>ELi'iiiA,  Mays,  1S91. 
Mon.  E.  S.  Lacey, 

Complrollcr  of  the  Currency,  Treasury  Department,  Washinyton: 
Mr.  Evans  r<M][Ucsts  that  his  name  be  not  considered  further. 

A.  B.  N. 

Q.  Was  that  from  Secretary  Nettleton? — A.  I  suppose  so. 

Q.  What  was  the  date  of  the  failure  of  the  Spring-  Garden  Bank? — 
A.  It  was  between  the  1st  and  the  4th  of  May. 

Q.  It  was  prior  to  the  8  th  ? — A.  Yes,  sir.  V  won  hi  state  that  Mr. 
Yardley  was  appointed  on  the  8th  before  these  communications  which 
I  have  just  read  reached  me. 

Witness  read  letters  and  telegrams  as  follows : 

[Telegraui.    By  private  wh'e.] 

Philadelphia,  Pa  ,  May  Sth,  1S9U 
To  Comptroller  Lacey, 

TreaHury  Department : 

I  would  recommend  the  appointment  of  Richard  \V.  Clay,  e.s(j.,  president  of  the 
Solicitors'  Comi>any,  of  Philadelphia,  as  receiver  of  the  Keystone  Bank. 

Thomas  B.  AVanamaker. 


Treasury  Department, 
Office  of  Comptroller  of  the  Cirrency, 

Washington,  1).  C,  Matf  S,  1801. 
Messrs.  Crane,  Parhis  «fc  Co., 

Washington,  D.  C. : 

Gentlemen:  Your  letter  of  the  6th  instant  is  receivtnl,  referring;  to  a  draft  for- 
warded by  you  to  the  Keystone  National  Bank  of  Philadelphia  on  the  day  preceding 
the  suspension  of  the  bank,  such  draft  being  availed  of  on  the  following  day  in 
liquidation  of  the  bank's  liability  through  the  clearinghouse. 

A  receiver  has  not  yet  been  appointe<l,  but  when  an  ap]>ointment  is  made  the 
receiver  will  be  instructed  to  give  your  matter  prompt  attention. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


">:} 


i'''! 


%\ 


I 


i  ;J 


The  Citizens'  Trist  A:  Surety  Co., 

Philadelphia,  May  Sth.  1891. 
Mr.  Comptroller:  The  Keystone  National  Bank  and  the  Si)ring  Garden  National 
Bank  of  this  city  having  failed,  rre8i)ect fully  present  the  name  of  this  Tbe  Citizens' 
Trust  and  Surety  company  for  ajipointment  to  a  receivership.     Mr.  .T.  F.  Hillman, 
of  the  lirm  of  Mess.  Wananiak<^r  an<l  Brown,  is  in  our  board  of  dire<tor8.     1  am  my- 
self well  known  to  the  Postmaster-General,  and  the  trust,  if  ((unmitted  to  our  care, 
will  be  faithfully  administered.     It  is  <iuite  likely  that  Mr.  W.  II,  Waiuimaker  has 
advised  General  Nettleton  in  our  interest;  if  this  is  so,  the  general  will  doubtless  be 
able  to  inform  you  about  us.     As  vfc  have  the  i)lant,  we  are  in  good  jwsition  to  per- 
form the  duties  and  work  in  the  best  manner. 
With  great  respect,  I  am,  Mr.  Comi>troller, 
Very  truly,  yours, 

John  Huggari>, 
President  Citizens'  Trust  .V-  Sureitf  Co. 
General  Lacey, 

Washinyton^ 


V 


I' 


-'\ 


'I 


106 


INVESTlGATlOxN    OF    NATIONAL    BANKS. 


,,  .  ,,  ^,      ,  "Philadklvui A,  May  S,  1S91. 

My  Deak  x\lR.  Lackv: 

Owiii«r  to  the  unfortuiiiitc  couditioii  of  the  '^Keystom;  National  Hank"  it  \h  sup- 
posed a.  receiver  will  Im^  ajipoiuted  by  you.  In  that  event,  I  desire  to  reeommend  to 
you  the  appomtnuut  of  my  personal  friend  Mr.  James  R.  Voun<r,  a  citizen  of  Phiht- 
dell»Iiia,  whose  occupation  is  executive  clerk  of  the  Senate  and  correspondent  in 
Washington,  as  you  know. 

Mr.  Youn«;  is  very  competent  for  the  duty  of  the  receivership,  and  his  appoint- 
ment would  give  juneat  satisfaction  in  rhihuh>lphia.     I  do  sincerely  hope  you  will 
appoint  him.   It  will  he  not  only  a  personal  favor  to  lue,  but  will  please  our  citizens 
I  am  y<mrs  truly, 

,,       ,,  ^,  ^  Chas.  O'Nkill. 

Hon.  Ldwauj)  H.  Lacey, 

Comptroller  of  the  Curreiuy. 

Nelson  Evans  will  nev«'r  do  for  receiver  of  the  Keystone  N.  B.     He  is  too  deei)ly  in- 
terested in  souu^  of  the  loans,  and  is  also  a  director  in  the  Spring  Garden  N    B 
which  was  closed  to-day.  ^       »  •      •> 

The  party  whose  <ard  is  inclosed,  if  he  would  accept  it,  he  would  be  a  good  party. 

AA?iV''*^'T?V*^"'**'"*'  ^'*  ^^"'^  ^®**^^-    ^^^^^  '"^''^  inclosed  was  the  business  card  of 
William  M.  Gremer,  note  broker,  of  Philadelphia,  Pa. 


The  Fourth  Street  National  Bank, 

PInladelphia,  May  Sth,  t,901. 
Dear  Sir:  I  am  told  that  Mr.  Nelson  F.  Evans  has  declined  the  appointment  as 
receiver  of  the  Keystone  National  Bank  of  Philadelphia,  and  I  also  hear  that  Mr 
WiJJiam  T.  liars,  of  this  city,  is  now  an  applicant  for  the  j)08ition  (I  believe  throiiirh 
the  courtesy  of  Mr.  Wanamaker).  It  goes  without  saying  that  Mr.  WanamakeV's 
endorsement  of  Mr.  Tiers  should,  in  all  respects,  be  quite  sutttcient:  but  if  my  assur- 
ance to  you  of  Mr.  Tiers'  individual  popularity  and  fitness,  so  far  as  I  am  able  to 
iu<ige,  is  ot  any  value,  I  take  great  jdeasure  in  giving  the  same. 

In  one  respect,  Mr.  Tiers  would  have  materially  the  jwlvantage  over  most  api>li- 
cauts— that  is,  in  his  extensive  knowledge  and  experience  in  real-estate  matters— and 
I  understand  a  very  large  proportion  of  the  assets  of  the  Keystone  National  Bank  are 
now  in  that  form  of  property. 
Yours,  very  truly, 

XT       T.  c!    T  S.  F.  R.  Tyler,  Pt. 

Hon.  E.  S.  Lacey,  ' 

Comptroller  of  the  Curreney. 


Law  Offices,  Rooms  545  to  550  Drkxel  Building, 

J'h  i  fa  (lelph  ia,  May  8,  JS9L 
Dear  Sir:  lam  advised  that  Mr.  Evans  has  declined  to  allow  his  name  to  be  con- 
sidered m  connectum  with  the  receivership  of  the  Keystone  Bank,  and  that  Mr.  Wm. 
I .  liers  has  been  suggested  by  a  large  number  of  the  depositors  and  stockholders  as 
a  man  who  would  be  entirely  acceptable  to  them.  I  have  been  waited  ui)on  bv  a 
number  of  them  this  afternoon  to  know  whether  1  would  not  coincide  with  theni  in 
the  thought  of  the  wisdom  of  the  choice.  I  said  that  I  did  most  cordiallv,  for  I  have 
known  Mr.  Tiers  for  a  number  of  years  as  an  active,  intelligent  businessman  of 
present  means  and  leisure,  and  that  I  did  not  know  of  anv<uio  who  could  be  relied 
np<m  more  thoroughly  to  attend  to  the  business  of  the  position.  Thev  asked  if  I 
would  write  this  to  you,  and  I  said  that  I  wouhl. 

I  represent  a  large  number  of  shareholders  and  some  dejtositors,  and  I  speak  for 
them  when  I  say  that  the  appointment  would,  I  am  quite  sure,  be  a  very  satisfactory 

Very  respectfully, 

.,  ^  Saml.  B.  Huey. 

Comptroller  of  the  Currency, 

Washington  D,  (7. 


INVESTIGATION   OF   NATIONAL   BANKS. 


197 


Keystone  National  Bajsk, 

„       „   ^  Phihiffelphia,Mav  8,  189t. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washingtori,  1).  C: 
Sir:  This  will  introduce  to  you  Mr.  John  C.   Bowman,  who  represents  the  stock- 
holders of  this  bank,  who  are  endeavoring  to  effect  voluntary  liquidation. 

He  desires  some  instructions  in  regard  to  the  matter,  and  is  commended  to  vour 
kind  attention. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 


[Telegram.] 


^    „      ^  Washington,  D.  C, 5,9, 1891. 

Comptroller  Lacey, 

Treasury  Department,  Washington: 

The  appointment  of  Mr.  J.  R.  Young  as  receiver  for  Keystone  Bank  will  meet  with 
approval. 

John  E.  Reyburn, 

4  District  J  Pa. 


[Telegram.] 

TT      x^  o   T  Mays,  189L 

Hon.  E.  S.  Lacey, 

Comptroller  Currency,  Washington,  D.  C: 
Conversing  with  chairman  of  city  council.  Special  committee  investigating  na- 
tional bank  deposits,  etc.  AVm.  H.  (Lee)  was  suggested  as  suitable  receiver  for 
Keystone  Natiimal  Bank.  He  is  nowise  connected  with  it;  prominent  lawver ;  good 
business  qualities;  director  of  City  National  Bank;  ex-president  of  common  council- 
lawyer  here  for  Govr.  Proctor;  well  known  to  Mess.  Wanamaker,  Blaine,  Congress- 
men, newspaper  men,  city  officials,  etc. 

H.  A.  Terry, 

19  2f.  5th  St, 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  9,  1891. 
Notice  is  hereby  given  to  all  persons  who  may  have  claims  against  '^ Keystone 
National  Bank  of  Philadelphia/'  Pa.,  that  the  same  must  be  presented  to  Robert  M 
\  ardley,  receiver,  with  the  legal  proof  thereof,  m  it-hin  three  months  from  this  dat^e* 
or  they  may  be  disallowed.  ' 

E.  S.  Lacey, 
Comijiroller  of  the  Currency. 

Q.  Theu  tlie  appointment  of  Yardlcy  was  eonipleted  and  Yardley  was 
m  possession  at  the  time  of  the  pnblication  of  the  notice  dated  May  9 
1891?— A.  3[y  recoUeetion  is  that  his  coinnnssion  was  dated  the  8tli' 
and  on  the  9th  this  notice  was  issued.  ' 

Q.  T  want  to  inquire  whether  this  came  before  or  after  tlie  appoint- 
ment of  Yardley  f— A.  It  was  after. 

Q.  Will  you  state  tlie  circumstances  which  led  up  to  the  appointment 
of  Mr.  Yardley,  and  what  recommendations  he  had,  if  any  f— A.  He  was  a 
member  of  Congress  from  Pennsylvania— I  have  forgotten  what  Con- 
gress, but  I  think  the  Fiftieth  and  Fifty-first— but  at  this  time  he  was 
not  a  member  of  Congress;  Judge  Gilk^son,  Second  Comptroller  of  the 
Ireasury,  is  from  Doylestown,  Pa.,  the  same  place  where  Yardley  resides, 
or  in  the  same  county,  and  hearing  of  this  Keystone  Bank  matter,  as  vou 
recoUect,  he  wrote  me  a  letter.  His  attention  having  been  called  to 
the  receivership,  he  came  up  to  talk  with  me  about  it,  and  I  told  him  I 


'^tm^ 


'r 


i 


198 


TNVKSTTGATION   OF   NATION AI.   BANKS. 


was  looking  for  a  suitable  man  who  did  not  reside  in  Philadelphia f  that 
I  preferred  to  j^et  a  man  who  resided  outside  of  Philadeli>hia,  one  who 
would  not  be  interested  in  the  aft'airs  of  tiie  bank,  and  whose  relatives 
would  not  be  interested  in  them.  Judj»e  Gilkeson  suggested  the  name 
of  Mr.  Yardley,  and  I  made  some  inquiry  of  people  who  knew  him  in 
Congress,  and  they  spoke  highly  of  him.  I  si>oke  to  the  Secretary  of 
the  Treasury  about  Mr.  Yardley,  and  he  thought  well  of  the  matter. 
Judge  Clilkeson,  Secretary  Foster,  and  myself  had  a  conversation  about 
it,  and  it  was  suggested  that  Judge  Gilkeson  telegraph  Mr.  Yardley 
and  have  him  come  on.  On  the  8th  of  May  Mr.  Yardley  came  to  the 
Department.  Judge  Gilkeson  brought  him  up  and  introduced  him  to 
me,  and  we  three  went  to  Secretary  Foster's  room  and  had  a  consulta- 
tion, at  which  time  Yardley's  appointment  was  decided  upon  and  his 
commission  issued  immediately. 

(^  You  stated  that  you  had  inquired  of  other  people  about  Mr. 
Yardley.    Can  you  tell  who  else  you  inquired  of  f — A.  1  can  not. 

Q.  Can  you  name  any  i)erson  other  than  Judge  Gilkeson  and  the 
Secretary  of  the  Treasuiy! — A.  I  would  not  at  this  time  be  able  to 
name  any  person  with  whom  I  consulted  other  than  those. 

Q.  Did  you  consult  with  anybody  in  l*hiladel])hia? — A.  Not  unless 
they  happened  to  be  in  the  office  j  I  do  not  remember  about  that. 

Q.  Do  you  remember  whether  or  not  you  did  consult  with  anybody 
in  Philadelidiia  as  to  the  selection  of  Mr.  Yardley? — A.  1  do  not  think 
I  did.  I  have  no  recollection  of  consulting  with  anybody  in  Phila- 
delphia. 

Q.  Did  you  consult  with  John  Wanamaker  on  that  subject f— A.  I 
did  not. 
Witness  read  letter  and  telegram  as  follows : 

Tiw:a8URy  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  9, 1891. 
Sir:  Hon.  Rohort  M.  Yardley,  of  Doylestown,  Pa.,  has  this  day  been  appointed 
receiver  of  the  Keystone  National  i^ank  of  Pliiladdphia,  Pa.,  of  which  yon  are  now 
in  charge. 

A  Idunk  bond  has  been  handed  to  Mr.  Yardh^y  for  execntion  in  the  penal  snm  of 
fifty  thonnand  dolhirs  ($50,000),  with  at  least  two  good  and  snthcient  sureties,  the 
sufficiency  of  th<'  sureties  to  be  ('Citified  by  a  judge  of  a  court  of  recorl,  luuhr  t^cd  of 
Ihe  court,  other  tliau  a  probate  couil.  The  suieties  are  to  (|ualify  iu  doiilde  tlie 
amount  of  the  bond. 

I  enclose  henwith  the  usual  iustrnctions  us  to  the  receiver's  duty,  blank  forms  for 
his  guidance,  and  other  papers,  which  you  will  diliver. 

When  Mr.  Yardley  places  in  your  hauds  the  bond,  duly  e\eeut<Ml  according  to  its 
terjus,  you  may  deliver  his  commission,  which  is  enclosed  herewith,  and  turn  over 
to  him  all  the  assets  of  the  bank,  forwarding  the  bond  to  this  othce. 

Please  see  that  your  schedules  and  those  to  be  prepared  l)y  the  receiver  are  dis- 
tin<'t  and  in  the  desired  fium.  Your  schedules  should  show  the  character  of  each 
asset  which  belonged  to  the  bank  at  date  of  failure;  but  the  assets  are  not  to  be  sub- 
divided into  ''good,"  <' doubtful,"  and  ''worthless,"  while  the  receiver  nnist  have 
his  in  this  form,  his  total  of  all  assets  agreeing  Avith  the  total  in  your  schedules. 
•  You  should  also  advise  Mr.  Yardley  with  respect  to  the  preparation  of  his  schedules 
in  accordance  with  his  letter  of  instructions. 

At  your  convenience,  please  forward  a  concise  and  formal  statement  of  what,  in 
your  ojdnion,  constituted  the  inmiediate  and  remote  causes  of  the  failure  of  the 
bank. 

Please  give  Mr.  Yardley  all  the  inforuiation  in  yonr  possession  with  respect  to  the 
atfairs  of  the  bank,  so  that  he  may  be  as  thoroughly  posted  as  possible  from  the 
)>eginning  of  his  receivership. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 
Mr.  Wm.  p.  Drew, 

National  Bank  Kxaminer,  in  charge  Keystone  National  Banl-,  Pliiladelphia,  Pa. 


Investigation  of  national  banks. 


199 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  9, 1891. 
Mr.  John  Huggard, 

(Care  The  Citizens  Trust  &  Surety  Co.,  Philadelphia,  Pa.) : 

Dear  Sir:  I  am  in  receipt  of  your  letter  of  the  8th  instant  in  regard  to  the  re- 
ceivership of  the  Keystone  National  Bank,  and  in  reply  have  to  say  that  Hon.  Robert 
M.  Yardley,  of  Doylestown,  Pa.,  has  to-day  been  appointed  receiver  of  said  bank. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller . 


V\ 


Treasury  Department, 
Office  of  Comptroller  of  Ct  rrency, 

Washington,  I).  C.,  May  9,  1891. 
Mr.  Sidney  F.  Tyler, 

(Care  The  Fourtli  Street  National  Bank,  Philadelphia,  Pa.) : 

Dear  Sir:  Yonr  letter  of  the  8th  instant  is  received,  recommending  tlie  appoint- 
ment of  Mr.  W.  T.  Tiers  as  receiver  of  the  Keystone  National  Bank.  In  reply,  you 
are  respectfully  informed  that  Hon.  Robert  ^i.  Yardley,  of  Doylestown,  Pa.,  whose 
appointment  was  detennined  np<m  before  the  receipt  of  your  letter,  was  to-day  ap- 
]>ointed  receiver  of  said  bank. 
Very  respectfully, 

E.  S.  Lacey, 

Coniptroller. 

Tbe  letter  received  from  Mr.  Drew  dated  May  24,  1891,  is  the  first  in- 
formatioQ  we  had  iu  regard  to  the  irregular  due  bills,  $925,000,  held  by 
Bnrdsley. 

Witness  then  read  letter  and  telegram  as  follows  : 

Treasury  Department, 
Office  of  Comptroller  of  Currency, 

Washington,  I).  C,  May  9,  1891. 
Dear  Sir:  Your  letter  of  the  8th  instant  is  received,  in  which  yon  recommend  the 
appointment  of  Mr.  W.  T.  Tiers  as  receiver  of  the  Keystone  National  Bank. 

In  reply,  you  are  respectfully  informed  that  the  appointment  of  Hon.  Robert  M. 
Yardley,  of  Doylestown,  Pa.,  was  detennined  upon  before  the  receipt  of  your  letter, 
and  has  to-day  been  made. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 
Mr.  Samuel  B.  Huey, 

.'i45  Drexel  Building,  Philadelphia,  Pa. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  9,  1891. 

Sir:  You  ligve  this  day  been  appointed  receiver  of  the  Keystone  National  Bank  of 
Philadelphia,  Pa.,  now  in  charge  of  Mr.  Wm.  P.  Drew,  National  Bank  Examiner,  and 
1  hand  you  herewith  a  blank  bond,  which  yon  will  please  execute  in  the  penal  sum 
of  fifty  thousand  dollars  ($50,000)  with  at  ieast  two  good  and  sufficient  sureties,  the 
sufficiency  of  the  sureties  to  be  certitied  by  a  judge  of  a  court  of  record,  undei-  seal 
of  the  court,  other  than  a  probate  court.  The  sureties  are  to  qualify  in  double  the 
amount  of  the  bond. 

Upon  handing  the  bond,  properly  executed  according  to  its  terms,  and  certitied  as 
above  instructed,  to  Mr.  Drew,  you  will  receive  your  commission  from  him  and  be 
placed  in  charge  of  all  the  assets. 

A  letter  of  instructions  for  your  guidance  is  enclosed  herewith,  and  the  examiner 
will  render  you  all  the  assistance  in  his  power,  and  give  you  all  information  with 
respect  to  the  affairs  of  the  bank  in  his  possession. 

You  are  requested  to  advise  this  office  freely  with  respect  to  questions  w  hich  may 
arise  as  to  the  allowance  of  claims,  compromises,  and  settlements  of  whatever  nature 


f 


i     '1 


200 


INVESTIGATION    OF    NATIONAL    BANKS. 


^mi 


which  may  uot  be  fully  covered  in  the  letter  of  instructions,  and  further  instructions 
Tviu  DC  jC^iven. 

-rifl^wn  wi'i^K  l*?;'*^^'^^*'^  notice  of  instructionH  relative  to  your  schedules  of  assets. 

hoKc  made  by  the  examiner  will  be  m  duplicate  and  cover  every  asset  of  the  bank 

w..r  .H  >     /!     '''^'"■•'-     <^'*  fVPy J>eaiin-  yonr  receipt,  and  sijruature,  will  be  for- 

Tv  arded  by  the  examiner  to  this  office.     The  prejiaration  of  your  scliedn  es  will  bei^in 

%W  ri  ^'""  ^^1  *^J^^  '^^'^^'  \"^  forwarded  at  the  earliest  practicable  nu.n.cnt. 
i  our  salary  will  be  $300  per  month  until  further  advised. 
Very  respectfully, 

E.  S.  Lacey, 
Hon.  Robert  M.  Yardley,  ComptroUev. 

fVaahington,  D,  C, 


Philadelphia,  April  10,  1891. 

wmf  ll.!*""  ?^®*^  ^'^*''^''^  {'*''"  *,^®  columns  of  the  Philadelphia  Times  of  to-day, 
with  reference  to  my  official  conduct  in  connection  with  the  Kevstone  National 

m«dP  .n.t'ZYr'''''"^  K  ""^  *^  ^^^^"i^  r^"^"'  ''^•^"•^^  *h^  ««"«^«  all'esations  therein 
fit  it'  ^^*^  *H^  L^^^y  ^^  prepared  to  do  so  at  the  '^hearing "on  the  15th  inst  Should 
the  U   S.  dist.  attj  concur  with  me  m  the  propriety  of  such  a  course,  I  would  re- 

rdit'i,,rt'ortLXit'ttt',^  •^•""'  •""^<'  "»■•  *•"'  -'"^'' "''""' ' "-« 

I  will  return  them  intact. 
Very  respectfully, 

W.  P.  Drew, 

Hon.  E.  S.  Lacey,  ^''*'  ^""^^  J^^aminer. 

Comptroller  of  the  Currency,  Washington,  D.  C. 

,  K'  ^-tK^^^^^  f  ^^?  ^^\y  *""?^  lil^®  *o  l^ave  you  send  me  copies  of  the  Comptroller's 
letters  to  the  bank,  based  on  these  reports.  v.umpi,roiiers 

W.  P.  D. 


I 


'  Philadelphl\,  May  11, 1S91. 

sir:  I  receiyed,  this  morning,  your  letter  notifying  me  of  the  appointment  of  Mr 
l^lt^t^  ''Tfl^^\  ^^  *^^  Keystone  National  Bank,  with  acccm.panying  papers      f 
have  heard  th»t  he  was  in  town  to-da> ,  but  he  has  not  bt-en  at  the  bank"  and  thme 
lore,  I  have  not  seen  him.     He  will  doubtless  appear  to-morrow      Hi^faiZintment 
gives  great  satisfaction  in  all  quarters.  "««  appoiniment 

Matters  are  progressing  slowly  at  the  Spring  Garden  Nat.  Bank,  althoiu^h  all  are 

MnrnL^T*'""?  ^.^^^  ^^'^  '\  ^^^t^'"'«"^'  ^vhicl  will  be  forwarded  in  a  da v  or    wo 
Much  ot  my  time,  just  now,  is  taken  up  in  attention  to  details  of  the  day  of  ZhZu- 
siou.     still,  things  are  in  a  state  ot  reasonable  forwardness  then- 
Jnw^fno^T''*'  ''""i*^  more  like  a  bad  failun',  and  the  talked-of  chances  of  recovery 
grow  steadily  weaker,  as  I  regard  it.     Probably  a  receiver  will  be  the  result 

May  I  ask  whether  you  received  my  letter  that  the  city  councils,  by  a  committee 
had  requested  through  me  your  permission  to  examine*  the  accts.  of  Mr  IWsle^^ 
the  treasurer?    I  do  not  think  the  committee  are  at  all  anxious  to  haV    [his  pm^ 

?heMeasu?e;.'''  ^^  '''*''^"'"  ^"^'  ^^^^*  *^^*^"  "^*^^«  ^'^^^^>'  «^^  ac<  ,u4!^  of 

Very  respectfully, 

W.  P.  Drew. 
Hon.  E.  S.  Lacey,  ^^''*'  ^^«'*^"  ^•'•««»'«^''. 

Comptroller  of  the  Currency,  Washington,  D.  C. 

The  communication,  dated  June  1,  1891,  addressed  to  the  Hon  Ben- 
jamin Harrison  by  Joseph  D.  T.  Junkin,  is  an  exact  copy  of  the  one  ad- 
dressed  to  Secretary  Foster  (dated  Mav  1, 1891,  by  mistake) 


INVESTIGATION    OP    NATIONAL    BANKS. 


201 


Witness  read  letter  as  follows ; 

Treasury  Departmenj', 
Office  of  Comptroller  of  Currency, 

Washington,  1).  C,  May  11,  1891. 
Sir:  As  you  are  aware,  a  receiver  has  been  appointed  for  the  Keystone  National 
Bank,  and  is  instructed  to  immediately  prepare  his  schedules  of  all  the  assets  of  the 
bank  as  they  existed  at  date  of  suspension.  Your  schedules  of  these  identical  assets 
have  not  been  received,  and  it  is  necessary  that  they  should  be  promptly  prepared 
and  forwarded  to  this  office.  The  changes  which  have  occurred  while  you  were  in 
charge  will  be  shown  by  the  receiver's  report,  and  your  schedules  of  course  will  not 
show  any  estimate  of  actual  values.  The  Comptroller  would  have  requested  you  to 
have  forwarded  them  at  first,  except  for  assurances  as  to  the  possibility  of  a  resump- 
tion of  business.  It  is  now  absolutely  necessary  that  there  should  be  no  further  de- 
lay. 

With  respect  to  the  Spring  Garden  National  Bank,  of  which  you  are  now  in 
charge,  you  are  requested  to  immediately  commence  the  preparation  of  the  required 
schedules  and  forward  them  to  this  office  at  the  earliest  practicable  moment.  You, 
of  course,  understand  that  the  totals  of  the  receiver's  schedules  must  agree  with 
those  of  yours  in  each  case. 

Please  advise  the  receiver  of  the  Keystoue  National  Bank  on  this  i>oint,  and  give 
the  benefit  of  your  advice  and  experience. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 
Mr.  Wm.  p.  Drew, 

National  Bank  Examiner, in  charge,  Spring  Garden  National  Bank,  Philadelphia,  Pa. 


May  12, 1891. 
Sir  :  Your  favor  of  the  11th  instant  came  to  hand  to-day.    I  note  with  pleasure  that 
the  appointment  of  Mr.  Yardley  is  well  received  in  Philadelphia. 

I  am  glad  to  know  that  you  will  soon  be  able  to  give  me  a  complete  statement  of 
the  aftairs  of  the  Spring  Garden  National  Bank.   As  I  before  informed  you,  yonr  com- 
munication which  contained  the  request  of  the  finance  committee  never  came  to 
hand,  hence  I  have  made  no  reply. 
Very  respectfully, 

E.  S.  Lacey, 
Mr.  W.  P.  BKEW,  Comptroller. 

National  Bank  Examiner,  Philadelphia,  Pa. 


4- 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  12,  1S9L 
Sir:  I  am  in  receipt  of  your  favor  of  the  10th  instant,  in  which  voii  inclose  a  clip- 
ping  from  the  Philadelphia  Times  of  May  10th,  editoriallv  criticising  you  in  connec- 
tion with  the  failure  of  the  Keystone  National  Bank.  You  also  intimate  that  you 
desire  copies  of  your  official  reports  and  of  the  Comptroller's  letters  to  the  bank  for 
the  purpose  of  making  a  defense  of  yonr  conduct  at  the  examination  before  the  U.  S. 
commission  on  the  15th  instant. 

In  reply,  I  beg  leave  to  say  that  it  seems  to  me  improper  to  undertake  a  defense 
under  such  conditions,  as  the  evidence  which  you  propose  to  submit  would  be  irrele- 
vant to  the  matter  at  issue,  and  would  be  subject  to  objection  by  the  opposing  coun- 
sel. You  would  be  naturally  so  restricted  by  the  laws  of  evidence  as  to  make  a  per- 
sonal defense  of  your  connection  with  the  Keystone  National  Bank  almost  entirelv 
impracticable.  In  any  event  your  reports  to  this  office  and  the  office  letters  in  reply 
are  of  a  confidential  character  and  cannot  be  properly  made  evidence  in  an  examf- 
nation  of  this  character. 
Very  respectfully, 

E.  S.  Lacey, 

»«^     -rrr  -^   ^  Comptroller. 

Mr.  W.  P.  Drew, 

National  Bank  Examiner,  Philadelphia,  Pa. 


M 


1^1 


if- 


202 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


203 


,.  [Telegram.] 

T*iiiLAi)Kr-PHiA,  May  13^  1S91. 
Hon.  E.  S.  Lacey, 

Compr.  of  Currency,  Wash'n. : 

Yardley  takes  charge  Monday.    Everything  under  good  control. 

Wm.  p.  Drew. 

Here  is  a  letter  addressed  to  me  under  date  of  June  4,  1891,  which 
has  no  signature,  but  which  I  have  no  doubt  came  from  Mr.  Drew. 

Q.  Is  that  letter  typewritten!— A.  I  think  it  is  typewritten. 

Q.  I  notice  one  in  his  own  hand.— A.  I  think  this  is  typewritten; 
and  this  is  probably  why  the  signature  was  left  off. 

ByMr.  Sperry: 

Q.  Read  the  gist  of  the  charge  that  was  made  in  the  dispatch  of 
wliich  Mr.  Drew  speaks. 

The  Chairman.  The  iminitation  made  in  the  paper  was  that  Drew 
took  upon  himself  the  responsibility  of  settling  over  $(>00,()00  indebted- 
ness in  the  Lucas  estate  to  the  bank,  and  it  was  not  reported  to  the 
Comptroller  until  after  the  settlement. 

Mr.  TowNSEND.  My  recollection  is  that  it  was  first  disclosed  on  the 
9th,  and  the  first  re])ort  to  the  Comptroller  was  made  on  the  24th. 

The  Chairman.  The  point  of  the  charge  is  that  he  took  time  and 
made  the  settlement  himself  without  consulting  with  the  Comptroller! 

A.  Perhaps  it  is  proper  that  I  should  say  that  investigation  not  only 
disclosed  no  letters  from  Drew  officially  or  unofficially,  but  also  there 
was  the  absence  of  any  comnumication  from  me  to  him  during  that 
period  containing  anything  whatever  in  reference  to  it  officially  or  un- 
officially. 

\Vitness  reads  letters  and  telegrams  as  follows: 

Phii.adelphia,  May  13,  1891, 
Silt:  As  I  telegraphed  you  this  morning,  Mr.  Yardlev  will  not  take  possession  of 
the  Keystone  Nat.  Bank  until  Monday  next,  as  he  says  he  requires  until  then  to 
arrange  his  private  business.  Meanwhile  we  are  busy  at  that  bank  preparing 
I»roots  ol  the  ledgers,  etc.,  to  produce  at  the  hearing  on  Friday  i^xt  before  the  U 
S.  eommissiouer.  It  is  the  purpose  of  Mr.  Read  not  to  confine  his  examination  to 
the  officers  set  forth  in  my  affidavit,  but  to  produce  evideiice  in  general  bearing 
upon  the  condition  and  conduct  of  the  bank.  Great  interest  is  felt  here,  and  the  oc- 
casion will  be  one  to  be  remembered  by  all  the  bank  people  as  well  as  others. 

I  have  been  somewhat  hampered  in  my  work  to-dav  at  the  Si>ring  Garden  Nat 
Bank  by  absence  of  my  trusted  assistant,  Mr.  Jones,  who  has  broken  down  from  se- 
vere prostration.     I  expect  that  he  will  be  on  duty  to-morrow. 

The  affairs  at  the  bank  are  very  much  mixed,  and  the  nearly  3.000  sHcouuts  on  the 
books  demand  a  vast  deal  of  work,  and  much  of  my  time  is  taken  up  in  details  of 
the  day  8  requirements,  and  in  correspondence  with  banks  which  need  inmiediat<? 
attejition.  Htill  I  am  making  steady  progress  on  my  re]>ort  and  hope  to  forward  it 
very  soon. 

Some  talk  of  reorganization  is  had,  but  the  present  outhM.k  forebodes  a  receiver 
I  understand  that  Mr.  Rhawn,  prest.  of  the  Republic  Bank  here,  would  accept  the 
position  if  tendered,  lie  has  not  been  seen  by  me,  but  he  would  be  in  mv  iudc- 
meut,  an  ideal  receiver,  if  he  would  take  the  place.  The  involvements  of  Kennedy 
and  livens  seem  to  be  growing,  but  my  impressions  may  be  premature  The  in- 
structions of  your  letters  received  to-day  have  been  followed. 
Very  respectfully, 

W.  P.  Drew, 

„       x*   a    T  -^'"^'  ^«wfc  Examiner, 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency^  Washington,  D,  C. 


TiTE  Spring  Garden  National  Bank, 

12th  &  Spring  Garden  Sts., 

rhiladdphia,  May  If,  IS9I. 

Sir:  Your  letter  of  the  I2th  instant,  in  iins\v<?r  to  my  letter  of  the  10th  iust.,  re- 
ferring to  criticism  of  '*The  Times"  of  my  action  in  regard  to  the  Keystone  Nat. 
Bank,  is  received. 

1  regret  that  I  faihid  to  make  myself  understood,  as  I  wished  the  pai^ers  solely  to 
show  privately  to  the  dist.  atty.,  and  not  for  any  defense. 
Had  I  known  at  the  time  what  I  now  know  I  would  not  have  made  the  request. 
Very  respectfully, 

W.  P.  Drew,  Exmr. 

Hon.  E.  S.  Lacey. 

Comptroller  of  the  Currency,  Washinffion,  7>.  C. 


Philadelphia,  May  15,  1891. 

Sir:  I  had  expected  to  be  able  to  forward  a  report  on  the  Spring  Garden  National 
Bank  this  evening,  but  the  ''hearing"  in  the  case  of  the  officers  of  the  Keystone 
National  Bank,  and  preparations  therefor,  consumed  so  much  of  the  day  that  I  shall 
not  be  able  to  c<miplete  my  report  until  to-morrow.  The  **  hearing  "is  postponed 
until  11  o'clock  to-morrow^  but  the  dist.  atty.  says  it  will  be  over  for  the  day  at  1 
o'clock,  so  that  I  shall  be  abb'  to  devote  the  rest  of  the  day  to  my  work  on  the  re- 
port. 1  find  much  difficulty  in  obtaining  satisfactory  reports  from  tlie  correspond- 
ing banks.  This  entails  more  than  ordinary  work,  and  so  many  of  the  securities 
held  for  loans  are  of  uncertain  value  and  remote  in  location  that  this  embarrasses  us 
somewhat.  Although  Mr.  Kennedy  speaks  hopefully  of  organization  I  can  see  but 
little  likelihood  of  it,  and  I  am  more  and  more  ccmvinced  that  his  conduct  has  not 
bei'u  regular.  I  am  all  the  mor«'  sn8pi<'ious  of  this,  because  his  attorney  has  asked 
me  to  report  to  him  if  1  find  any  grounds  for  action,  and  I  learn  from  the  dist.  atty. 
that  the  same  request  has  been  made  to  him. 

Mr.  Yardley  was  at  the  Keystone  a  few  minutes  to-day.  He  says  he  will  be  pre- 
pared to  take  charge  on  Monday.     I  hope  so. 

There  is  a  great  deal  of  feeling  here  on  account  of  these  two  suspensions,  and 
many  are  expecting  more  arrests  and  more  developments.  To-morrow,  besides  Mr. 
.lones  and  myself,  the  directors  of  the  Keystone  Nt.  Bank  are  to  be  examined  by 
Mr.  Reed. 

Some  of  the  papers  think  I  onght  to  Ijavo  se«'n  what  was  invisible;  but  1  feel  that 
I  have  done  my  duty,  and  I  hope  you  think  so  too. 

From  present  outlook  I  judge  a  receiver  should  be  sent  to  the  Spring  Garden  be- 
fore long.     Personally,  I  hope  so,  for  I  want  to  get  at  my  regular  work. 
V^ery  respectfullv. 

W.  1'.  Drew  , 
XaL  Hank  Examiner . 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Cnrrenry,  Wash  hi  (ft  on,  1).  C. 


Keystonk  Xatioxal  Bank, 
1326  AND  1828  GirESTxuT  Street,  opposite  the  IT.  S,  Mint, 

I'hiladdphia,  May  .'0th,  IS'JI. 

Dear  Sir:  I  beg  leave  to  transmit  hcrewitb  a  communication  received  from  the 
committee  of  common  council  in  Philadelpliia.  now  investigating  the  city's  deposits 
in  the  Keystone  National  Bank  an<l  other  iianks,  and  respectfully  request  instruction 
in  the  premises. 

Yours,  respectfully, 

Robert  M.  Yardley, 
Eeceivei'  of  the  Keystone  National  Bank. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


l\ 


t1 


I 


204 


INVKSTIGATrON    OF    XATIOXAI.    P.ANKS. 


INVESTIGATION   OF   NATIONAI.    BANKS. 


205 


m 


llilj 


CoMMOx  Council, 
Philadelphia,  May  19,  1891. 

Dear  Sir:  The  committee  of  the  coniicilN  of  Pliiladclphiji,  now  investigating  tbt> 
city's  <le]>OHit8  in  the  Keystonr  National  Bank  and  otluT  hanks,  lespectiully  reqnest 
that  they  be  alh)wed.to  examine  the  acconnts  of  the  city  treasnrer,  John  Bardsley 
an«l  all  his  accounts  contained  among  the  hooks  and  papers  iu  tlie  Keystone  National 
J{ank. 

Yours,  very  respectfully, 

Wm.  Van  Osten, 
Chairman  of  the  Committee. 
Hon.  Robert  M.  Yarducy, 

JRcceiverofthe  Keif  atone  Bank. 


Keystone  National  Bank, 
1326  and  1328  Chestnut  Street,  Opposite  the  U.  S.  Mint, 

Philadelphia,  May  SOth,  1891. 
Dear  Sir:  I  beg  leave  to  enclose  herewith  a  letter  from  the  Hon.  Thomas  M. 
Thompson,  city  contndler  of  Philadelphia,  and  would  respectfully  recommend  that 
liis  request  be  granted. 
Very  respectfully, 

Robert  M.  Yardley, 
Receiver  of  the  Keystone  National  Bank. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


[Dopartmeut  of  city  controller,  City  Hall.    Thomas  M.  Thompson,  city  controller.] 

Philadelphia,  May  20, 1S91. 
Dear  Sir:  This  departmejit  would  be  pleased  to  know  the  amount  standing  to 
the  credit  of  the  city  treasurer  of  Philadelphia,  upon  the  books  of  the  Keystone 
National  Bank. 

Will  you  kindly  give  this  your  immediate  attention,  and  advise  this  department 
thereafter  as  soon  as  ])os8ible. 
Yours  very  truly, 

Thomas  M.  Thompson, 

City  Comptroller, 
Robert  M.  Yardley,  Esq., 

Receiver,  Keystone  National  Bank,  Philadelphia,  Pa, 


Philadelphia,  May  21, 1891. 

Sir:  On  reconviiilng  of  the  "hearing"  this  afternoon  at  2  o'clock  it  was  found 
that  Mr.  Marsh  had  absconded.  His  bail  ($20,000)  was  declared  forfeited,  and  the 
proceedings  were  continued  for  several  hours.  It  has  covered  testimony  from  the 
directors  and  clerks,  myself  and  my  assistant,  Mr.  Jones,  and  has  been  conducted  in 
a  very  thorough  manner  by  the  U.  S.  dist.  atty.  I  do  not  see  that  anything  of  a 
criminal  nature  has  been  elicited  affecting  others  than  those  now  under  arrest.  Bail 
was  continued  for  Mr.  Lawreme  until  the  August  term  of  court. 

Mr.  Yurdley  has  ]»een  absent  to-day  attending  to  professional  ])usinefis  at  Doyles- 
town,  but  his  chief  clerk,  Mr.  Ryan,  a  partner  of  Mr.  Yardl«>y,  and  who  will  remain 
with  tlie  latter  during  the  receivership,  has  been  at  the  bank  all  day. 

The  count  of  the  money  has  been  concluded,  and  the  amount,  solne  ^llfi.OOO,  has 
been  verified.  Moreover,  lists  of  all  assets,  including  discounted  notes,  and  names, 
etc.,  of  depositors  will  he  finished,  and  I  expect  a  full  receipt  for  everything  liy 
Saturday. 

1  have  been  at  the  Spring  Garden  Nat.  Bank  most  of  the  day.  Things  there  in 
progress  towards  a  transfer  of  the  affairs  to  the  receiver. 

President  and  Cashier  Kennedy  were  arrested  to-day  and  taken  before  a  magis- 
trate on  a  charge  of  receiving  deposits  after  they  knew  the  bank  was  insolvent.  The. 
hearing  was  posti)oned  until  Saturday,  and  members  of  the  C.  H.  connuittee  and  I 
have  been  subpoenaed. 

I  received  your  telegram  of  the  appointment  of  Gen.  Fisher  as  receiver,  and  I 
believe  the  selection  will  give  entire  satisfaction. 
Very  respectfully. 

W.  P.  Drew, 

Nat.  Haul:  /^xa miner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  22,  1891. 

Sir:  Your  letter  of  the  20th  inst.  is  received,  inclosing  a  communication  from  Mr. 
Wm.  Van  Osten,  chairman  of  the  committee  of  the  common  council  of  Philadelphia, 
requesting  permission  to  examine  the  accounts  of  the  city  treasurer,  Mr.  Bardsley, 
as  shown  by  the  records  of  the  Keystone  National  Bank. 

While  it  is  unusual  to  submit  the  records  of  an  insolvent  national  bank  to  in8pe<-- 
tion,  except  as  produced  by  mandate  of  the  courts,  I  can  see  no  objection  under 
all  the  circumstances  to  an  examination  of  Mr.  Bardsh^s  accounts,  if  such  examina- 
tion is  restricted  to  the  single  purpose  and  is  conducted  under  your  personal  super- 
vision. 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 

Hon.  Robert  M.  Yardley,  Esq., 

Receiver,  Keystone  National  Bank,  Philadelphia,  Pa, 


Treasury  Department. 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  May  22,  1891. 

Sir  :  Your  letter  of  the  20th  inst.  is  received,  enclosing  a  communication  from 
Hon.  'ITiomas  M.  .Johnson,  city  comptrollec  of  Philadelphia,  requesting  information 
as  to  the  amount  standing  to  the  credit  of  the  city  treasurer  of  Philadelphia  upon 
the  books  of  the  Keystone  National  Bank. 

1  see  no  objection  to  your  giving  the  information,  with  the  statement  that  the 
balance  is  so  much  as  shown  by  the  books,  errors  excepted. 

Very  respectfully, 

E.  S.  Lacey, 

ComiJtroll&r. 
Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa. 


Philadelphia,  May  22, 1891. 

Sir:  No  tidings  yet  from  Marsh,  although  every  effort  is  being  made  to  effect  his 
capture.  It  is  the  general  belief  that  he  has  fled  to  South  America.  Matters  at 
the  two  suspended  l)anks  here  are  as  usual.  Mr.  Fisher  has  not  yet  appeared.  I 
am  having  all  work  done  which  will  expedite  the  transfer.  The  sensation  of  the  day 
has  been  the  resignation  of  Mr.  Bardsley  as  city  treasurer,  and  an  assignment  in 
favor  of  his  creditors.  I  fear  very  unfavorable  revelations  affecting  his  conduct,  par- 
ticularly with  the  Keystone  Nat.  Bank. 

The  Kennedy's  of  tlie  Spring  Garden  Nat.  Bank  are  being  actively  i>rosecuted  by 
certain  depositors  on  charges  of  receiving  money  frcmi  them  after  they  knew  the 
bank  was  insolvent,  and  1  have  been  summoned  to  attend  an  adjourned  hearing  to- 
morrow. I  shall  attend  but  shall  decline,  for  want  of  authority,  to  produce  books 
and  papers. 

I  called  at  the  Third  Nat.  Bank  to-day.  It  has  had  a  very  hard  time  lately,  and 
has  reducetl  its  deposits  by  payment  from  $1,500,000  to  about  $881,000. 

There  is  considerable  uneasiness  felt  concerning  its  immediate  future.  I  will  be 
within  reach,  and  will  promptly  notify  you  of  results. 

Will  you  please  have  returned  to  me  some  letters  from  your  office  which  I  by  mis- 
take enclosed  in  my  letter  to  you  of  last  evening. 
Very  respectfully, 

W.  P. Din-w , 
Nat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C,  * 

Letters  and  packages  respecting  the  receiver  for  the  Spring  Garden  Nat.  Bank 
were  rec'd  to-day. 


m 


T 


5' 


206 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    Or    NATIONAL    BANKS. 


207 


TuEASUKY  Department, 
Office  Comptroller  of  the  Treasury, 

Washington,  D.  ('.,  May  ^^3,  1801. 
Mr.  William  P.  Drew, 

Examiner  in  charge  Spring  Garden  National  Bank,  rhiladelphia,  Pa.: 

Sir:  I  am  in  receipt  of  your  favor  of  the  2l8t  instant  enolosing  a  letter  addressed 
to  me  under  date  of  May  Gtb,  which  letter  went  astray,  and  in  which  was  enclosed  » 
request  Hijjfiied  by  Mr.  WiJliani  Van  Ostcn,  chairman  of  a  committee  of  the  common 
council  of  Philadelphia,  askin<j:  permission  to  examine  the  account  of  the  City  Treas- 
urer in  the  Keystone  National  Hank. 

At  your  request,  1  herewith  hand  you  a  copy  of  that  letter  which  you  desire  to 
preserve. 

I  also  return  herewith  four  communications  addressed  by  me  to  you  under  the  fol- 
lowing dates :  *  May  16th,  May  19th,  and  two  of  May  20th,  which,  it  is  presumed,  you 
enclosed  by  mistake. 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 
*Im  relation  to  Spriiij;  Garden  iS'atioual  Bank  receiver. 


PllLLADELPHiA,  May  ii4, 1891. 

Sir:  I  encl<»se  slip  from  the  Times  of  this  city  of  to-day.  It  docs  me  so  much 
injustice  that  I  hardly  know  how  to  treat  it.  Can  I  do  anything?  I  am  Avilling  to 
submit  to  any  i)racticable  investigation  to  establish  my  entire  innocence  of  the 
char<;es  and  imjnitations  upon  my  official  capacity  and  conduct.  Can  you  indicate 
any  course  that  I  can  pursue  to  vindicate  myself  from  these  injurious  statements? 

Treasurer  Bardsley  was  arrested  last  night.  He  now  claims  that  the  Keystone 
owes  him  on  C.  H.  <lu<*bill8  980,600  more  than  he  has  heretofore  made  any  claims 
for.  There  is  no  evidence  of  this  debt  and  1  do  not  believe  that  there  is  any  sort  of 
foundation  for  the  claim. 

I  expect  to  complete  the  transfer  of  the  Keystone  to  the  receiver  to-morrow. 

Gen.  Fisher  will  appear  at  the  Spring  Garden  on  Tuesday  next,  I  am  informed.  I 
have  not  seen  him. 

Dist.  Asst.  Rea<l  and  myself  are  in  conference  often,  and  arrests  may  be  expected 
on  an  early  day  connected  with  the  Spring  Garden  Bank.     I  will  keep'y«m  promx)tly 
notitied  of  any  results. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Wa8hingt4)n,  D.  G, 


[Robert  N.  Yardley,  Receiver  of  Keystone  National  Bank,  1326  juid  1328  Chestnut  Street,  opposite  the 

U.  S.  Mint.    Xo.  2291.  J 

Philadelphia,  May  Mth,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency  : 

Sir  :  I  am  informed  that  the  clearing-house  committee  holds  about  $247,000  paper 
and  $101, (XK)  paper  protested  as  collateral  securing  $90,000  in  loan  certificatics  bearing 
6  per  cent. 

Please  instruct  me  whether  the  loan  certificates  are  to  be  taken  up  in  order  that 
interest   may  be  stopped  and  tlie  colhiteral  recovered,  or  whether  the  committee 
shall  be  allowed  to  go  on  with  the  collection  of  the  paper  so  held.     Please  inform 
me  also  whether  the  committee  had  better  put  the  protested  notes  iu  suit. 
Yours,  respectfully, 

PoBKRT  ^I.  Yardley, 

Ueveiver. 

Treasury  I  >epa im  m i.xt. 
Office  of  the  Comptroller  of  the  Cli{i;ency, 

H'ashint/lon,  Mat/  :?8,  1891. 
W.  P.  Drew, 

National  Bank  Exam,iner,  8939  Chestnut  Street,  Philadelphia,  Pa.: 

Telegram  received.  Certified  copies  of  condition  rejjorts  r<«ine8l4Ml  have  been 
mailed  to  your  address  to-day. 

K.  M.  Nixox, 

Acting  Cmnpiroller, 


Treasury  Department, 
Office  of  Comptroller  of  Currency, 

Washington,  D.  C,  May  28,  1891. 

Sir-  Your  letter  of  the  25th  instant  is  received,  stating  that  the  clearing-house 
committee  holds  about  $247,000  of  bills  receivable,  and  $101,000  protested  paper  as 
collateral,  securing  $90,000  in  loan  certificates  bearing  6  per  cent  interest. 

In  reply  to  your  inquiry  with  respect  to  interest,  you  are  advised  that,  as  at  present 
advised,  no  interest  can  be  collected  upon  the  clearing-house  loan  as  against  your 
trust  from  and  after  the  date  of  the  suspension  of  the  Keystone  National  Unnk.  I  In 
courts  have  held  that  contracts  made  by  a  national  bank  lapse  at  date  ot  sus]>eiision, 
and  the  courts  have  also  held  that  no  interest  on  any  claim  against  an  insolvent 
national  bank  in  the  hands  of  a  receiver  can  be  allowed,  except  when  the  assets  are 
more  than  sulticient  to  pay  the  principal  of  all  claims  in  full.  .  ,    ^,       , 

As  to  suit  on  the  protested  notes,  you  can  probably  arrange  with  the  clearing- 
house committee  for  a  delivery  of  such  notes,  to  enable  you  to  put  them  in  suit,  the 
procee<ls  less  expenses  to  be  applied  in  payment  of  the  clearing-house  loan  it  it 
should  be  necessary  for  its  extinguishment. 

Very  resiiectfully,  ,^    ,,    ^. 

•^  R.  M.  >ixoN, 

Dexnity  and  Acting  Comptroller. 

Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa. 


[Teiegi-ain.] 


Philadelphia,  June  1,  1891. 
Hon.  Benjamin  Harrison, 

Prest.  U.  S.,  Washington,  D.  C: 
Since  the  credit  of  our  whole  national  banking  system  is  involved  in  the  matter, 
we,  the  citizens'  committee  of  fifty,  therefore  urge  that  the  most  earnest  efforts 
should  be  made  to  discover  and  punish  the  perpetrators  of  the  Keysto.ie  National 
Bank  defalcation,  and  that  the  Federal  authorities  use  every  means  in  the  power  of 
the  Government  to  secure  the  apprehension  of  Gideon  W.  Marsh,  the  defaulting  and 
absconding  president  of  the  Keystone  National  Bank. 

Joseph  De  F.  Junki.n, 
Chairman  Executive  Committee,  Citizens'  Comm.  of  Fifty. 


Philadelphia,  Pa.,  June  2,  1891. 
Sir  :  I  forward  this  day  to  your  oflice  schedules  of  assets  of  Keystone  Nat.  Bank, 
and  receipt  for  assets  turned  over  by  me  to  the  receiver. 

very  re8peotfully,  ^,    j.    ^^^^^^^ 

Nat.  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C. 


Philadelphia,  .fnne  2, 1891. 

Sir:  The  interest,  both  public  and  private,  in  the  Keystone  Nati<Mial  Bank  case 
seems  to  increase  daily,  and  many  papers,  as  well  as  city  oflicials,  are  c(nidemning 
the  Department  for  permitting  the  bank  to  remain  open  from  Jan'y  until  its  closing 
in  March.  This  afternoon  I  was  again  before  the  committee  of  councils  having  in 
charge  an  investigation  in  regard  to  the  bank,  particularly  respecting  tlu'  deposit 
there  of  the  city  treasurer,  now  in  prison. 

I  stated  that  Mr.  Bardsley  repeatedly  said  to  me,  to  the  depositors,  and  stockholders 
at  their  meetings  for  rehabilitating  the  bank,  that  the  total  amount  owing  to  hiin  and 
the  city  was  not  much  over  $600,000,  and  that  I  believe  he  had  so  stated  to  ine  in 
Washington,  and  accepting  that  statement  as  true,  there  were  reasonable  grounds 
for  endeavoring  to  put  the  bank  on  its  feet.  Am  I  right  in  this  belief?  The  com- 
mittee's chairman,  Mr.  Thebdore  Etting,  afterward  ottered  a  resolution  requesting 
the  President  (I  give  the  language)  ''to  snbp<ena  the  ('<unptroller  of  the  Currency  to 
appear  before  this  committee/'  to  explain  why  the  Government  had  not  finally  closed 


208 


INVESTIGATION   OF   NATIONAL   BANKS. 


the  bank  immediately  on  disclosure  of  the  deficit  by  Mr.  Mai-sh  in  January.    This 
resolution,  after  being  ridiculed  by  some  of  the  committee,  was  defeated. 

For  myself  (and  Tarn  incessantly  assailed  in  every  qnsirter  for  the  unfortunate 
results)  I  wish  some  persons  or  person  having  the  reqniHitc  ability  and  experience 
could  be  detailed  to  go  over  the  whole  matter  :ind  reporl,  because  I  am  confident 
that  the  conclusion  would  not  liurt  me.  I  did  rei|U('st  the  V.  11.  Asso.  to  make  such 
investigation  by  a  committee,  but  in  an  appreciative  letter  they  declined  to  do  so. 
1  hear  no  complaint  at  my  conduct  in  the  performance  of  my  duties  in  the  case 
referred  to  from  the  banks  here,  and  would  be  glad  to  know  whether  any  complaints 
from  such  sources  have  been  made  to  you.  On  the  contrary,  manv  hayc'  taken  pains 
to  express  their  entire  satisfaction  with  all  I  have  done. 

I  i-esume  my  regular  work  here  in  a  day  or  two.  The  schedules  for  the  Spring 
Ctarden  Nat.  Bank  will  go  to-morrow.     Those  for  the  Keystone  went  to-dav. 

Although  the  attacks  by  newspapers  on  me  continue  with  slight   abatement  of  se- 
venty, I  do  not  lose  my  etxuanimity  nor  my  temper. 
Very  respectfully, 

AV.  r.  Dkew, 

--.        ,,    r,    ^  Nat.  Bank  Ex^n, 

Hon.  L.  S.  Lacev, 

ComptrolJei' of  the  iurnnvy,  WashimjtoH,  D,  C, 


INVESTIGATION   OF   NATIONAL   BANKS. 


Philadelphia,  June  dth,  1891. 
•  /l^*  I^»^**  j"«t  ^»'en  shown  a  despatch  from  Miller,  Washington  representative 
of  the  Evening  'I'elegraph,  which  has  been  refeiTcd  to  me  as  to  its  correctness,  statins 
that  my  report  of  January  24th  of  the  Keystone  National  Bank  was  the  tirst  iutima- 
tum  that  you  had  from  me  of  the  $600,000  deficit  of  the  Lucas  estate,  and  that  I  had 
made  settlement  of  the  same,  accepting  for  the  l»auk  property  in  rhiladclphia  and 
troni  the  sea  shor<^  in  that  am<»unt.  It  states  that  this  procedure  was  effected  solely 
on  my  responsibility  and  without  knowledge  of  the  oftice.  As  I  kejit  no  copv  of  let- 
ters or  telegrams  to  you  concerning  this  deficit,  I  will  thank  you  to  forward  to  me  bv 
return  mail,  if  possible,  copies  of  any  correspondence  in  anv  form  between  the  Comi)- 
troller  and  myself  prior  to  that  date  of  my  report,  and  alter  th(^  disclosure  of  Mr. 
Marsh  early  m  January.  I  think  The  Telegraph  will  suspend  publication  of  Miller's 
despatch  until  I  am  able  to  relieve  myself,  through  yonr  office,  of  the  imputation 
therein  contained. 
An  early  reply  will  greatly  oblige, 
Yours,  respectfully, 

[Not  signed.] 

„    ,.    ^  National  Banlc  Examiner. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currencif,  H'a>ihin(fton,  D.  C,  S p.  m. 


TkKASIH  V    j  )KI'AKTMKXT, 

Ofuck  of  Comptkolleu  of  Currexcy, 

Washington,  D.  C,  June, 5,  1891. 
My  Dear  Sir:  Your  favor  of  the  2d  instant  came  to  hand  by  due  course  of  mail. 
I  note  what  you  say  in  reference  to  the  proposed  resolution  of  Mr.  Etting  and  also 
the  attacks  made  upon  yourself. 

I  also  note  that  you  are  pretty  near  through  with  your  work  connected  with  the 
two  failed  banks  and  will  soon  be  ready  to  resume  your  regular  duties.  I  have  to 
suggest  that  before  resuming  examinations  I  should'  like  to  have  a  conference  with 
you  and  go  over  the  matters  which  haye  attracted  so  much  attention  durin"^  the  past 
two  or  three  months.  You  have  been  so  fully  employed  as  custodian  of  the  assets  of 
these  two  insolvent  banks  that  I  did  not  care  to  have  you  take  the  time  to  come  over 
here,  but  as  soon  as  I  can  get  a  little  leisure  and  you  are  free  from  the  banks  in  ques- 
tion, I  shall  be  glad  to  arrange  for  you  to  come  over  for  a  conference. 
Very  respectfully, 

E.  S.  Lacey, 

Mr.  W.  P.  Dhkw,  ■  i'omptrolh,: 

National  Bank  Examiner,  S939  Chestnut  St.,  Philadelphia,  Pa,    " 


209 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  5,  1891. 
Sir:  I  am  in  receipt  of  your  favor  of  the  4th  instant  in  which  you  refer  to  the  fact 
that  the  Lvenmg  Telegram  has  a  despatch  from  its  Wasliington  correspondent 
statiiiy:  that  your  r(])ort  of  January  24th  of  the  Keystone  National  Bank  was  the 
first  intimation  that  the  Comptroller  had  from  you  of  the  $600,000  deficit  of  the  Lucas 
estate,  and  that  you  had  made  a  settlement  of  the  same,  accepting  for  the  bank  prop- 
erty in  Philadelphia  and  from  the  sea  shore  in  that  amount. 

I  have  ha(l  a  diligent  search  made  since  the  receipt  of  your  letter,  but  can  find  no 
comiininication  mdicatin;;;  that  you  had  informed  me  previous  to  your  report  of 
January  24th.  j  i 

I  will  haye  the  search  continued  to-morrow  and  advise  you  if  anvthinff  is  found 
VeVy  respectfully,  j         b 

E.  S.  Lacey, 

Mr.  W.  P.  Drew,  Comptroller, 

National  Bank  Examiner,  3939  Chestnut  Street,  Philadelphia,  Pa. 


rRolMTl  M.  Vanlloy,  meivcr  of  ^'^vstone  Natiomil  Bauk.^1326  and  1328  Chestnuf,  street,  opposite  the 

Philadelphia,  ilf ay  39th,  1891. 
Sir  :  I  enclose  herewith  bill  of  K^ad  ife  Petit,  attorneys  for  the  Keystone  Bank  for 
l>iofessioual  services  to  the  date  of  suspension. 
Will  you  kindly  instruct  me  what  is  to  be  done  in  the  matter. 
Yours,  respectfully, 

Robert  M.  Yardley, 

Hon.  E.  S.  Lacey,  Receiver, 

Comptroller  of  the  Currency. 


Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  5,  ^1891. 
1  i'>.^**Ar  l^*t<^^of  tlf  29th  ult.  is  received,  enclosing  a  statement  of  account  ren- 
dered by  Messrs.  Read  &  Pettit,  for  professional  services  in  behalf  of  the  KeTStone 
National  Bank  up  to  the  date  of  its  suspension,  and  the  account  is  returned  herewith 
Please  investigate  the  matter  thoroughly,  so  that  you  mav  be  able,  with  a  fuli 
knowledge  of  the  character  of  the  services  and  of  the  time  employed,  to  recommend 
to  ihe  (  omj.troller  what,  in  your  opinion,  the  total  charge  should  be  not  to  e^eed 
such  reasonable  aniouut  as  would  ordinarily  be  charged  for  similar  services  by  attor- 
neys in  Philadelphia  o    good  repute.     The  charges  appeax  to  be  much  too  large. 

It  is  necessary  that  there  shall  be  an  understanding  as  to  compensation  of  the  dis- 
trict attorney  as  counsel  for  services  rendered  in  behalf  of  your  trust.  Please  eive 
this  matter  immediate  attention  and  report.  Whatever  arrangement  mav  be  madT  it 
must  be  understood  that  no  fees  will  be  allowed  which  are  not  satiTfactor^to  the 
Comptroller  and  the  Solicitor  of  the  Treasury.  «^i'"ij'  to  me 

Very  respectfully, 

E.  S.  Lacey, 
Hon.  Robert  M.  Yardley,  Comptroller,    ^ 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 
^  ex.  ?rflr«^fwgr/ow,  D,  C,  June  6,  'l891. 

Dear  Sir:  In  further  reply  to  your  letter  of  the  4th  instant,  I  be?  leave  to  sav 
that  a  very  careful  examination  of  the  files  fails  to  discover  ^nvcfommuni^tion 
rom  you  referring  to  the  Lueas  def-dcation  in  connection  with  the  KeXTN^tW 
Jiank  prior  to  your  report  of  the  24th  of  January,  and  letter  of  the  same  <b,t 
\  cry  respectfully, 

E.  S.  Lacey, 
\N  .   V.  Drew,  Comptroller, 

National  Bank  Examiner,  39S9  Chestnut  St.,  Philadelphia,  Pa, 

3792 14 


Mr, 


M!t^; 


I 


A] 


210 


INVESTIGATION   OF    NATIONAL    BANKS. 


Philadelphia,  June  7,  1S91. 

Siii:  lu  answer  to  your  iavor  of  tlio  4th  inst.  I  have  to  say  that  unless  1  hear  to 
the  contrary  I  shall  ^o  to  Washington  on  Tuesday,  the  i)th  inst.,  for  the  conference 
which  you  suggest.  1  am  summoned  to-morrow  afternoon  again  hefore  the  council's 
committee.     Mr.  Wananiaker  is  also  re(j nested  to  be  present. 

In  regard  to  connnunicating  to  you  the  disclosures  of  the  tresis.'  deficit  before  the 
receipt  of  my  report  of  .lan'y  26,  although  I  am  tirm  in  my  belief  that  I  did  so  im- 
metliately  on  the  facts  being  made  known  t«»  me,  1  am  nevertlub'ss  unable  to  furnish 
any  record  of  the  same.     I  still  hope  that  some  proof  that  I  <lid  do  so  may  be  found. 

I  am  confident  that  w^hen  I'see  you  I  shall  be  able  to  satisfy  you  that  my  conduct 
in  the  entire  matter  has  been  correct.  I  am  naturally  very  anxious  as  to  the  result, 
as  I  am,  and  have  been,  the  target  against  which  all  sorts  of  rumors  and  accusations 
are  directed. 

I  saw  yesterday,  for  the  first  time  in  several  weeks,  some  of  our  bank  presidents, 
and  believe  that,  generally,  I  still  have  their  entire  confidence. 

I  know  I  deserve  it. 

I  shall  report  on  investigations,  as  I  have  already  intimated,  when  the  prox)er  time 
comes,  and  I  hope  it  may  be  accorded  me  full  and  thorough,  and  by  parties  not  inter- 
ested in  my  favor. 

I  will  see  you  Tuesday  on  this  subject  as  well  as  on  the  general  condition  of  atiairs 
here. 

Very  respectfully, 

W.  P.  Drew, 
NaVl  Bank  Examiner. 

Hon.  E.  S.  Lacey, 

Comptrollei'  of  the  Cuirenty,  Waahintjlon,  D.  C, 


PuiLAnKLPHiA,  Junes,  1891. 

Sir  :  This  afternoon  I  have  been  before  the  councils  committee  for  nearly  two  hours. 
The  examination  was  desult«u'y  and  often  «'(uifusing.  Questions  of  all  degrees  of 
pertinence  and  impertinence  were  rained  upon  me,  which  I  endeavored  to  ansAver 
as  correctly  and  with  as  much  efpianimity  «s  1  could  command.  The  objective  point 
was  to  censure  me  for  not  summarily  closing  the  bank  on  January  8tli,  and  thus  i>re- 
ventin^,  as  was  charged,  innocent  depositors  from  placing  their  uuuiey  from  that  <latc! 
until  March  20,  the  day  of  closing,  in  a  bank  known  by  me  to  be  iuscdvent.  No  weight 
at  all  was  given  to  any  statement  to  the  etfect  that  the  delay  was  from  a  hope  of 
placing  the  bank  on  its  feet,  or  that  the  depositors  and  stockholders  wen*  anxious 
to  prevent  the  appointnu^it  of  a  receiver.  The  recovery  fr<nn  the  Lucas  estate, 
in  January,  of  the  amount  disclosed  to  have  been  taken  out  before  was  allowe<l  no 
consideration,  and  the  severest  censur«'s  were  made  on  the  action  of  the  Department. 
Insinuations  of  improper  iufiuence  here  and  in  Washington  were  freely  indulged  in, 
and  no  chance  for  any  explanation  was  given.  I  belit?ve  I  shall  deeiine  to  apjiear 
again  if  summoned;  but  this  is  very  dangerous,  as  liable  to  strong  suspicion  of  con- 
cealment. 

Mr.  Wanamaker  appear(Ml  also  with  a  written  statement  fully  exonerating  him 
from  the  many  offensive  an<l  criminating  reports  which  have  been  so  rife  in  theuews- 
pa]>ers  here  and  idse where.  Where  this  wnll  end,  if  any  end  there  be,  no  one  can 
forecast.  None  of  our  leading  bankers  have  been  upon  the  stand,  with  a  few  ex- 
ceptions, and  these  were  examined  chiefly  on  the  point  of  paying  interest  to  the 
city  treasurer. 

As  I  desire  to  confer  Avith  some  of  the  leading  i)re8ident8  before  I  go  to  Washing- 
ton, I  intend  to  do  so  in  the  forenoon  of  to-morrow  before  leaA'iug  to  see  you.  It  is 
my  belief  that,  generally,  they  do  not  approve  of  the  present  i)roeeedings,  but  the 
popular  tide  of  feeling  is  so  str<mg  that  they  may  be  forced  to  Join  it. 

I  think  Mr.  W^anamaker's  testimony  greatly  <deared  the  field  from  many  impor- 
tant allegations,  but  this  may  only  intensify  the  etforts  to  pla<e  the  Department  and 
me  in  a  still  more  unfavorable  light. 

If  there  were  any  tribunal  h<^re  l)efore  which  all  the  corre8i)ondence  and  reports 
concerning  the  bank  for  a  considerable  period  could  be  safely  placed  for  close  exam- 
ination by  unprejudiced  and  comi)eteut  persons,  it  would,  I  think,  much  relieve  the 
feeling  here.  Is  there  any  way  by  which  this  could  be  douef  Such  an  exhibition, 
I  am  sure,  would  relieve  the  ottice  and  m<^  of  all  want  of  inca]»acity. 

In  regard  to  my  earlier  information  to  you  of  the  trouble  at  the  bank,  I  recall  that 
when  I  was  in  Washington  at  the  Boudoin  rennion  late  in  Jan'y,  or  early  in  Feb'y, 
you  said  to  me,  if  I  remember  correctly,  that  some  ]>aper8  from  me  on  the  subject 
"were  in  yoarj^oclcet  and  not  in  the  tiles.    Am  I  right?    If  so,  this  may  explain  and 


INVESTIGATION    OF   NATIONAL   BANKS. 


211 


justify  my  belief  that  I  did  send  some  fractionary  word  before  I  sent  the  complete 
report  of  Jan'y  26.     But  I  shall  see  you  shortly,  and  will  refer  to  this  matter  then. 

Gen.  Fisher  is  hard  at  work  at  the  Spring  Garden  Nat.  Bank,  but  the  depositors 
are  ur«'ing  and  beginning  to  find  fault  with  him. 

Mr.  Yardley  is  serene  in  his  new  quarters,  and  everything  there  seems  to  be  going 
along  quietly. 

I  expect  to  have  my  list  completed  there  to-morrow,  compared  and  ready  to  for- 
ward to  the  oflSce. 

I  have  been  pretty  much  burdened  lately,  and  shall  be  glad  to  get  relieved  as  soon 
as  possible.    I  am.  nevertheless,  very  anxious. 
Very  respectfully , 

W.  P.  Drew, 
Nat.  Bank  Examiner, 
Hon.  E.  S.  Lacey, 

Coniptroller  of  the  Currency ,  Washington,  D.  C, 


■I't?. 


Philadelphia,  June  9, 1891. 

Sir:  I  fully  realize  the  peril  in  which  I  may  stand  in  regard  to  my  continuance  in 
the  place  which  I  have  so  long  held,  but  I  rely  on  the  consciousness  of  having  done 
my  duty  well  and  without  favor,  and  on  the  belief  that,  as  the  Comptroller  of  the 
('urrency,  you  will  not  withdraw  your  confidence  in  me  officially  without  being 
convinced,  after  full  and  impartial  investigation  by  competent  and  unprejudiced 
authority,  that  I  am  no  longer  worthy  to  retain  it. 

My  conduct  in  the  matter  of  the  Keystone  National  Bank  of  this  city  has  been  such 
as  my  best  judgment  has  ai>proved,  and  in  it  I  have  uniformly  acted  within  my  au- 
thority, and  with  the  full  concurrence  of  those  most  interested. 

Whether  the  unjust  and  malicious  re])orts  of  incompetency  with  which  the  papers 
have  been  filled  during  these  last  exciting  weeks  and  the  severe  insinuations  which 
have  been  made  during  the  hearing  in  the  Bardsley  matter  by  a  committee  of  then 
city  councils,  have  weakened  the  efficiency  of  my  service  time  only  can  show. 

Meanwhile  I  am  entitled  to  the  benefit  of  the  doubt,  and  I  shall  expect  to  be  per- 
mitted before  long  to  resume  my  regular  work  among  the  lianks.  As  I  proceed  in 
this  it  will  readily  be  manifest  whether  my  continuance  shall  be  lasting.  I  have  no 
wish  to  embarrass  the  Comptroller  nor  to  continue  permanently  in  a  field  where  I 
can  not  do  good  service;  but  this  question  can  only  be  settled  by  trial.  I  have  sc^n 
a  few  of  our  leading  presidents  to-day,  and  you  will,  I  think,  hear  from  some  of  them 
strong  words  in  my  favor.  I  shall  resume  my  visits  to-morrow,  and  shall  be  much 
disappointed  if  I  do  not  receive  more  expressions  of  confidence. 

I  am  in  no  sense  *'  canvassing"  in  this  matter,  nor  would  I  allow  anyone  to  do  so  for 
me.  I  hope  soon  to  hear  from  you  that  you  can  see  me  on  the  subject  so  important 
to  me. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner, 

Hon.  E.  S.  Lacey, 
,    ComptroUer  of  the  Currency,  Waslilnglon,  D.  C, 


.U 


I 


Select  Council, 
PhiladelpJiia,  June  9,  1891. 
Dear  Sir:   At  a  meeting  of  the  subconnnittee  of  the  committee  on   finance  to 
consider  the  city  deposits  in  the  Keystone  National  Bank  and  other  banks,  held  this 
day,  the  following  resolution  was  adopted : 

Kesolved,  that  the  receiver  of  the  National  Keystone  Bank  be  requested  to  furnish 
the  committee  with  the  following  books  of  the  Keystone  National  Bank :  Stock  ledger, 
stock  transfer,  certificate  and  dividend  books. 
Attest : 

W.  Van  Ostex,  Chairman, 
John  Ekstein,  Secy  of  Committee, 
Robert  M.  Yardley,  Esq., 

Receiver  of  the  National  Keystone  Bank, 


i: 


212 


INVESSTIGATION    OF    NATIONAL    BANKS. 


[Tek'graiii.] 


INVESTIGATION   OF   NATIONAL   BANKS. 


21  a 


Phila.,  Pa.  (no  date),  1891. 
Hon.  E.  S.  Lacky, 

Comptroller  of  Cnrrfiicif,  WaHh^n: 

Can  not   (onio  before  fonr-tliirty   train  to-<la.v  or  seven  a.  m.  train   tomorrow. 
Whieli  8liall  it  be  ?     Answer  !Si>rin^  (Janb-n  Naticnial  Bank. 

W.  P.  Drew. 
(Office  stamp  shows  received  ,Inne  9,  1801.) 


Treaspry  Department, 
Office  of  Comi'troi.leii  of  the  Currency, 

H'nshhtffton,  />.  C,  June  tO,  1801, 
Hon.  Charles  Foster, 

Secretary  of  the  Treositry: 
Sir:  I  have  the  honor  to  submit  herewith  »  statement  of  the  facts  loading  up  to 
the  tinal  closing  of  the  Keystone  National  Bank  and  the  appointment  of  a  receiver 
therefor. 

The  tirst  information  re<eived  by  me  in  reference  to  what  has  been  known  as  the 
Lucas  defalcation  was  contained  in  a  communicati<m  ad<lrcssed  to  me  by  William  P. 
Drew,  bank  examiner  for  Philadelphia,  dated  .January  24,  1891,  and  received  by  me 
on  the  26th  of  the  same  month. 
The  following  is  a  copy  of  that  communication: 

Philadelphia,  Jan'y  24,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the   Currcncif,  Waxhington,  D,  C: 

Sir:  On  entering  on  the  examination  of  the  Keystone  National  Bank,- of  this  city, 
on  the  9th  inst.,  I  was  informed  by  the  president  that  there  would  be  disclosed'a 
hitherto  etfectually  concealed  debt  t«)  the  bank  of  its  late  president,  John  C.  Lucas, 
amounting  to  $600,000.  This  confession  has  been  fully  verified  by  subsequent  de- 
velopments made  by  me  in  examining  the  bank. 

It  appears  that  Mr.  Lucas,  during  his  presidency  of  the  bank,  had,  with  the  con- 
nivance of  the  cashier,  Mr.  Marsh,  now  the  president  of  the  bank,  carried  out,  by 
adroit  manipulation  of  the  accounts  of  the  bank  for  a  series  of  years,  a  scheme  for 
systematic  abstraction  from  the  bank  of  large  sums  to  assist  his  speculations  in 
real  estate  at  Spring  Lake  and  Sea  Girt,  New  Jersey,  as  well  as  in  the  construction 
of  the  large  building  on  Chestnut  st.  here,  now  occupied  in  part  by  the  bank.  The 
method  of  concealment  of  this  large  diversion  of  the  bank's  funds  seems  to  have 
been  to  charge  the  amounts  taken  to  the  general  account  of  deposits,  and  so  to  alter 
individual  balances  on  the  ledgers  as  should  make  their  aggregate  credits  tit  the 
general  account  at  the  time  of  tJie  examination.  Sometimes  the  foreign  bank  bal- 
ances were  also  ''padded"  to  correspond  to  the  deficit. 

To  ])rotect  the  bank  so  far  as  i)ossible,  I  took  measures  to  secure  for  the  bank 
without  publicity  whatever  property  belonged  to  the  estate  of  Mr.  Lucas,  and  after 
a  few  days  succeeded  in  <d)tainiifg  the  property  used  by  the  bank  as  a  banking- 
house,  for  $225,000,  and  the  property  at  Spring  Lake  and  8ea  Girt,  New  Jersey.  In 
these  endeavors  I  was  assisted  by  Hon.  John  R.  Read,  U.  S.  district  atty.  Jiere, 
whom  I  employed  to  aid  in  the  transactions. 

There  may  be  still  more  i)roperty  of  the  l^ucas  estate  that  can  be  secured,  but  it  is 
too  early  to  say  jjositively. 

The  discovery  was  reported  to  the  clearing-house  committee,  and  its  opinion  is,  in 
view  of  all  the  facts  so  far  known,  thcat  further  time  be  allowed  the  directors  of  the 
bank  to  raise  some  $300,000  to  put  into  the  bank  This  purpose  is  in  active  course  of 
completion,  and  it  is  hoped  that  by  this  fresh  supjdy  of  funds,  with  a  radical  change 
in  the  management  of  the  bank  soon  to  be  effected,  the  bank  can  be  successfully  re- 
habilitated. 

It  appears  that  Mr.  Marsh,  formerly  the  cashier  of  the  bank,  was  at  first  ignorantly 
led  ii4o  the  irregular  transactions  by  the  president,  and  that  the  latter,  on  his  death- 
be<l,  exacted  a  ])romiso  from  Mr.  Marsh  to  «*ontinue  the  deception  under  representa- 
tions that  the  nuMiey  abstracte<l  would  mion  be  returned  to  the  l>ank  from  the  results 
of  Mr.  Lucas' enter])riseH. 

Then^  does  not  appearto  beany  evidencethatMr.  Marsh profit<*d  in  the  least  by  these 
irre'iiilarities. 

.Since  the  disclosure  he  has  faithfully  an«l  earnestly  cooperated  in  all  ettbrts  to  as- 
sist the  bank  to  secure  property  for  this  debt,  and  his  intimate  knowledge  of  all 
matters  connected  with  the  affair  has  been  of  great  use. 


Beyond  the  directors  of  tbe  bank,  the  seven  members  of  the  C.  H.  committee,  the 
counsel  on  either  side,  and  myself,  no  one  has  any  knowledge  or  siispiiion,  so  far  as 
I  can  say,  that  the  b:ink  is  in  any  troiiide,  and  it  iji  earnestly  hoped  thai  no  j»u))li«ity 
be  given  to  the  atVair  until  the  bank  shall  be  rehabiliated,  or  all  ertorts  to  that  end 
found  to  j>rove  futile. 

I  enclose  a  sort  of  abstract,  which  will  show  the  condition  of  the  bank  yesterday 

morning,  the  24th  instant.     1  shall  visit  Washington  on  Tuesday  next,  the  27th 

instant,  to  attend  a  college  reuuicm,  and  will  call  up«ni  you  at  your  oifice  on  that  day. 

Should  you  wish  to  telegraph  me  to-morrow,  please  send  to  ''Keystone  National 

Bank."     Any  letter  may  be  sent  to  me  at  my  house,  3939  Chestnut  St. 

Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 

P.  S. — In  a  few  days  I  shall  be  able  to  forward  to  you  a  full  rei)ort  of  the  condi- 
tion of  the  bank. 

Accompanying  this  letter  was  a  preliminary  statement  of  the  resources  and  liabil- 
ities of  the  association,  which,  after  considering  all  probable  losses,  as  stated  by  the 
examiner,  left  the  capital  stock  of  $500,(K)0  intact,  and,  in  addition  thereto,  a  net 
surplus  of  $55,819.20. 

It  will  be  noticed  that  the  bank  examiner,  in  the  communi«'ation  above  quoted, 
states  that  an  indebtedness  of  the  Lucas  estate  had  been  theretofore  concealed, 
anmunting  to  $6(X),000,  and  that  the  amount  thereof  had  been  verified  by  the  exam- 
inarttm  8ubs«M|uently  made  by  the  bank  examiner.  It  is  also  to  be  observed  that,  so 
far  as  the  letter  shows,  this  confession  was  made  by  President  Marsh  on  the  9th  of 
.January,  of  his  own  motion,  and  that  he  was  said  to  have  been  at  first  ignorantly  led 
into  the  irregular  transactions  by  the  late  President  Lucas,  whose  ])rotege  he  was 
and  to  whom  he  was  under  very  great  obligations,  and  that  Mr.  Lucas  had  on  his 
<leathbed  exacted  a  promise  from  Mr.  Marsh  to  continue  the  decei)tion  until  the 
missing  sum  could  be  made  good  from  the  results  of  the  Lucas  enter})rises. 

It  is  further  to  be  noted  that  the  statement  is  made  that  no  evidence  appeared 
that  Mr.  Marsh  had  j)rofited  in  the  least  by  these  irregularities,  and  that  he  had 
since  the  disclosure  faithfully  and  earnestly  cooperated  in  all  etforts  to  assist  the 
bank  to  secure  ])roperty^  to  make  good  the  indebtedness;  and  that  his  intimate 
knowledge  of  matters  connected  with  the  affair  was  almost  indispensable. 

It  is  also  to  be  observed  that  the  letter  states  that  the  directors  of  the  bank,  seven 
members  of  the  clearing-house  committee,  the  counsel  on  either  side  (one  of  whom 
was  the  United  States  attorney  for  Philadelphia)  and  the  bank  examiner  himself, 
were  the  only  persons  who  had  knowledge  of  the  indebtedness  of  the  Lucas  estate 
and  of  the  conveyance  of  the  proi)erty,  which,  so  far  as  the  report  shows,  made  good 
the  sum  al>stracted. 

It  is  also  to  be  observed  that,  in  Mr.  Drew's  opinion,  and  jiresumably  upon  con- 
sultation with  the  gentlemen  named,  and  u])on  their  advice,  it  was  important  that 
no  publicity  be  given  to  the  affair  until  the  bank  should  be  fully  rehabilitated. 

Upon  receipt  of  this  report  the  Com])troller  was  ccmfronted  Avith  a  grave  responsi- 
bility. The  entire  country  had  but  recently  passed  through  a  crisis,  caused  by  a 
severe  monetary  stringency,  which  made  absolutely  necessary  the  issuing  of  clear- 
ing-house certificates  in  three  of  the  great  seaboard  cities.  The  uneasiness  caused 
by  this  situation  had  been  greatly  aggravated  in  Philadelphia  by  reason  of  the  fail- 
ure of  several  large  private  and  State  banking  houses,  and  by  the  run  which  had  been 
made  upon  the  Keystone  National  Bank  in  December,  under  the  effects  of  which  it 
was  still  suffering. 

For  these  reasons  the  situation  was  one  reciuiring  the  most  considerate  and  careful 
treatment,  and  anything  tending  to  shake  returning  confidence  in  financial  institu- 
tions was  to  be  studiously  avoided.  A  renewal  of  the  run  upon  the  Keystone  National 
Bank  might  have  involved  other  banking  institutions  and  produced  widespread 
ilisaster. 

It  was  also  true  that  the  Keystone  National  Bank  had  passed  through  a  severe 
crisis  in  December  and  had  been  able  to  weather  the  storm  with  $600,000  less  assets 
than  it  had  when  this  report  reached  the  Comptroller. 

It  is  evident  that  the  Comptroller  could  not  at  this  time  lawfully  i»ave  closed  the 
bank,  nor  could  he  have  even  levied  an  assessment  to  make  good  an  impairment  of 
<'apital,  as  none  existed,  according  to  this  report.  The  danger  then  was  for  a  time 
l»ast  and  the  Comptroller  decided  to  await  the  arival  of  Mr.  Drew  on  the  27th  of 
January,  the  day  following  the  receipt  of  this  communication,  when  a  full  considera- 
tion of  the  situation  in  Philadelphia  was  entered  upon  and  exhaustively  discussed. 

It  is  well  to  remember  in  this  connection  that  Mr.  W.  P.  Drew  was  the  senior  ex- 
aminer in  point  of  service,  that  he  had  been  appointed  in  1872  by  Comptroller  Knox, 
and  had  been  continued  in  otfice  by  Comptroller  Cannon  and  Comptroller  Trenholm, 
although  he  was  not  in  harmony  politically  with  the  latter,  and  that  when  the  pres- 


I 


^i 


1 

-I: 

\ 
I  ■■ 


I 


\ 


m^A 


214 


INVESTIGATION   OF   NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


215 


out  Comptroller  cntenMl  upon  the  diitios  of  his  otiire  no  in:m  stood  higher  in  point  r»f 
ability,  integrity,  and  skill  tluin  Mr.  J>r»;w. 

It  is  also  to  be  remembered  that  the  commnuication  of  Mr.  Drew  set  forth  the  fact 
that  he  hud  been  in  consultation  with  the  directors  of  the  bank,  seven  members  of 
the  clearing-house  committee,  and  the  United  States  attorney,  and  that  he  had  the 
benetit  of  their  knowledge  of  the  situation  and  their  acquaintance  with  the  bank,  its 
assets,  and  its  ofKcers. 

It  was  represented  to  the  Comptroller  by  Mr.  Drew  at  this  interview  that,  in  his 
judgment  and  in  the  opinion  of  the  clearing-house  committee,  the  property  con- 
veyed to  the  bank  by  the  l^ueas  estate  was  e(|ual  in  value  to  the  indebtedness  "which 
had  been  concealed,  and  that  in  any  event  the  creditors  of  the  bank  were  entirely 
safe. 

It  was  also  re}>resented  that  to  publi«ly  sever  President  Marsh's  connection  with 
the  bank  would  imme<liately  excite  suspicion,  and  that  it  would  be  impossible  to 
convince  the  jmblic  that  some  grave  losses  had  not  been  sustained  by  the  bank;  that 
Mr.  Marsh  was  thoroughly  rejientaiit  and  was  actuated  by  a  very  eaniest  denire  to 
do  all  in  his  jjower  to  assist  the  bank  in  recovering  any  sums  which  had  been  im- 
properly taken  from  it.  It  was,  however,  deemed  necessary  that  additional  funds 
should  be  placed  in  the  bank,  as  its  reserve  had  been  detieient  for  a  large  part  of  the 
time  since  the  run  in  December,  and,  while  tJie  real  estate  conveyed  to  the  bank 
would  ultimately  prciduce  a  sum  ecpial  to  the  debt  which  it  was  to  liquidate,  that 
the  cash  of  tlu^  bank  needed  to  be  jjromptly  reenforced,  either  by  the  sale  of  real 
estate  or  reduction  of  it«  line  of  dis<oinits.  It  was,  therefore,  after  very  serious  con- 
sideration, deeme<l  best  for  the  bank,  for  its  creditors,  for  the  other  baiikiiig  associa- 
tions, and  for  the  city  of  Philadelphia,  whose  treasurer  lia<l  an  active  account  in  the 
bank,  that  Mr.  Drew  should  cofftinue  his  examination  of  the  bank  and  promptly 
place  his  assistant,  Mr.  Jones,  in  chargj^  of  the  books,  with  the  understanding  that 
the  active  directors  of  the  bank  should  visit  it  daily.  Director  Nichols,  who  was 
most  conversant  with  the  banking  business,  was  exi>ected  to  give  especial  attention 
to  its  affairs. 

This  Avas  the  more  feasible  for  the  reason  that  Mr.  Nicluds  was  the  president  of  the 
Central  Trust  Company,  his  ottice  being  in  the  same  rocun  with  the  Keystone  National 
Bank. 

Under  these  conditions  and  for  these  reasons  the  Comptroller  did  not  insist  upon 
the  immediate  resignation  of  I*resident  Marsh,  although  it  was  distinctly  understood 
that  he  was  to  remain  there  only  so  long  as  his  services  were  absolutelv  necessary  in 
adjusting  the  irregularities  which  had  grown  uj*  under  his  management,  as  he  was, 
since  the  death  of  Mr.  Lucas,  the  only  person  living  who  was  conversant  with  the 
operations  which  resulted  so  disastrously  to  the  bank. 

The  Comptroller,  therefore,  did  not  close  the  bank  at  this  time  for  the  reason  that 
he  had  no  hiwftil  authority  to  do  so  upon  the  facts  submitted,  and  for  the  further  rea- 
son that  he  was  advised  by  the  bank-exnminer  that  the  capital  of  the  bank  was  uii- 
imi)aired,  tliat  the  creditors  were  therefore  fully  protected,  and  that  promi»t  etibrt 
would  be  made  to  replenish  the  cash  by  dejiosits'of  $:^)0,000  to  be  made  by  the  lead- 
ing ilirectors  and  stockholdei-s,  which  should  phice  it  in  funds  until  its  own  assets 
became  available. 

The  next  communication  received  from  Mr.  Drew  in  relation  to  the  matter  under 
discussion  was  a  telegram  on  the  30th  of  January,  which  reads  as  follows: 

'^Stl•ong  credit  with  clearing-house  this  morning.     Pros}»eets  encouraging." 

No  further  coinmunicatiou  ])ertaining  to  the  matter  under  consideration  was  re- 
ceived prior  to  the  visi^  of  the  Comptrtdler  to  the  city  of  I'hiladelphia,  on  the  12th  of 
Februaay,  as  a  member  of  tln^  Assay  Commission,  upon  which  occasion  he  had  an 
interview  with  Mr.  Drew  and  several  of  the  leading  directors  of  the  bank,  including 
Mr.  McFadden,  Mr.  Nichols,  and  others  of  the  boar«l  whose  names  can  not  now  b«i 
recalled.  There  seemed  to  be  a  very  earnest  iMiri»ose  shown  upon  the  part  of  these 
directors  to  immediately  pay  in  any  sum  necessary  to  make  good  any  deficit  which 
the  examination  then  still  in  ju-ogress  should  develoj),  and  it  was  agreed  that  t4ie 
reserve  of  the  bank  should  be  restored  and  maintained. 

The  Com[»troller  at  this  time  urged  upon  Examiner  Drew  that  the  examination 
should  be  completed  at  the  earliest  date  possible,  in  order  that  the  funds  of  the  bank 
might  be  re])lenish<;d  by  the  payment  of  whatever  sum  was  necessary  to  make  good 
its  impairaient  of  capital,  if  any  appeared,  and  he  parted'with  the  directors  attend- 
ing the  conference  firmly  impressed  with  the  belief  that  they  were  able  and  willing 
to  place  the  bank  in  in  entirely  satisfactory  condition  as  soon  as  it  was  determined 
what  amount  was  necessary  for  the  purpose.  At  this  time  the  Comptroller  asked 
Examiner  Drew  for  a  revised  statement  of  the  condition  of  the  bank,  which  he 
promised  to  complete  at  the  earliest  date  practicable  and  forward  l)y  mail. 

It  was  also  agreed  that  a  full  meeting  of  the  board  of  directors  wa«  to  be  held  and 
arrangements  made  for  the  prompt  payment  of  any  assessment  which  might  become 
necessary  upon  the  facts  developed  in  the  final  report  which  was  to  be  made. 


The  next  communication  received  from  Mr.  Drew  was  uiub'r  dateof  F«d)ruary  16th, 
which  reads  as  follows: 

.    <' Philadelphia,  Pa.,  Feb.  16,  1891. 

"Hon.  E.  S.  Lacey, 

"  Comptroller  of  the  Currency,  Washington,  D.  C: 

**  Sir  :  I  have  arranged  to  lay  before  the  board  of  directors  of  the  Keystone  National 
Bank  here  your  conclusions  with  reference  to  an  assessment  on  the  capital  stock  of 
the  bank  at  their  meeting  to-morrow.  Some  of  the  stockholders  have  already  ex- 
pressed to  me  their  willingness  to  pay  their  proportion.  I  propose  to  lay  before  the 
dire<'tois  to-morrow  a  complete  statement  of  the  condition  of  the  bank  at  that  time, 
and  to  agree  with  them  upon  the  amount  of  losses  of  all  sorts  likely  to  accrue,  and 
shall  reduce  all  values  to  a  fair  minimum.  I  hope  to  mail  to  you  to-morrow  evening 
my  report.  1  learn  that  Mrs.  J.  C.  Lucas,  widow  of  the  late  president,  intends  to 
sail  for  Europe  within  a  short  time.  As  she  owns  2,000  shares  ($100,000)  stock  of  the 
bank,  action  should  be  taken  at  once. 

"  Please  forward  to  me  written  instructions  on  which  I  can  act.  The  bank  was  a 
creditor  at  the  clearing-house  this  morning  $49,400,  and  everything  was  quiet  as 

usual. 

'*Very  respectfully, 

"W.  P.  Drew, 

*^Nat.  Bank  Examiner." 

One  day  later  I  received  from  him  the  following  communication,  dated  February 
17th,  viz : 

*' Keystone  National  Bank, 
"  1326  and  1328  Chestnut  Street,  Opposite  U.  S.  Mint, 

''Philadelphia,  Feb.  17,  1891. 

"Hon.  E.  S.  Lacey, 

'*  Comptroller  of  the  Currency,  Washinyton,  I).  C: 

"Sir:  I  have  the  honor  to  enclose  herewith  a  report  of  the  condition  of  this  bank 
at  the  close  of  business  on  the  16th  inst. 

*'  I  regret  that  I  have  not  had  time  to-night  to  transfer  the  same  to  the  appropriate 
blank  form.  As  it  is,  it  will,  1  hope,  convey  all  attainable  information  regarding  the 
bank  at  present. 

''It  will  take  a  very  long  time  to  fully  elucidate  the  methods  by  which  so  large  a 
part  of  the  capital  stock  has  been  abstracted  without  disclosing  the  deficit  in  the 
books  and  acc'ts  of  the  bank.  That  the  whole  amount  of  the  loss  has  been  appro- 
priated by  the  late  president  and  his  friends  I  am  more  and  more  convinced.  I  have 
felt  that' the  present  president,  who  was  cashier  under  Mr.  Lucas,  has  not  been 
involved  in  the  depredation  further  than  to  have  been  the  obedient  instrument  of  a 
peculating  and  designing  chief.  But  within  a  day  or  two  I  have  been  forced  to 
entertain  suspicions  of  him.  I  hope  these  suspicious  are  groundless,  but  I  shall 
endeavi»r  to  satisfy  myself  as  soou  as  1  can. 

"  I  met  the  board  of  directors  to-day,  and  laid  your  conclusions  before  them.  While 
some  are  willing  to  pay  the  required  assessment,  others  fear  that  such  an  order  would 
create  another  attack  on  the  bank,  and  I  should  not  be  sur})rised  if  a  committee  from 
the  board  visited  you  this  week  to  further  discuss  the  matter. 

"The  bank  settled,  in  debt,  $10,000  this  morning  at  the  clearing-house. 

"Everything  seems  to  be  moving  along  in  the  accustomed  quiet  way. 

"  If  the  enclosed  report  is  not  satisfactory,  in  form  or  otherwise,  will  you  please 
return  it,  and  I  will  transfer  it  to  the  proper  blank  form. 
"  Very  respectfully, 

"W.  P.  Drew, 
"  Nat.  Bank  Examiner 

"P.  S. — Mr.  D.  P.  S.  Nichols,  of  the  board  of  directors,  has  couseuted  to  become 
vice-i)re8ideilt  of  the  bank  for  a  time  at  least.  He  is  a  very  proper  selection  for 
that  trust,  and  will  supervise  all  the  operations  of  the  bank." 

This  latter  communication  was  accompanied  by  a  memorandum  which  had  been 
submitted  to  the  directors  of  the  bank  on  the  day  previous,  and  which  disclosed  an 
estimated  impairment  of  $125,000,  after  reducing  all  assets  to  their  estimated  cash 
value. 

While  this  showed  an  impairment  of  capital  it  did  not  indicate  insolvency,  for  the 
reason  that  the  bank  would  still  have  assets  amounting  to  $375,000  after  having  pro- 
vided for  all  liabilities  other  than  the  capital  stock. 


'M 


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m 


;}J 


21G 


INVESTIGATION   OF    NATIONAL   BANKSi. 


INVESTIGATION   OP    NATIONAL   BANKS. 


217 


Upon  nveipt  off  hivse  two  roniinmiicHtions  I  .uidrossod  ;i  Irttcr  to  M 
date  of  Februarv  20tli,  jt  cj.py  oi'  whirh  is  jrjvon  1»p1(»w  : 


r.  Diow,  iiiirlei- 


"Trkasuhy  Depaktmknt, 
^'Office  of  tiik  Comptuoller  of  the  Currency, 

*^  Washington,  D.  C,  Februan/ 20,  7891. 
"My  Dear  Sir:  I  am  in  receipt  of  your  two  favors  of  the  16tb  and  17tli  inst.  and 
note  what  you  say  in  referente  to  No.  2291. 

"  The  statement  vou  sent  is  satisfactory  as  to  the  matter,  but  I  should  prefer  to  have 
bad  It  on  one  of  our  re<i«ilar  Idank  forms  as  puttin^r  it  i,,  a  more  valuable  shape.  I 
would  sujrgest  that  you  send  anotlier,  with  the  items  stated  upon  the  regular  blank 
used  tor  report,  an.l  take  up  each  separate  heading  and  give  an  estimate,  in  your 
judgment,  of  the  exact  value  of  the  resources  as  state«l.  Estimate  the  discount  iipon 
each  class  ol  investments.  ' 

"My  obje<rt  in  this  is,  if  possible,  to  arrive  at  i>reciselv  the  amount  of  deticieney 
necessary  to  be  made  up  by  assessment  ujMin  the  capital  stock. 

"I  should  be  glad  to  see  any  committee  of  the  board  which  may  visit  Washington 
Imt  can  conceive  of  no  better  way  to  i)ut  the  institution  in  tirst-class  shape  than  that 
suggested  by  me.  One  thing  is  certain,  that  some  action  is  imperatively  necessary 
and  the  sooner  it  is  taken  the  better  will  be  the  results.  I  shall,  of  course,  sustain 
and  encoiirage  the  board  in  their  endeavor  to  put  matters  in  a  satisfaitory  condition. 
"  Very  respectfully, 

"E.  S.  Lacey, 
''Mr.W.P.DREW,  -Comptroner. 

''National  Hank  Exaimnrr,  S9:19  Chrstunt  Street,  Philadelphia,  Pa." 

The  next  c^mimunication  referring  to  this  matter  seems  to  have  been  the  final  and 
tormal  report,  as  develo|)ed  by  theexamination.  which  had  been  in  luocess  continu- 
ously since  the  communication  of  January  24.  This  was  date<l  Februarv  2^  and 
reached  me  on  the  2d  of  March. 

Having  duly  considered  all  the  items  stated  in  this  report,  it  becanu-  sij.parent  that 
an  impairment ot  capital  existed  tc»  the  extent  <»f  at  lenst  $25(),(KM),  whereu,,on,  under 
date  ot  March  /th,  I  levied  an  assessment  of  $2r>0,(K)0  upon  tlie  Msso<iation,  to  make 
good  an  iinpairment  ot  capital  to  that  amount,  under  the  i)rovisioiis  of  section  5205 
of  the  Revised  statutes  ot  the  United  States,  which  reads  as  follows- 

Every  association  which  shall  have  failed  to  jiay  uj)  its  capital  stock,  as  required 
by  law,  and  every  association  whose  capital  stx.ck  shall  have  become  im])aired  by 
losses  or  otherwise,  shall,  within  three  months  after  receiving  notice  thereof  from  the 
Comptroller  of  the  Curreni-y,  pay  the  deficiency  in  the  capital  stock,  by  assessment 
upon  the  shareholdias  pro  rata  for  the  aiiiouut  of  rai>ital  stock  held  by  each;  and  the 
Irejisurer  ol  the  lluited  States  shall  withhohl  the  interest  upon  all  )m»u,Is  held  by  him 
in  trust  lor  any  such  association,  upon  notification  from  the  Comptroller  of  the  Cur- 
rency, until  otherwise  notified  l)y  him.  If  any  su,h  association  shall  fail  to  pay  up 
Its  capital  stock,  jind  .shall  refuse  to  go  into  liquidation,  as  provided  bylaw,  for  three 
months  alter  receiving  notice  from  the  Comptndler,  a  receiver  may  be  ai>i)ointed  to 
close  up  the  business  of  the  association,  according  to  the  provisions  of  section  fifty- 
two  hundred  and  thirty-four.  <^  x-  j 

The  comnnuiicatious  covering  this  assessment  read  as  follows: 

,  ^^  "TREAiskURY  Department, 

'Office  of  the  Comptroller  of  the  Currency, 

^'IVashington,  ]).  T'.,  A/arrh  7,  189 1. 
"Sir:  I  enclose  herewith  notice  of  an  assessment  of  $250,000,  levied  upon  youras- 
sociation  to  make  good  an  impairment  of  capital  for  that  amount  " 

•'Respectfully  yours, 

"E.  S.  Lacey, 
"Mr.G.VV.  Marsh,  '^Comptrolltr. 

''President  keystone  National  lianh;  Philadelphia,  Pa." 

'' Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

"  Washington,  D.  C,  March  7,  mi. 
canit ./ stocv'nf  T'''!'  ^''  /'"'  -^tisfaction  of  the  Com]>troller  of  the  Currency  that  the 
\XJu^I^fJ   I  Keystone  National   Hank  of  Phila<lel,>hia,  I'a.,  has  beccmie  im- 
pan eu  to  HU  extent  that  makes  necessary  an  assessment  of  two  hundred  and  fiftv 

rr^:^t';l!;j'r  '^T^c;, ""'  ^"■"■«""'"-'  "•■  -'"  =—'■•*.'.;;  tliiiixi^KiiiJ 

^^ Notice  18  hereby  giN  en  to  said  association,  under  the  provisions  of  section  5205  of 


the  Revised  Statutes  of  flu*  I'nitrd  States,  to  pay  the  siiid  deficiency  in  its  capital 
stock  by  assessmrnt  upon  its  slianboldeis  y/ro  rata  for  tin*  aniount  of  the  capital 
stock  held  by  each,  and  if  such  <b'licieiicy  shall  not  be  paid,  and  said  bank  shall 
refuse  to  go  into  li(|ni<lati<»n,  as  provided  l>y  Jaw,  for  three  months  after  this  notice 
shall  have  been  received  l)y  it,  a  receiver  will  be  appointed  to  close  up  the  business 
of  the  association,  according  to  the  provisions  of  section  5234  of  the  Revised  Statutes 
of  the  Fnited  States. 

"  In  testimony  whereof  I  have  hereunto  subscribed  my  name  and  caused  my  seal 
of  otiice  to  be  affixed  to  these  i)res«'nts,  at  the  Treasury  Department,  in  the  city  of 
Washington  and  District  of  Columbia,  this  seventh  day  of  March,  A.  D.  1891. 
*  *'E.  S.  Lacey, 

"Co7nptroller  of  the  Currency. 

"  To  the  Keystone  National  Bank, 

''Philadelphia,  Pa." 

This  assessment  was  levied  under  the  positive  promise  made  by  the  committee  con- 
sisting of  Messrs.  Haynes,  Hughey,  and  Marsh,  who  visited  me  personally  about  a 
day  or  two  after  the  receipt  of  the  formal  report,  that  the  amount  assessed  would  be 
paid  in  within  one  week  at  most,  and  that  those  advancing  the  funds  to  make  good 
the  impairment  of  capital  would  wait  for  reimbursement  until  the  full  pro  rata  sums 
had  been  collected  from  the  stockholders  of  the  bank. 

Not  having  been  advised  that  the  amount  levied  to  make  good  the  impainnent  had 
been  i>aid  in  according  to  agreement,  1  addressed  a  letter  to  Mr.  Drew  on  the  13th 
of  March,  a  copy  of  which  is  here  given: 

"  Treasury  Department, 
"Office  of  the  Comptroller  of  the  Currency, 

''Washington,  D.  C,  March  13,  1891. 

"  Sir  :  On  the  7th  instant  1  made  an  assessment  upon  the  Keystone  National  Bank  of 
Philadelphia  in  the  sum  of  $250,000,  to  make  good  an  impairment  of  their  capital 
stock. 

"  Will  you  please  to  advise  me  what  has  been  done  in  the  matter,  and  what  amount, 
if  any,  has  been  paid  in  to  make  good  the  deficiency? 
"(iive  me  all  the  facts  touching  upon  the  condition  and  prospects. 
"  Very  respectfully, 

"E.  S.  Lacey, 

^'  Comptroller , 
"  Mr.  W.  P.  Drew, 

'National  Bank  Examiner,  3939  Chestnut  Street,  Philadelphia,  Pa.^^ 


«'  A 


III  response  to  this  communication  the  following  letter  was  received  from  Bank 
Examiner  Drew: 

"Philadelphia,  March  14,  1891. 

"  Sir  :  In  answer  to  your  letter  of  the  13th  instant,  I  have  the  honor  to  report  that 
your  order  of  the  7th  for  an  assessment  of  $2.50,000  to  make  good  imi)airment  of  the 
capital  stock  of  the  Keystone  National  Bank  of  this  city  was  duly  received  by  the 
president,  and,  on  the  following  <lay  (the  8th)  was  laid  before  the  board  of  direct- 
ors, aiJd  its  piiiport  communicated  to  some  of  the  other  large  stockholders. 

"  Beyond  expressing  a  purpose  to  secure  the  required  amount  as  soon  as  practicable, 
the  board  has  not  as  yet  inaugurated  any  measures  to  obtain  it,  and  no  portion  has 
been  paid  in.  Although  the  old  board  of  eleven  members  was  re-elected  in  .January 
last,  several  of  them  have  failed  designedly  to  qualify,  or  have  tendered  their  resig- 
nation. Among  them,  D.  P.  S.  Nichols,  who  1  had  hoped  would  accept  for  the  time 
being,  at  least,  the  vice-presidency,  and  who  is  president  of  '  The  Central  Trust 
Co.,'  with  quarters  in  the  same  room  with  the  bank,  and  Charles  McFaddeii,  who 
rendered  much  assistance  to  the  bank  in  the  'run'  of  last  December,  are  the  most 
important.  Mr.  Nichols  owns  250  shares  of  stock  of  the  bank,  and  Mr.  McFadden 
700  shares.  While  they  decline  to  continue  as  directors,  they  express  full  concur- 
rence in  the  expedienc^y  of  the  assessnumt,  and  will  readily  pay  their  proportion 
when,  as  they  say,  other  large  stockholders  will  pay  theirs.  These  declinations 
further  to  serve  as  directors  on  their  part,  as  well  as  an  a])parent  disposition  of  the 
others  who  remain  on  the  board,  with  the  exception  of  Mr.  llaynes,  who  t)wns  991 
shares  of  the  stock  of  the  bank  to  put  the  entire  labor  and  responsibility  of  the 
resuscitation  of  the  bank  on  the  president,  render  united  and  zealous  co-operation 
on  their  part,  at  least  for  the  present,  out  of  the  question. 

"I  have  earnestly  endeavored  to  supply  the  vacancies  in  the  board  with  other  and 
<lesiralde  men,  J)ut,  under  the  circumstances,  few  such  are  available.  A  suggestion 
was  made  yesterday,  coming  from  three  stockholders — Mrs.  J.  C.  Lucas,  2, 1(X)  shares ; 
Mr.  Haynes,  991  shares  j  and  Mr.  Yard,  950  sh'sj  total  4^041  shares — to  transfer  dur- 


I 


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V\ 

if 
< 


■t  fi 


218 


INVESTIGATION   OF   NATIONAL   BANKS. 


iij««:  tlie  present  iiiontli,  without  consideration,  to  the  l.jink  all  these  shares,  which 
the  bank  could  use  lor  its  own  benefit,  representing  at  par  value  more  than  .t20(),(K)0. 
1  declined  to  entertain  the  proposition,  as  it  was  crudely  stated  and  as  (invself)  be- 
ing in  doubt  what  the  practical  effect  would  be  towards  replacing  the  deficiency  in 
cajntal.     The  matter  may  be  formulated  fully  and  submitted  to  you. 

''All  ofier  for  $350,000  for  the  principal  part  of  the  property  at  Sea  Girt  will,  I  un- 
derstand Irom  the  attorney  of  the  parties  offering,  be  soon  resubmitted,  and  I  have 
advised  acceptance  by  the  bank  ot  the  offer,  as  it  is  represented  to  be  a  cash  otter. 
\V  liat  will  eome  of  this  it  is  now  impossible  to  say. 

"It  is  still  confidently  expected  that  during  the  present  month  payment  of  $70,000 
will  be  made  to  the  bank  for  the  camp  ground  sold  at  Sea  Girt  to  the  State  of  New 
Jersey. 

''The  condition  of  the  bank  remains  practically  unchanged  since  my  last  report. 
Its  settlements  are  made  regularly  with  the  clearing  house,  often,  however,  by  drain- 
ing the  bank  of  nearly  all  of  its  available  funds  in  the  morning.  The  committee 
have  daily,  almost  hourly,  knowledge  of  the  condition  of  the  bank,  and  are  disposed, 
and  so  state,  to  tavor  the  l»ank  in  all  endeavors  ft»r  re<<»verv,  so  far  as  Is  consistent 
with  protection  to  the  exchanges. 

"Outside  of  the  account  of  the  city  treasurer,  who  has  all  along  endeavored  to 
assist  the  bank,  so  far  as  he  properly  could,  by  putting  in  every  day  checks,  &c.,  in 
1  le  bank  to  cover,  so  far  as  i)ossible,  his  drafts  the  next  day  through  other  banks  or 
the  Keystone  National  Bank,  the  individual  deposits  have  d'imiuished  since  Februarv 
15th  ult.  a  little  more  than  $200,000. 

w  *lu  ^'^^^^  auiount  could  be  collected  from  overdrafts  and  overdue  paper,  and  shortly 
It  the  directors  of  the  bank  would,  as  I  have  repeatedly  suggested,  take  the  work 
into  their  own  hands,  instead  of  ]dacing  it  on  the  president,  who  is  absorbed  in  other 
matters  necessarily  connected  with  the  conduct  of  the  bank  under  the  present  em- 
barrassing circumstances;  $100,000,  at  least,  could  be  collected  from  these  sources 
within  a  slKut  time.  I  have  thought  of  attending  to  these  matters  myself,  but  have 
retrained  Ironi  tear  of  exciting  apprehension  and  public  unfavorable  remark.  I  am 
at  the  bank  daily,  but  have  «Miiitted  lately  any  constant  stay  there  for  obvious 
reasons.  I  have  a  report  every  evening  from  the  general  bookkeei»er,  who  has  been 
my  ehiet  assistant.  There  does  not  ap]»ear  to  be  any  uneasiness  among  the  patrons 
ot  the  bank,  but  at  the  least  evidenee  of  a  threatened  ''r«in''  I  will  faithfully  obey 
your  directions  and  «  h.se  the  bank  and  take  charge  of  its  affairs. 

"1  ain  greatly  disappointed  in  finding  so  littleactive  support  given  by  the  directors 
in  the  ettort  to  rehabilitate  the  bank,  and,  at  times,  am  fearful  that  "the  continual 
strain  under  winch  the  president  unavoidably  labors  may  result  in  a  sudden  and 
h«»peh»ss  breaking  «h>wii  of  his  physical  energies.     He  seems  well,  however. 

*'  If  y«)n  can  uiaKe  such  orders  upon  the  directors  of  the  bank  as  will  compel  au 
eaiiiest  and  eHeclive  co-operation  cm  their  i»art,  I  shall  be  glad  to  enforce  them, 
l-ilty  shares  ol  the  stock  of  the  bank  were  s(dd  last  week  for  $.30  per  share   and 

since  that  ti some  otlers  to  purchase  the  controlling  interest  in  the   bank  h'lve 

been  made  by  strong  parlies,  but  as  the  stock  is  under  assessment  such  otters  can  not 
be  considered  without  working  disclosure  of  the  assessment.  Possibly  soinethiuir 
may  come  ot  these  ])ropositions  eventually. 

"I  will  writ*-  y(m  often,  reporting  progress,  when  any  is  made,  or  any  changes  af- 
fecting the  geiM'ial  condition  of  the  bank.  ^ 

"The  haste  with  which  I  have  been  obliged  to  write,  in  order  to  mail  this  letter  so 
you  can  receive  it  on  Monday,  must  be  my  excuse  for  the  appearance  of  this  letter 
"  Very  res]»ectfully, 

"W.  P.  Drkw, 

a  ij        T.-.    CI    T  -  "  ^*'^'  ^""^  Examiner, 

"  Hon.  K.  S.  Lacky, 

''  f'omptroller  of  the  finrennf,  Waghingion,  1).  C." 

This  communication  reached  me  on  the  16th,  and  three  days  later  I  telesfranhed 
Examiner  Drew  to  close  the  bank. 

On  the  17th  of  March  I  made  the  following  reply  to  his  letter: 

"  Treasi  KY  Department, 

*H)FFICK  OF  THE   COMPTROLLER  OF  THE   C(  RRENCY, 

ttxM     Air  r.   ^^  '  "  ^yunhinyfoH,  IJ.  C,  March  17,  1891. 

"  Mr.  William  P.  Drew,  ^      7  f  ,         . 

*' Examiner  of  XadotHtl  Ban k 8, 

''S939' Chestnut  St.,  Philadelphia,  Pa.: 

"My  Dear  Sir:  I  am  in  receipt  of  your  favor  of  the  14th  instant,  which  I  have 
read  very  carelully. 

"The  condition  V No.  2291  is  such  that  1  must  insist  upon  the  prompt  payment  of 
the  larger  part  of  the  amount  of  their  assessment  within  the  next  five  days/or  eke  I 


INVESTIGATION    OF    NATIONAL   BANKS. 


219 


shall  feel  «allcd  upon  to  take  peremptory  action  towards  bringing  the  matter  to  a 
determination  one  way  or  tht^  other.  ,      .,  i- 

"I  do  not  feel  at  lil)erty  to  allow  matters  to  proceed  any  further  under  the  <'<»iiili- 
tions  which  now  exist,  and  you  will  please  so  inform  the  parties  in  interest,  without 

delay,  and  advise  me  of  the  reply.  ,..  ,    ,         ,  ,,      ^c  r^    i/i        i 

"I  am  verynnich  surprised  to  learn  that  Mr.  Nichols  and  Mr.  Mel adden  have 
resi««'ned  as  directors  «»f  the  bank,  as  I  was  led  to  understand  while  I  was  in  Phila- 
deliriiiathat  they  were  to  bo  the  principal  agents  in  bringing  the  bank  back  again 
into  line.  I  su])posed,  from  assurances  given  me  by  Mr.  Marsh,  Mr.  Hughey,  and  Mr. 
naynes,*that  the  am(mut  of  the  assessment  would  be  paid  into  the  bank  within  a 
very  few  days  from  the  time  they  received  my  communication. 

"'The  dirc'ctors  of  the  bank  should  understand  that  their  failure  to  qualify  after 
their  last  election,  or  their  resignation  at  this  time,  will  not  in  any  manner  protect 
them  from   their  responsibility   as   directors   during   the  period    when   the   losses 

occurred  to  the  bank.  ,   ,    .    .    ^        ^^   ^i  n        i 

"It  seems  to  me  that  if  they  thoroughly  understood  their  interests  they  would  real- 
ize that  promi)tness  and  courage  would  be  in  the  end  the  w  isest  and  cheapest  way  in 
which  they  can  escape  from  the  present  dilemma. 

"  ^*'y  >«»P^<=t«"lly.  .<  E.  s.  LACF.V, 

"  Comptroller." 

The  bank  was  closed  on  the  night  of  the  19th  of  March,  and  did  not  reopen  for 
business.  The  order  to  close  it  was  given,  after  an  interview  with  Mr.  >Iarsh  at  niy 
house,  on  the  evening  of  the  19tli  of  March  last.  He  at  that  time  iulormed  ine  ot  the 
fact  that  certificates  representing  about  2,500  shares  of  stock  in  the  Keystone  National 
Hank  had  been  improperly  delivered  to  Mr.  John  VVanamaker  during  the  litetime 
of  Mr.  John  C.  Lucas,  and  that  negotiations  for  the  surrender  and  cancellation  of  the 
same  had  failed,  for  the  reason  that  Mr.  Wanamaker  claimed  to  hold  them  as  a  pledge 
for  the  i»ayment  of  a  certain  sum  of  money  due  him  from  the  estate  ot  John  C.  Lucas, 
and  he  declined  to  surrender  the  stock  until  the  debt  was  paid. 

Upon  learning  these  facts  from  Mr.  Marsh  I  immediately  determined  to  close  the 
bank,  but  did  not  so  inform  Marsh.  1  asked  him  to  go  to  the  rttsidence  of  Mr.  W  ana- 
maker  and  tell  him  that  1  luul  been  informed  as  to  the  existence  of  this  stock,  and 
t  hen  to  return  to  my  house.  My  purpose  in  this  was  to  secure  time  enough  to  inlorm 
th«'.  Department  of  Justi»e,  and  give  an  opimrtunity  for  Mr.  Marsh's  arrest  before  he 
left  the  city,  in  case  that  course  was  deemed  advisable. 

As  Sixm  as  Mr.  Marsh  left  my  house  I  called  at  the  residence  of  the  Attorney-Geu- 
eral,  but  learned  that  he  was  not  in  the  city.  I  then  laid  the  facts  before  the  Solic- 
itor-General and  discussed  with  him  the  entire  situation.  The  Solicitor-!  Jeneral  did 
not  deem  it  necessary  to  arrest  Mr.  Marsh  at  that  time,  believing  that  a  man  who  had 
voluntarily  confessed  as  to  the  Lucas  defalcation  and  made  a  jourm\y  from  Philadel- 
phia to  Washingtou  to  inform  the  Comptroller  as  to  these  irregular  issues  of  certifi- 
cates of  stock  was  not  likely  to  fiy  for  the  puriK)se  of  avoiding  the  arrest  which  he 

had  thus  invited.  o  i  ••        /.  it*-        i 

On  returning  to  my  house  from  this  conference  with  the  Solicitor-lTeneral  1  tound 
Mr.  Marsh  awaiting  me,  and  soon  after  he  left  for  Philadeljihia.  Immediately  after 
the  departure  of  Mr.  Marsh  1  visite<l  the  telegraph  office  and  sent  the  following  ties- 
patch  to  Mr.  Drew,  at  his  residence,  3939  Chestnut  st.,  Philudelpiiia : 

"Visit  Keystone  Bank  nine  o'clock  t;0-morrow  morning  and  await  telegram  Irom 

me." 
This  was  followed  early  on  the  morning  of  the  20th  of  March  by  a  telegram  n-ad- 

iiig  as  follows: 

"Washington,  D.  C,  March  20, 1S91. 

"ToW.  P.  Drew, 

National  Bank  Examiner,  care  Keystone  National  Bank,  Philadelphia,  Pa.: 

"You  will  close  number  twenty-two  hundred  and  ninety-one  immediately  and  take 

charge  of  its  assets.     Answer  quick.  ,    ^   , 

^  "E.  S.  Lacey, 

"Comptroller." 

(The  charter  number  of  the  Keystone  National  Bank  is  2291.) 

This  brings  the  narrative  up  to  the  closing  of  the  bank,  since  w huh  time  all  its 
assets  have  been  in  charge  of  the  officers  of  the  General  Government  and  properly 
kept  and  cared  for,  as  completely  so  while  under  the  charge  of  the  bank  examiner 
as  when  in  the  custody  of  the  receiver.  .     . 

Complaint  has  bc^n  made  because  of  delay  in  appointing  a  receiver.  Ihis  is 
utterly  without  force,  as  no  interest  whatever  has  thereby  suttered,  and  for  the 


.^. 


«l 


.^'1 


:jt| 


220 


INVPftTTGATION   OP   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


221 


Im  1  iH-r  reaHon  Hint  the  delay  was  not  nnnsu;.l.     Tl.e  hank  was  closed  on  the  evenin- 
.»t  >  jiich  nUh,  ana  a  rereiver  was  ap|M.int«Ml  on  the  mh  of  May. 

I  Ins  bank  was  thorolbie  in  thr  l.antis  of  the  examiner  tifty  days  after  beinff  closed 
<lurin«  which  time  he  was  in  erteet  an  acting  receiver.     Diirinj;  th«^  oarlie    wee  Is  of 
a  trust  a.,  exanuner   is  ca]>able   of  ^nvin^^  all  necessary  attention  to  its     nUna  v 
attairs     Certamly  all  the  assets  were  carefully  ffuardedf  maturinir  paper  colle.  ted 
acconnts  written  np  and  a<ijnsted,  and  all  the  cnrrent  matters  propeVlv  attended  to 
i  he  tact  that  an  exammer  can  thus  temporarily  take  charge  of  a  closVd  bank  is  of 
peat  advantage,  as  it  enables  the  Comptroller  to  give  ]>roper  encouracreimyit  to  all 
bona  tide  attempts  to  reopen  failed  banks  ])y  the  ccmtribution  of  new  "iT^i^t"^^^ 
the  enconragement  thus  afforded  the  Comptroller  has  since  .lannary  Ist,  ast    enabled 
i<mr  failed  banks  to  resume  active  business  in  a  solvent  c(,ndition^inother  has  been 
permitted  to  go  into  voluntary  liquidation,  and  two  more  will  reopen    br  busint^s 
dnrmg  the  present  month.     And  again,  this  temporary  employment  of  an  examiner 
enables  the  Comptroller  to  take  the  time  net-essary  to  a  proper  selection  of^ivcSver 
1  his  was  especially  necessary  in  the  case  under  consi<lcration,  where  hasty  action 
might  have  resulted  m  an  improper  app<untment  and  grave  complications      The 
averaov  time  between  the  closing  of  a  bank  and  the  Hnal  appointme^it  of  a  receiver 
111  the  last  twenty-one  cases  is  lound  to  be  thirty-two  days.     And  this  <leliberition 
not  only  tends  to  facilitate  the  reopening  of  failed  associations,  but  it  also  result^  in 
a   wiser  choice  ot  receivers,  and  hence  greater  economy  and  efficiency    with  its 
resulting  benetits  to  unfortunate  creditors  ^  emuencj,  AMtn  its 

In  the  case  of  the  Keystone  National  Bank  there  were  numerous  annlicants  ind  all 
rom  the  city  of  Philadelphia.  Presumably  all  were  excellent  meirbut'?he  Comp! 
tiolh^r  was  bound  to  investigate  with  great  care,  in  cuder  that  he  might  be  c-^rt"  i 
that  the  person  chosen  slumld  not  be  a  debtor,  creditor,  or  stockholdeT  of  the  bank 
nor  related  to  aiiy  such  by  ties  of  relationship,  or  by  such  associations  of  a  social 
religious,  or  political  character  as  wouhl  embarrass  him  in  the  vigorous  and  imparl 
tial  administration  ol  his  trust.  It  resulted  in  the  selection  of  a  noniesident.  who 
cominended^'''''     '^'  '"'  applicant,  and,  I  believe,  the  selection  has  been  unanimously 

The  records  of  this  Bureau  show  that  during  the  period  intervening  between  the 
closing  of  the  bank  and  the  appcnntment  of  a  receiver  there  was  an  unintermittinc. 
effort  in  progress  among  the  directors,  stockholders,  and  creditors  of  the  closed  banS 
to  procure  the  necessary  contributions  to  its  capital,  in  order  that  it  might  reopen 
lor  business.  1  his  reopening  was  deemed  practicable  by  those  who  ought  to  hSve 
known  best  about  the  matter,  and  the  Comptroller  would  have  been  recFeant  to  his 
duty  if  he  had  not  given  every  encouragement  to  eftorts  which  would,  if  su<-cessful' 
have  made  immediately  available  the  balances  due  its  1,200  depositors  and  the  We 
sums  due  the  city  treasurer  i»ige 

It  i^  easy  to  say  now  that  rehabilitation  was  im])ossible,  but  the  C<unptioller  could 
not  then  act  upon  the  facts  which  it  has  taken  three  months  of  vigoiois  and  persis- 
tent inyestigation  to  develop  The  eflforts  at  reorganization  were  headed  bv  many 
men  ot  character  and  wealth,  and  at  dirterent  times  Messrs.  Wagner,  Fi^ld  and 
Davis  were  considering  the  acceptance  of  the  presidency.  It  was  renrescnt.Vl  to 
me  that  throe  humlied  thousand  dollars  of  new  capital  had  been  subscribed  and 
that  another  one  hundred  thousand  could  be  secured  as  soon  as  they  could  en«^i«re  a 
projier  j»ersou  as  manager.  '"  ^ 

The  depositi.rs  had  fnMiuent   meetings  and  various  c<miniittees  were  aj)pointed 
and  It  was  reinesented  that  all  were  unanimous  in  favoring  a  delay  in  the  inuoint' 
ment  ot  a  re»*eiyer  until  the  etlorts  in  progress  should  either  succeed  or  tinallv  fail 
Uuring  the  entire  period  no  party  interested  ever  made  any   complaint  about  the 
delay  in  the  appointment  of  a  receiver. 

Only  a  day  or  two  before  I  had  determeneil  ui.onthe  appointment  of  Mr  Yaidlev  i 
committee  of  some  seve^n  prominent  bjisiness  men  and  lawyers,  reiuvscntin.v  various 
interests  appeared  before  me  to  protest  again.t  the  appointment  of  a  "receiver 
^^,3.  *"  were  Mess  Uavis,  Bowman,  Cray,  Baidsley,  an<l  others  wh.n^e  names 
I  cannot  now  recall.  All  favored  delay  except  Mr.  Gray,  who  created  great  surprise 
and  consternation  by  favoring  a  prompt  ai)pointment 

The  appointuient  of  Mr.  Yardley  folio  wiil  iihnost  immediately.  'J'he  Comptroller 
has  been  criticised  for  three  things:  "tpnunci 

First.  For  allowing  Mr.  Marsh  to  ren.aiii  in  office  after  his  confession,  and  not 
causing  his  arrest.  ' 

Second.   For  delay  in  closing  the  bank. 

Third.  For  delay  in  ai)pointiiig  a  receiver. 

As  to  the  first  inatter  complained  of  I  have  this  to  say,  that  I  am  nowhere  charged 
with  any  responsibility  in  (;onnectiou  with  criminal  prosecutions,  and  a  bank  exam- 
iner IS  held  to  have  done  his  duty  as  soon  as  he  lays  before  the  U.  S.  attoiuev  any 
facts  involving  crime  which  may  come  to  his  knowledge  in  the  discharge  of  his 
duties.    L  very  bank  examiner  is  instructed  and  expected  to  do  this,  and  I  could  not 


avoid  the  conclusion  that  Mr.  Drew  had  discharged  this  duty  after  reading  his  letter 
Tf  Janurry  24th,  in  which  he  says  that  he  was  assisted  in  sex^uring  a  settlement  with 
?heLu"as  estate  -by  the  Hon.  John  K.  Read,  U.  S.  district  attorney,  whom  he  h^ 
employed  to  aid  him  in  the  transact  ion."  I  had  the  right  to  suppose  that  froin  that 
S  on  to  the  linal  arrest  that  the  U.  S.  district  attorney  J^asully  informed  as  to 
Marsh's  ccmduct.  In  this  letter,  and  in  the  interview  which  followed  on  the  27th  ot 
Januaiv  I  was  le<i  to  believe  that  not  only  the  IJ.  S.  district  attorney,  but  also  the 
clearriff  house  eomn.ittee  were  conversant  with  all  the  facts,  and  that  these  gentle- 
men t.^-e  her  with  the  directors  of  the  ]>ank  (who  were  really  the  responsible  parties) 
and  th^examiner,  were  all  of  the  opinion  that  Mr.  Marsh  had  ^nade  a  voluntary 
confVssio^artO  the  funds  abstracte<l  'by  Lucas;  that  he  had  ->*,  f  «*;*-^.^?^„*  ^ .^^ 
falcation  in  any  way;  that  he  was  g^""'"<^lv  repentant;  that  he  ^ 
living  who  could  substantiate  any  claim  for  the  lost  funds,  and  that  his  service* 
were^ilmost  indispensable  to  a  complete  sdlution  of  the  difficulties  which  surrounded 
the  hank.  During  the  time  he  remained  president  the.  examiner  was  daily  at  the 
lank,  hfs  assistant  was  acting  as  chief  bookkeeper,  one  of  the '"- V'd^;n  ll^k  HoseTv 
had  an  office  in  the  same  room,  and  others  of  the  bc»ard  were  expected  to  look  cU»sely 

after  the  management. 

Second.  For  delay  in  closing  the  bank.  ,        x  •  „.i 

In  regard  to  this  matter  I  desire  to  say  that  the  Comptroller  can  only  act  m  accord- 
ance with  law.  and  so  far  as  this  case  is  conceded  he  is  governed  by  the  provisions 
of  see.  1  of  the  act  of  .June  30.  1876,  which  reads  as  follows: 

*'  That  whenever  any  national  banking  association  shall  be  dissolved  and  its  rights, 
nrivile'rcs,  and  franchises  declared  forfeited  as  inescribed  in  section  hfty-two  him- 
dre<l  and  thirty-nine  of  the  Revised  Statutes  of  the  United  States,  or  whenever  any 
creditor  of  any  national  banking  association  shall  have  obtained  a  judgment  against 
it  in  any  court  of  record,  and  made  application,  accompanied  by  a  certihcate  from 
the  clerk  of  the  court  stating  thatsuch  judg-menthas  been  rendered  and  has  remained 
unpaid  for  the  space  of  thirty  days,  ..r  whenever  the  Comptroller  shall  become  satis- 
fied of  the  insolvency  of  the  national  banking  association,  he  may,  after  due  examma^- 
tion  of  its  affairs,  in  either  case  appoint  a  receiver  who  shall  proceed  to  close  up  such 
association,  and  enforce  the  personal  liability  of  the  shareholders,  as  provided  m 
section  fifty-two  hundred  and  thirty-four  of  said  statutes. 

It  will  be  observed  that  the  Comptroller  is  not  commanded  to  appoint  a  receiver 
in  any  of  the  cases  mentioned,  but  he  may  do  so  under  certain  conditions.  As  the 
Keystone  National  Bank  had  never  had  its  franchise  declared  forfeited,  nor  had  had 
iudgment  rendered  against  it,  nor  committed  any  other  act  of  insolvency,  the  Comp- 
troller could  not  proceed  under  this  section  unless  he  became  satisfied  ol  its  msol- 

^^Astiie  report  of  Examiner  Drew,  under  date  of  January  24,  shows  that^the  capital 
of  the  bank  was  not  in  any  degree  impaired,  the  Comptroller  certainly  had  no  law- 
ful rijiht  to  close  it  at  that  time.  .  1.1,-. 

\8  the  statement  of  February  16th,  forwarded  by  Examiner  Drew,  exhibits  an  im- 
pairment of  only  $125,466.11,  leaving  an  excess  of  $374,533  in  assets,  after  all  liabili- 
ties were  provided  for,  it  certainly  would  not  have  been  .lustihable  for  the  Comptroller 
to  certify  to  its  insolvency  and  close  it  up  when  no  act  of  insolvency  had  l>een  com- 
mitted. '  This  brings  us  down  to  the  report  of  February  28th,  which  reached  the 
Comptroller  on  Monday,  March  2,  1891.  ^r.  x.  ^v,     i  ^ 

The  bank  was  closed  on  the  evening  of  the  19th  of  March,  so  that  the  largest 
possible  chday  of  which  complaint  can  be  made  by  any  right  minded  person  convers- 
ant with  the  law  and  facts,  is  reduced  to  sixteen  full  days,  or  fourteen  business  days, 
exclusive  of  Sundays.  The  entire  force  of  the  criticism  is  thus  narrowed  down  to 
this  that  the  Comptroller  in  the  conscientious  exercise  of  the  discretion  imposed 
upon  him  by  the  statute  decided  that  it  was,  ajl  things  considered,  wisest  and  best 
to  impose  the  lighter  of  the  two  penalties  which  the  law  provnled  and  give  the 
bank  fourteen  days  in  which  to  pay  an  assessment  under  section  520o,  rather  than 
to  immediately  order  it  closed,  with  all  that  such  a  disaster  means  to  the  numerous 
worthy  people  whose  funds  are  thus  rendered  of  no  avail.    ^.  .  ,    ^  ,. 

Discretion  is  given  to  an  executive  officer  as  it  is  to  a  judicial  officer,  and  he  can 
only  be  censured  when  he  fails  to  faithfully  and  conscientiously  weigh  the  facts  pre- 
sented and  in  good  faith  do  that  which,  all  things  considered,  will  in  his  opinion, 
en<l  in  promoting  the  widfjire  of  those  whose  interests  are  involved.  The  C  omptroller 
is  conscious  of  having  dime  precisely  this  in  the  case  under  consideration  What 
are  the  facts?  Tlu-  entire  country  was  in  a  nervous  condition  financially.  1  Ins  was 
especially  true  of  Philadclidiia„wlierc  at  least  four  recent  failures  of  banking  lusti- 
tuti<ms  bad  unsettled  c.mtidcii.c  which  was  slowly  returning.  Failures  arc  ott^eii 
contagious,  an.i  the  jdacing  ot  this  bank  in  a  safe  situation  would  have  gone  far 
towards  ensuring  the  safety  ot  idhcis.  It  w«nild  have  saved  the  uioney  and  the 
credit  of  the  numerous  depositors.  It  would  have  saved  the  city  of  Philadelphia 
and  the  State  of  Pennsylvania  from  serious  losses.     It  would  have  saved  the  sureties 


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INVESTIGATION   OF   NATIONAL    BANKS. 


INVESTIGATION    OF   NATIONAL    BANKS. 


223 


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of  the  city  treasurer  from  the  penalties  of  his  official  bond.  It  would  have  in  many 
ways  conduced  to  promote  the  welfare  of  the  business  community  in  which  it  was 
?or«  Th.  J^t""?  '^*''"''  several  men  of  reputedly  Jar-e  wealth  on  tie  board  of  dired- 
tors.  J  hese  had  assured  the  Comptroller  that  the  sum  of  $250,000  would  be  nromntlv 
paid  m  as  soon  as  an  assessment  was  made.     This  assurance  was  repeated  to  him 

ihould  be^'appiied!  ^""^  "^"^"^  "P"""  *^  ^^""'^^  ^^''""^  "^"  *^^  *'^*^  penalties 

f«nnrf  wS'?i  'V'''''*?  '"  '^f/^reed  upon  would  prevent  a  disastrous  and  scandalous 
of  SeVi^    to  mLl'v  ^         alternative  could  bring  nothing  but  serious  loss  and  much 

u+lVi^'i  1'""^^*  exercise  of  his  discretion  the  Comptroller  determined  to  give  the 
stockholders  one  last  chance  and  imposed  an  assessment  of  $250,000.    Failine  to  se- 
cure Its  payment  after  fourteen  business  days,  he  closed  the  association.       ^ 
iJiird.  *or  delay  in  appointing  a  receiver. 

di™s\ed  ahJf^y"  ''^'^^''^  ^'"^^^  importance  in  any  event,  and  has  been  pretty  fully 

mediately  b^ec'-msc^-  ^'''"^^^'^^''  *^^*  *^®  appointment  of  a  receiver  was  not  madeim- 

the^bau^k^^^  *^^  ^"^^^  ""^  *^®  Comptroller  to  facilitate  a  resumption  of  business  by 

x.iVohih^TJ'^^''^^^'^^'  ^«°??de"?g  all  tl^e  business  and  municipal  ramifications 
which  tlie  failure  involved,  that  plenty  of  time  be  given  for  developments,  in  order 
to  avoid  the  appointment  of  some  improper  and  interested  person.  ' 

damlr?,?  trf^r^.f  "Z^*''''  ^Y''^.  ""V  creditor,  debtor,  or  stockholder  has  been 
rtamaged  to  the  extent  oi  one  dollar  by  reason  of  said  delay. 

In  closing  this  branch  of  tlie  subject,  in  justice  to  one  whose  name  has  been 
brought  into  the  discussion  of  this  failure  I  desire  to  say  that  Hon.  So^n  Wanamakei 
of  f b!T?  ?"'''*^-^'  or  indirectly  suggested  or  solicited  oiie  day's  delay  in  the  clisin^ 
of  the  bank,  nor  in  the  appointuient  of  a  receiver,  except  as  appears  by  the  t^Wram 
hereinafter  quoted.     In  fact  I  have  met  him  but  once  during  the  present  year^and 

Hon  Tt"LTtTpr  't  '''a  ^.^^'  "V'*^^^^'  ""'  '^'"^  suggestion^and  i^n  the  prSce  of 
Hon  A.  B  Nettleton,  then  Acting  Secretary  of  the  Treasury.  This  interview  was 
the  day  after  the  Keystone  Hank  was  closed  and  the  failure  was  fully  discussed. 

tbn/\f^'h!n"  •''i'?^'*"'''!  «**^*'  iuformation  I  received  from  Mr.  Marsh,  and  said 
that  he  held  us  a  pledge  certihcjites  representing  about  2,500  shares  of  stock  in  the 
Keystone  Bank  and  that  he  had  declined  to  surrender  them  unless  the  Lucas  estate 
wo^.ld  ],ay  hun  the  aniount  his  due.  I  urged  him  to  use  his  intiuence  in  aM  of  the 
ertorts  being  made  to  reopen  the  bank.  He  pnunised  to  look  into  the  matter  t  e 
same  night  on  his  return  to  Philadelphia,  and  1  telegraphed  Mr.  Drew  to  call  u mm 
h.m  with  a  statement  of  the  assets  and  liabilities  of  tlie  bank,  and  to  Ikcilitate 

I  failed,  however,  in  my  attempt  to  enlist  him  in  the  enterprise,  and  sH  ended  a 
iX>mmunication  In'tween  us  on  any  subject  connected  with  the  bank's  atiairrexcei  t- 
ing  the  receipt  of  the  following  telegrams :  <*"«"»,  ei^cepi 

[Telegram  from  P.  O.  Dept.] 

"TKKAsrRY  Department, 
" To  Hod.  Edwakd  8.  Lackv,  •         "  "«''""»"'"'  ^-  <^v  ^j".  ^nd,  mi. 

"  Comptroller: 

"  Ml-.  Marsh,  of  the  Keystone  Bank,  came  down  last  night  to  say  that  it  was  reported 
you  intend  to  appoint  a  receiver  of  the  Keystone  Bank  unless  somethi,,^  more  dofi 
nite  was  done  to-day.  I  believe  nothing  would  suffer  fnnn  giving  them"tNZity-four 
hours  longer,  at  the  end  of  which  they  may  put  on  paper  something  ZrlaTnuifVu, 
he  presented  to  you.  From  what  he  says  they  are  getting  .-.long  prettTwe  1  in  secii^ 
ing  subscriptions  to  the  now  stock.  I  would  recommeml  appointment  of  rece  ver  be 
deterred,  say,  one  day,  until  he  has  an  opportunity  to  state  iomething  more  definite! 

"John  Wanamaker." 

(Telegram  from  White  House.] 

Treasury  Department, 
"To  Mr.  Lacey;  ''Washington,  D.  C,  ApH  8, 1891. 

y  Marsh  telegraphs  me  to-day  to  inform  you  that  the  parties  negotiating  for  control 
of  bank  are  to  give  answer  to  him  on  Friday  next.  ^^'miroi 

"Wanamaker," 


it> 


I  desire  to  make  this  disclaimer  as  comprehensive  and  explicit  as  jxissible. 

In  concluding  this  statement  I  deem  it  my  duty  to  say  that,  in  my  opinion,  the 
several  reports  made  by  the  bank  examiner  did  not  reflect  the  true  condition  ot  the 
bank  under  consideration.  The  degree  of  blame,  if  any,  which  properly  attaches 
to  Mr.  Drew,  is  yet  to  be  ascertained.  He  is  entitled,  by  reason  ol  his  long  and 
hitherto  acceptable  service,  to  an  impartial  investigation  and  a  fair  hearing.  He 
has  recently  been  so  fully  employed,  by  reason  of  the  failure  of  the  Keystone  and 
Spriii"-  Garden  National  banks,  that  it  has  as  yet  been  found  impracticable  to  give 
the  matter  the  consideration  its  importance  demands.  In  the  meantime,  however, 
he  has  been  directed  to  suspend  examinations  until  the  facts  are  submitted  and  a 

conclusion  reached.  ,  ,       .  r.  ti       i  i  x 

In  conclusion  I  beg  leave  to  say  that  I  have  endeavored  to  give  a  full  and  complete 
narrative  of  the  action  taken  by  this  Bureau  during  the  entire  period  extending  from 
the  first  day  that  the  Lucas  defalcation  was  brought  to  my  attention,  up  to  and  in- 
cluding the  appointment  of  Receiver  YarcUey.  If  any  matter  has  been  omitted,  or 
any  point  not  made  clear,  it  will  be  fully  explained  as  soon  as  indicated. 

inclosed,  herewith,  I  have  the  honor  to  hand  you  copies  of  the  three  reports  made 
by  the  examiner  on  the  condit-on  of  the  Keystone  National  Bank. 

Respectfully  yours,  ^    ^    ^^^^^^ 

Comptroller, 


Philadelphia,  June  11, 1891. 

Sir:  A  telegram  from  Washington  this  afternoon  to  the  newspaper  headed  ^'Drew 
Suspended,"  created  much  surprise,  and  has  led  to  very  unfavorable  comment  re- 
gardintr  myself.  I  enclose  extract  from  "  The  Telegraph."  It  was  indeed  a  great  sur- 
prise to  me,  for  I  had  not  interpreted  the  suggestions  in  a  letter  from  you  a  few  days 
since,  that  I  should  not  resume  my  regular  work  until  I  had  a  c<mference  with  ycm 
upon  the  situation  here,  and  I  have  held  myself  in  daily  expectation  of  being  sum- 
moned by  you  for  the  purpose  of  the  conference. 

An  investigation  into  my  conduct  with  reference  to  the  Keystone  ^at.  Bank 
I  am  eager  to  have,  provided,  in  your  opinion,  there  are  sufficient  doubts  m  the  case, 
so  far  as  you  are  concerned,  to  warriuit  that  course,  and  if  the  feeling  abroad  in  th«5 
community  are  fostered  by  the  press,  involving  great  injustice  to  me  can  be  set  right 
by  such  investigation.  I  "have  nothing  to  fear  as  to  final  result  of  any  candid  and  in- 
telligent inquiry  into  my  course,  but  I  may  be  permitted  to  say,  that  unless  there 
are  some  charges  affeijtin'g  my  conduct,  I  do  not  seethe  justice  in  not  aUowing  me  to 
continue  my  work,  at  least  in  <ert:uu  banks  not  in  anyway  implicated  in  any  transac- 
tion with  the  city  treasurer,  pending  the  investigation.  Still  I  am  in  your  hands, 
and  am  confident  that  von  will  not  permit  any  undeserved  injury  to  come  to  me. 
You  must  know  that  I  aiii  exceedingly  troubled,  as  well  as  my  family,  under  the  un- 
just imputations  now  set  afloat.  .      ,  .    1-  X        •        J.  J. 

Trusting  that  you  will  appreciate  my  position  and  feelings  in  this  distressing  state 

of  aflfairs,  I  am. 

Very  respectfully,  w.  P.  Drew, 

Nat.  Bank  Examiner, 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency ^  Washington,  D.  C. 


DREW  SUSPElffDED, 

Pending  an  investigation  into  his  administration  as  bant  examiner  in  this  city. 

The  following  despatch  has  been  received  from  Washington :— Washington,  June 
11.— Mr.  Lacey,  Comptroller  of  the  Currency,  has  completed  the  preparation  of  his 
report  in  regard  to  the  Keystone  National  Bank,  of  Philadelphia,  and  will  submit  it 
to  the  President  this  afternoon  or  to-morrow.  It  is  a  very  long  and  exhaustive  docu- 
ment, and  gives  a  detailed  and  circumstantial  account  of  the  Comptroller's  action  in 
the  nmtter,  together  with  the  reports  received  from  the  examiner  in  charge,  on  which 
such  action  was  mainly  based. 

The  President  will  transmit  it  to  the  mayor  of  Philadelphia  as  a  full  and  complete 
response  to  the  resolutions  of  the  comnum  council.  Cvunptroller  Lacey  will  not 
appear  before  the  local  committee  conducting  the  present  investigaticm  in  Philadel- 
phia, the  authorities  here  having  concluded  that  it  would  be  establishing  a  bad  pre- 
cedent to  allow  anybody  other  than  Congress  to  investigate  Federal  officials  and  to 


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224 


INVESTIGATION    OF    NATIQNAL    BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


225 


have  access  to  the  orticial  nHiords  «>f  the  Government.  It  is  expected  that  the 
Comptroller  s  report  will  supply  all  information  in  that  officer's  possession  re<iuired 
by  the  coninuttee  «()iidu(tiii«f  th«^  nuinicipal  investifjation. 

An  important  fact  in  connection  with  the  investijjfution  that  does  not  appear  t^»  be 
generally  known  is  that  liank  Examiner  I>rew  has  been  sasi)end«'d  from  dntv  i)endin«r 
the  resnlt  ot  an  investi<,'ation  into  his  a,<lministration,  and  has  been  instructed  to 
examine  no  more  banks  in  his  district  for  the  present. 

THE   NKWS   IN   THK   CITY. 

The  annonncemenf.  of  Mr.  Drew's  suspension  was  not  exactly  a  surprise  to  the 
authorities  and  others  who  have  been  interested  in  the  Kevstone  and  Surinir  Garden 
l)ank  complications.  ' 

This  was  not  due  to  any  particnlar  knowledge  affecting  Mr.  Drew's  inteority  l>ut 
grows  out  of  the  open  disinite  between  Mr.  Drew  and  Comptroller  Lacev  respecting 
the  lormers  reports  to  the  Treasury  on  the  condition  of  the  Keystone  Bank  before 
it  was  closed 

District  Attorney  Read  heard  ot  the  suspension  while  trying  the  hat  trimmino's 
case  in  the  I;nite,d  States  district  court.     He  said  he  was  very  sorry  for  Mr   Drew 
but  declined  to  be  interviewed  on  the  sul>ject.  '  *  ' 

Receiver  Yardley  knew  nothing  about  the  suspension,  but  said  that  such  a  move 
was  quite  natural  in  a  case  where  there  was  such  a  divergence  of  views  between  an 
othcer  of  the  Government  and  his  subordinate. 

MR.   DKKW\s  EXPLANAHON. 

Late  this  afternoon  on  being  shown  the  despatch  from  Washington  announcing 
his  suspension,  Bank  Examiner  Drew  stated  that  some  days  ago  the  Comptroller 
wrote  him  desiring  a coufereme  on  the  situation  in  F'hiladeljihia,  and  sua-«restino^tlie 
propriety  of  his  not  resuming  his  regular  work  until  sm^h  conference  was  had  fand 
that  yesterday  he  re('eived  a  telegram  from  the  Comptroller  stating  that  he  would  fix 
an  early  time  for  the  conference.  He  presumes  that  this  is  the  foundation  for  the 
reported  suspension. 

Mr.  Drew  added  that  he  had  previously  requested  f)f  the  Depai-t-ment  a  full  investi- 
gation into  his  ofhcial  conduct,  feeling  contident  that  it  will  result  in  his  complete 
vindication.  ^ 


[G.  M.  Troutman,  president,  Theo.  Kitchen,  cashr,  T.  L.  DeBow.  asst.  cash'r.     No  723     Canital 

$750,000.     Surph»8,  $1,200,000.1  ^-«pu^ 

The  Central  National  Bank, 

I'hiladelphia,  Jvnc  11,  1891. 
My  Dear  Sir:  Notwithstanding  the  numerous  reports  affecting  the  ability  and 
integrity  of  our  bank  examiner,  Mr.  Drew,  I  beg  leave  to  sav  that  in  my  judgment 
there  does  not  appear  any  evidence  whif  h  would  leave  me  to  doubt  the  propriety  of 
resumption  of  his  duties,  and  whenever  his  official  service  call  him  to  this  bank  he 
shall  be  cordially  welcomed. 
Very  truly  yours,  etc., 

G.  M.  Troutman, 

TT       ,,   CI   T  President, 

Hon.  E.  S.  Lacey, 

Comptroller, 


No.  723. 

[G.  M.  Troutman,  president.    Theo.  Kitchen,  cashr.    T.  L.  De  Bow,  asst.  cash'r. 

$750,000;  surplus,  $1,250,000.] 


No.  723.    Capital, 


The  Central  National  Bank, 

Philadelphia,  June  11th,  1891. 
Sir  :  As  the  developments  in  the  cases  of  the  Keystone  and  Spring  Garden  na- 
tional banks  seem  to  have  created  misgivings  in  some  directions  as  to  the  capacity 
and  eyen  integrity  of  the  bank  examiner,  Mr.  Wm.  P.  Drew,  I  desire  to  say  that  so 
far  as  our  experience  is  concerned  I  regard  him  as  the  most  competent,  thorough, 
and  rigid  examiner  this  district  has  ever  had  in  my  experience  of  twenty-five  years, 
and  withal  a  genial,  cultured  gentleman. 

I  should  extremely  regret  to  hear  of  any  resulting  disadvantages  to  his  interests, 
and  until  the  entire  facts  in  these  unfortunate  conditions  are  developed  I,  for  one, 
shall  certainly  defer  adverse  judgment. 
Very  respectfully, 

Theo.  Kitchen,  Cash'r.   . 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C. 


3557. 


[Sidney  F.  Taylor,  president.     R.  H. 


Rushton,  cashier. 
$1,500,000.] 


The  Fourth  Street  National  Bank.     Capital 


Philadelphia,  June  11th,  1891. 

Sir  :  Without  wishing  to  be  officious,  I  trust  you  will  permit  me,  as  an  individual, 
at  least,  to  speak  a  good  word  for  Mr.  William  P.  Drew,  the  national-bank  examiner 
of  this  city,  who  at  the  present  time  probably  needs  friends  to  stand  by  him  more 
than  he  has  ever  before  felt  their  want. 

I  can  testify  that  Mr.  Drew's  relations  to  the  Fourth  Street  National  Bank  have 
always  been  of  the  most  scrupulous,  painstaking,  and  conseryative  character.  He 
has  invariably  reported  to  your  Department  that  which  he  felt  called  for  your  atten- 
tion, and  wo,  at  least,  have  always  considered  that  his  decisions,  even  when  at  the 
moment  we  supposed  them  to  be  in  conflict  with  our  own  interests,  were  Just  and  in- 
spired by  a  determination  to  do  his  full  duty  towards  your  Department.  Thus  far 
1  have  been  unable  to  see  anything  in  the  newspapers  connected  with  the  investiga- 
tion of  the  Keystone  Bank  matters  and  of  the  Spring  Garden  Bank  matters  which 
has  led  me  to  change  my  opinion  concerning  Mr.  Drew's  honesty  of  purpose. 

An  honest  man  will  always  have  a  poor  chance  of  detecting  fraud  where  a  c<mspir- 
acy  of  scamps  exists  for  the  deliberate  i>urpose  of  deceiving  him,  and  so  unscrupu- 
lous, far-reaching,  and  powerful  a  combination  of  rascals  lias  rarely  come  to  my 
notice  as  that  connected  with  the  two  banks  which  are  now  before  the  public  for 
investigation. 

I  shall  be  more  than  ])lcased  individually  to  see  you  delay  taking  summary  action 
in  Mr.  Drew's  case  until  you  are  yourself  assured  of  his  l>eing  the  fool  or  villain 
which  the  creditors  of  the  above  banks  are  now  naturally  disposed  to  regard  him  as 
being.  In  writing  you  thus  at  length  I  feel  that  I  am  doing  no  more  than  justice 
to  an  honest  man  and  a  gentleman  whose  reputation  for  fidelity  has  heretofore  been 
nnimpeached  in  this  community. 
Yours,  very  truly, 

S.  F.  Tyler. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


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June  11,  1891. 
Mt  Dear  Sir:  For  the  past  fourteen  years  Mr.  Drew  has  been  making  examina- 
tions of  the  Pirst  Nat.  Bank,  of  which,  as  you  are  aware,  I  am  the  eashier.  During 
all  these  years  Mr.  Drew  has  been  careful  and  conseienti«uis  in  his  work,  and  snite 
of  the  adyerse  criticism  arising  from  the  failure  of  the  Keystone  and  Si)rin"  (/arden 
banks,  1  am  satisfied  of  his  integrity  and  ability,  and  sincerely  hope  he  will  c<mtinue 
his  tunctions  as  bank  examiner  in  Philadelphia. 
I  am,  yery  truly,  yours, 

TT       x'    o,  T  Morton  McMichael. 

Hon.  E.  S.  Lacey, 

Comptroller* 


1647. 


[William  H.  Rbawu,  president.    Joseph  P.  Mumford,  cashier.] 

National  Bank  of  the  Republic, 
31S  Chestnut  Street,  Philadelphia,  June  12,  1891. 
Deah  Sir  ;  Our  newspapers  of  yesterday  and  to-day  have  been  full  of  rumors  of  the 
Ruspension  of  Mr.  William  P.  Drew,  national-bank  examiner.    Mr.  Drew  has  stated 
that  the  rumors  are  false. 

3792 15 


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226 


INVESTIGATION    OF   NATIONAL    BANKS. 


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I  deem  it  a  fit  occasion  to  say,  injustice  to  him,  that  our  coulidence  in  his  integ- 
rity, ability,  and  litnesa  remains  unimpaired  by  anything  in  connection  with  the 
recent  national-bank  failures  here  known  to  us,  and  it  seems  to  me  that  he  should  be 
maintained  in  his  positicm  while  under  lire  until  there  is  undoubted  cause  for  his 
suspension  or  removal.  At  a  meeting  of  the  Clearing;  House  Association,  on  the  Ist 
inst.,  he  submitted  a  letter  asking  for  an  investigation  at  the  hands  of  the  associ- 
ation. It  was,  however,  deemed  inexpedient  to  make  such  investigation,  if  at  all, 
while  other  investigations  are  in  progress. 
Very  respectfully,  yours, 

W.  H.  Rhawn,  Pt. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


[United  States  Depositary.    No.  3723 

Wni.  Steele,  cashier     ''''"'  '""- ♦ 

Surplus,  $115,000.] 


Wm.  M.  Sinjjerlv.  president. 
The  Chestnut  Street  National  Jiiink,  721  Chestnut  street 


Isaac  Cooper,  vice-president 
Capital  $500,000 


Philadelphia,  Pa.,  I3th  June,  1891. 
Dear  Sik:  In  connection  with  the  bank  matters  of  this  city  I  think  it  but  fair 
to  Mr.  Examiner  Drew  that  I  have  always  had  the  fullest  confidence  in  his  ability 
and  integrity,  and  I  am  not  willing  to  change  my  good  opinion  while  he  is  under  lire. 
I  think  my  opinion  is  held  by  the  banks  generally  in  this  city. 
I  am,  with  respect,  tr'y  yours, 

William  M.  Singekly,  Pres'd't. 
Hon.  E.  S.  Lacey,  Comptroller. 


[Robert  M.  Yardley,  Receiver  of  Kmstone  National  Bank.  No.  2291.    Removed  to  room  21,  third 

tioor,  post-ollire  building.] 

Philadelphia,  June  12,  1891. 
Sir:  I  have  received  the  inclosed  letter  from  the  subcommittee  of  the  committee 
on  finance  of  the  Philadelphia  council,  and  at  their  request  respectfully  refer  it  to 
you  for  instructi<ms. 

Yours  respectfully, 

Robert  M.  Yardley, 

Receiver, 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency, 


June  12,  1891. 
Sir:  You  will  permit  an  examination,  under  advice  of  the  U.  S.  district  attor- 
ney, into  all  matters  and  aeeouuts  of  your  trust,  by  a  projjer  representative  of  its 
creditors,  and  particularly  of  aceountM  wliere  frauds  or  irregularities  are  charged, 
with  such  reservations  of  confidence  as  tlie  interests  of  the  creditors  of  the  bank  or 
the  ends  of  public  justice  mak<>s  necessary. 

You  will  inform*  Hon.  Edwin  S.  Stuart',  mayor  of  Philadelphia,  and  Hon.  John  R. 
Read,  U.  S.  district  attorney,  of  your  having  received  this  communication. 
Very  resi)ectfully, 

E.  S.  LacIcy, 

^  »,  ,,  Comptroller. 

Hon.  R.  M.  Yardley, 

Beceivei'  Keystone  National  Bank,  Philadelphia,  Pa, 


[Telegram.] 

Hon.  E.  S.  Lacey: 
Jones's  testimony  without  my  authority  or  knowledge. 


Phila.,  Pa.,  June  13,  189 1. 
W,  P.  Drew. 


INVESTIGATION   OF   NATIONAL   BANKS. 


227 


Philadelphia,  June  IS,  1891. 

Sir:  As  I  telegraph  you  the  evidence  of  my  assistant,  Mr.  Jones,  before  the  coun- 
cil's committee  was  without  my  authority  or  my  knowledge.  He  could  have  in- 
tended to  give  only  his  impression,  for  I  have  had  no  talk  with  him  on  the  points 
referred  to.  I  have  endeavored  to  correct  the  mistaken  impression  in  the  paper  of 
to-morrow. 

All  through  this  most  unpleasant  atfair  I  have  shrunk  from  no  responsibility,  and 
believe  that  events  will  prove  the  judiciousness  of  the  course  pursued  by  the  Gov- 
ernment in  every  important  detail  however  much  I  must  regret  that  any  hiatus  should 
ai»pear  to  have  existed  in  the  course  of  information  comnmnicated,  and  notwith- 
standing the  unmerited  reproach  that  has  been  bestowed  on  me  by  certain  papers 
and  others,  I  am  persuaded  that  my  conduct  will  stand  the  strict  test,  and  ultimately 
be  commended  by  the  candid  and  intelligent.  For  the  first  time  for  three  months, 
I  have,  within  the  last  ten  days,  met  many  of  the  leading  men  of  our  bank  here,  and 
have  been  received  by  expressions  of  welcome  and  confidence  which  have  comforted 
me  indeed. 

The  committee  having  run  out  Mr.  Wanamaker's  clue  most  unsuccessfully,  it  is 
not  so  clear  now  what  other  they  will  address  themselves  to,  but  I  have  had  private 
assurances  from  individual  members  that  the  course  of  the  Government  in  regard  to 
that  bank  is  not  condemned  universally. 

Of  course  I  am  most  anxious  to  be  delivered  from  this  body  of  death,  and  hojie 
you  will  be  able  very  soon  to  have  the  conference  suggested  in  your  letter  of  .5th 

inst. 

With  the  exception  of  lists  of  notes,  etc.,  which  the  receiver  desires  to  have  pre- 
pared with  unaccustomed  detail,  I  am  practically  through  with  the  Spring  Garden 
IJank.  The  clearing-house  committee  will,  at  their  meeting  cm  Tuesday  next,  prob- 
ably act  on  my  request  for  an  examination  into  the  falsificatioA  of  acct.  ancl  bal- 
ances of  the  l)ook8  of  the  Keystone  Nat.  Bank  at  the  time  of  my  examinations  of  that 
bank,  with  a  view  of  ascertaining  whether  there  was  any  censurable  negligency  on 
uiy  part  in  failinjj  to  discover  the  irregularities,  and  Mr.  Philler,  prest.  of  the  Ist 
Nat.  Bank,  has  kindly  consented  to  make  the  inspection.  Besides  being  one  of  the 
leading  presidents  of  our  national  banks,  as  you  know,  he  is  likewise  a  trained 
accountant  and  bookkeeper. 
I  have  every  confidence  in  his  candor  and  ability. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washinqton,  D.  C. 


Treasury  Department, 
Office  Of  Comptroller  of  the  Cirrency, 

Washington,  I).  C,  June  13,  1891, 

Sir:  You  will  find  enclosed  herewith  my  checks  Nos.  2312  and  2313,  on  the  Treas- 
urer of  the  United  States,  for  $100  and  $439.32  respectively,  drawn  to  the  order  of  W. 

P.  Drew. 

Please  hand  these  checks  to  Mr.  Drew,  and  state  that  the  Comptroller,  after  due 
consideration,  does  not  feel  justified  in  allowing  the  charge  for  subsistence  as  the  ex- 
aminer during  the  period  of  service  was  at  home. 

The  bill,  receipted  by  Mr.  Drew,  is  enclosed  herewith,  to  be  returned  to  him,  and 
you  will  please  take  a  proper  receii)t  for  the  amount  covered  by  the  enclosed  checks. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 
Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa. 


[Telegram.] 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 
•  Washington,  June  13,  1891, 

Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa.: 

Withhold  delivei-y  of  checks  in  letter  to-day  until  further  advised. 

E,  S.  Lacey. 

Comptrollei\ 


•1 


'^i  '¥'i 


^ 


228 


INVESTIGATION   OF   NATIONAL   BANKS. 


[James  V.  Watsou,  Preaideut.     E.  H.  Webb,  Cnsbicr.] 


Consolidation  National  Bank, 

PItifadelphia,  6,  IS,  1891. 

Dkau  Sir:  Such  severe  strictures  have  been  passed  by  the  public  press  upon  Mr. 
William  P.  Drew,  who  has  been  for  many  years  a  trusted  bank  examiner  in  this  city, 
in  regard  to  his  examinations  of  the  suspended  Keystone  and  Spring  Garden  Nat. 
Banks,  that  feel  willing  to  ask  for  him  a  fair  and  candid  hearing  before  coudomna- 
tiou. 

Very  truly, 

James  V.  Watson,  Presdt. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency. 


Office  of  the  United  States  District  Attorney, 

Eastern  District  of  Pennsylvania, 

PhUadelpMay  June  ISth,  1891. 

Dear  Sir:  I  am  in  receipt  of  a  letter  from  the  Department  of  Justice,  dated  June 
9,  1891,  enclosing  a  cojjy  of  the  letter  of  the  President  of  the  tjnited  States  to  the 
honorable  Edwin  S.  Stuart,  mayor  of  this  city,  relative  to  the  request  that  you  per- 
mit the  committee  of  councils,  now  investigating  the  actions  of  the  late  city  treas 
urer  with  the  Keystone  Bank,  to  examine  and  inspect  all  of  the  books,  documents, 
and  records  of  the  said  bank. 

In  the  letter  of  the  At  torney-(  Jeneral  to  me  it  is  suggested  that  under  my  advice 
you  permit  an  examination  by  proper  representatives  of  the  creditors  of  the  bank 
into  all  matters  and  account  where  frauds  or  irregularitir'S  are  charged,  with  such 
reservations  of  confidence  as  the  interest  of  the  creditors  of  the  bank  or  the  interest 
of  public  justice  make  necessary. 

As  stated  by  the  Attorney-General,  the  puri>ose  is  that  the  representatives  of  the 
creditors  be  permitted  to  examine  whatever  will  throw  light  upon  the  matters  prop- 
erly the  subject  of  their  investigation.  At  the  same  time  the  examination  should 
Dot  be  regarded  as  a  license  to  explore  and  expose  matters  disconnected  with  the 
alleged  frauds  and  irregularities  to  the  injury  of  persons  in  any  way  connected  with 
those  matters. 

Subject  to  the  limitations  suggested  by  the  President  and  the  Attorney-General,  I 
see  no  reason  why  the  committee  <»f  councils  or  their  experts  should  make  such  an 
examination  as  is  suggested  by  the  l)ei)artment  of  Justice. 
Respectfully,  yours, 

John  R.  Read, 

U.  S.  Attorney. 

Hon.  Robert  M.  Yakdi.kv, 

Receiver  of  the  Kcyaioue  Xalinunl  liauTc., 

Q.  As  the  result  of  the  investigation  there  was  no  oommniiication 
found  from  Drew  to  you,  or  from  you  to  Drew,  in  relation  to  that  matter, 
between  the  1st  and  the  24th  of  January?^ — A.  Between  the  9th  an(l 
the  24th — I  mi<>iit  say  between  the  1st  and  the  24th — there  was  no  let- 
ter from  him  to  me  oflicially  or  privately,  and  none  from  me  to  him  oth- 
cially  or  privately,  durin«»-  tlie  i)eriod  referred  to.  Later  on  Drew  wrote 
me,  as  you  will  see,  tliat  he  is  unable  to  find  any  letter  from  me  or  any 
communication  or  telegram  in  relation  to  the  matter. 

ByMr.  Sperry: 

Q.  You  do  not  mean  that  he  did  not  s€»ttle  according  to  any  instruc- 
tions from  the  office? — A.  He  had  no  instructions  from  the  office,  and 
he  acknowledges  that  he  had  none. 

Q.  Had  he  settled  before  he  reported  ? — A.  He  liad  settled  before  he 
rei)orted.  I  call  attention  to  the  fact  that,  in  the  first  place,  there  is  the 
phraseology  of  the  letter;  in  the  second  place,  the  fact  that  no  letter  of 
any  kind  was  fcmnd  in  my  files;  thirdly,  that  he  had  no  copy  of  any  let- 
ter or  telegram  which  he  sent  to  me  during  that  tnne;  fourthly,  that  he 
had  no  letter  or  telegram  from  me  during  that  time;  which  all  seems  to 
corroborate  my  theory  that  I  never  received  any  information  from  him 
as  to  that  matter  prior  to  the  24th  of  January. 


\ 


INVESTIGATION  OF  NATIONAL  BANKS. 


229 


By  Mr.  Wike  : 

Q.  The  promptness  with  which  he  seems  to  have  made  daily  reports, 
or  nearly  daily  iei)orts,  1  think,  subsequently,  makes  it  appear  strange 
that  he  should  not  have  during  that  period  from  January  9  to  tha  24th 
made  some  statement  about  what  he  was  doing  or  told  what  he  had  dis- 
covered.— A.  The  next  communication,  my  recollection  is,  which  I 
leceived  after  the  24th  of  «Tanuary,  with  the  exception  of  one  telegram, 
was  on  the  IGth  of  February,  which  was  twenty-four  days  after  January 
24,  without  any  information  from  him. 

In  regard  to  what  he  states  in  his  letter  of  June  8,  of  having  said  the 
lijipers  were  in  my  pocket,  T  can  only  say  that  he  is  mistaken  about  it. 
The  only  comnninication  I  had  then  received  was  this  large  report, 
which  it  would  be  impossible  t/o  get  into  my  pocket  it*  1  wanted  tx),  and 
the  one  letter  of  January  24.     lie  came  on  next  diiy  after  their  recei]»t. 

By  Mr.  Wike  : 

(^.  Was  there  any  cause  assigned  as  to  his  removal  ?  Perhaps  a  let- 
ter was  read  while  1  was  out. — A.  He  was  not  removed.  He  was  di- 
rected, I  think,  that  he  was  not  to  reenter  upon  examinations. 

Q.  No  reasons  were  given  for  his  susi)ension? — A.  No,  sir. 

By  the  Chairman  : 

Q.  What  occurred  between  the  receipt  of  the  letter  of  June  13  and 
tlie  telegram  of  the  same  date  ? — A.  That  will  be  shown  further  on. 
There  had  been  no  investigation  to  show  whether  Drew  was  indebted 
to  the  bank,  and  the  receiver  was  advised  to  see  whether  or  not  he  was 
so  indebted. 

After  the  reading  of  the  letter  dated  June  13,  1891,  of  Mr.  John  R. 
Keed,  United  States  attorney,  to  Robert  M.  Yardley,  receiver  of  the 
Keystone  Bank,  the  committee  adjourned  until  to-morrow,  Wednesday, 
May  4, 1892,  at  10:30  a.  m. 


WASHINGTON,  D.  C, 

Wednesday^  May  4,  1892, 

The  committee  met  at  10 :  30  a.  m. 

Present:  The  chairman  and  Messrs.  Sperry,  Cate,  W^alker,  Wike, 
Busey,  and  Henderson. 

The  Chairman.  Mr.  Lacey  will  now  continue  the  reading  of  the 
letters,  the  last  one  he  read  being  of  date  June  13. 

Witness  read  letters  and  telegrams  as  follows: 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  15,  1891. 
Mr.  William  M.  Singerly, 

Care  the  Chestnut  Street  National  Bank,  Philadelphia,  Pa. : 

Dear  Sir  :  I  am  in  receipt  of  your  favor  of  the  13th  instant,  and  note  what  you  say 
in  commendation  of  Mr.  W.  P.  Drew,  National  Bank  Examiner,  which  shall  have 
very  careful  consideration. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


I  ■! 


i'     .  ^-  :i 


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I 


ti 


l^ 


*^.--  ■■ 


230 


INVESTIGATION    OF   NATIONAL   BANKS. 


TnKAsrRY  Depautment, 
Office  CoMrTKuLi>ER  of  the  Cukrency, 

Washington,  D,  C,  June  15,  1891. 
Mr.  S.  V.  Tylkr, 

Care  the  Fourth  Street  Xatianal  Bank,  Philadelphia,  Pa.  : 

Dear  Sir:  I  am  in  receipt  of  your  letter  of  the  11th  instant,  and  note  what  yon 
say  in  commendation  of  Mr.  \V.  P.  Drew,  National  Bank  Examiner,  whicli  shall  have 
Tery  careful  consideration. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  15,  1891. 
Mr.  G.  M.  Troutman, 

Care  the  Central  Xational  Bank,  Philadelphia,  Pa.: 

Sir:  I  am  in  receipt  of  your  favor  of  the  11th  instant,  and  note  what  you  say  in 
commendation  of  Mr.  W.  P.  Drew,  National  Bank  Examiner,  which  shall  have  very 
careful  consideration. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


Treasury  Department, 
Office  of  the  Comptroller  of  thk  Currency, 

Washington,  D.  C,  June  15, 1891 
Mr.  Theo.  Kitchen, 

Care  the  Central  National  Bank,  Philadelphia,  Pa. : 

Dear  Sir:  I  am  in  receipt  of  your  letter  of  the  11th  instant,  and  note  what  you 
say  in  commendation  of  Mr.  W.  P.  Drew,  National  Bank  Examiner,  which  shall  have 
careful  consideration. 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


Treasury  Department, 
Office  of  the  Comptroller  of  the  CiTimKNCY, 

Washington,  D.  C,  June  15,  1891. 
Hon.  Morton  McMichael, 

Care  First  yational  Bank,  Philadelphia,  Pa. : 

Dear  Sir:  I  am  in  receipt  of  your  favor  of  the  11th  instant,  and  note  what  you 
say  in  commendation  of  Mr.  W.  P.  Drew,  National  Bank  Examiner,  which  shall 
have  very  careful  consideration. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


Trea.sury  Department, 
Office  of  Comptroller  of  the  Currency, 

Wathington,  D.  C,  June  15,  1891. 
Mr.  W.  H.  Rhawn, 

Care  National  Bank  of  the  Repuhlic,  Philadelphia,  Pa.: 

Dear  Sir:  I  am  in  receipt  of  your  favor  of  the  12th  instant,  and  note  what  you 
Bay  in  commendation  of  Mr.  W.  P.  Drew,  National  Bank  examiner,  which  shall  have 
very  careful  consideration.  • 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


INVESTIGATION   OF   NATIONAL   BANKS. 


231 


Treasury  Dkpartment, 
Office  of  Comptrollku  of  tiik  Cuurfncy, 

Washington,  D.  C,  June  15, 1891, 

Mr.  James  V.  Watson, 

Care  Consolidation  National  Bank,  Philadelphia,  Pa.: 

Dear  Sir  :  I  am  in  receipt  of  your  favor  of  the  13th  instant,  and  note  what  you  say 
in  commendation  of  Mr.  W.  P.  Drew,  National  Bank  examiner,  which  shall  have 
careful  consideration. 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


Washington,  J%me  15,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency: 

Dear  Sir  :  In  your  published  statement  to-day  in  reference  to  the  Keystone  Bank 
I  "see  two  telegrams  which  I  transmitted  to  ymi  for  your  information  and  had  en- 
tirely forjajotten. 

Prior  to  making  up  the  statement  that  I  presented  to  the  council's  committee,  I 
asked  General  Nettleton  if  he  had  any  knowledge  of  any  occasion  or  time  when  I  had 
mentioned  any  one  for  receiver,  or  in  any  way  delayed  the  appointment,  and  he  an- 
swered no;  and  when  I  saw  him  later  he  stated  to  me  that  he  had  talked  with  you 
on  this  subject  and  you  had  confirmed  his  statement  to  me.  Upon  this  assurance, 
confirming  my  own  recollections,  I  prepared  the  paper  submitted  by  me  to  the  com- 
mittee. 

I  beg  now  to  ask  if  the  telegrams  referred  to  influenced  your  action  in  delaying 
the  appointment,  or  whether  you  have  any  knowledge  that  leads  you  to  suppose  that 
I  desired  the  appointment  of  any  particular  person  tor  receiver. 
Very  truly  yours, 

.John  Wanamaker. 


i 


11 


[Address  reply  to  "Comptroller  of  the  Currency,"  Washington,  D.  C] 

Treasi:ry  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  15,  1891. 
Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa.: 

Dear  Sir:  I  am  in  receipt  of  your  favor  of  the  12th  instant,  inclosing  a  letter  from 
the  subcommittee  of  the  committee  on  fiiumceof  the  Philadelphia  council,  request- 
ing that  you  furnish  the  committee  with  the  stock  ledger,  stock  transfer,  and  certifi- 
cate'and  dividend  books  of  your  trust. 

In  reply,  you  are  respectfully  referred  to  my  letter  of  the  12th  instant,  in  which 
you  will  find  stated  the  conditions  under  which  you  are  to  permit  an  examination  of 
the  matters  and  accounts  of  your  trust. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  16,  1891. 
Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa.: 

Dear  Sir:  You  will  no  doubt  find  among  the  assets  of  your  trust  a  daily  state- 
ment which  will  show  the  resources  and  liabilities  of  the  Keystone  National  Bank 
at  the  close  of  business  upon  each  day.  This  will  be  really  a  trial  balance  taken 
from  the  general  ledger.  I  wish  you  would  make  out  and  send  me,  at  your  early 
convenience,  a  statement  showing  the  condition  of  the  bank  at  the  close  of  business 
on  each  of  the  following  days : 
January  24,  February  16,  and  February  28,  1891. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 


m 


a. 

I 


h 


232 


INVESTIGATION   OP   NATIONAL   BANKS. 


INVESTIGATION   OF  NATIONAL   BANKS. 


233 


[Telegram.] 

PiiiLA.,  Pa.,  June  16,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Waslm.,  D.  C: 

I  have  informally  stated  that  you  could  have  had  no  inforiuatlon  except  from  me, 
and  all  rriticisuis  otherwise  are  without  my  anthtnity.  Vour  report  entirely  satis- 
factory to  the  banks.  Can  you  hasten  the  conference  and  remit  my  bills?  I  await 
your  orders.     Events  will  completely  justify  the  Department. 

W.  P.  Drew. 


[AddresH  reply  to  "  Coinptrollor  oltLe  Cnrreucy,"  Wa.shiugton,  D.  C] 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Waslniujtou,  I).  C,  June  16,  1891. 

Hon.  R.  M.  Yardley, 

Receiver,  Keystone  National  liauk,  I'hiluilelphia,  Pa.: 
Sir:  Referriuj^  to  telegram  of  the  13th  instant,  you  are  respectfully  informed  that 
the  checks  contained  in  office  letter  of  the  same  date  may  be  delivered  to  Mr.  W.  P. 
Drew,  if  he  is   not  directly  or  indirectly  indebted  or  liable  to  your  trust  in  anyway. 
When  the  delivery  is  made,  the  amount  of  the  checks  aliould  be  credited  to  the 
account  of  the  Comptroller  of  the  Currency  on  your  books  and  charged  to  ''Loans 
paid  and  other  disbursements." 
Respectfully,  yours, 

R.  M.  Nixon, 
Deputy  and  Acting  Compt roller. 


Treasury  Department, 
Office  of  the  C<)Mptkollkr  of  the  Currency, 

WaHhinyion,  D.  C,  June  16,  1891. 
Hon.  John  Wanamaker, 

Washington,  D.  C: 

Sir:  I  am  in  receipt  of  your  note  of  yesterday  in  which  you  refer  to  the  two  tele- 
grams from  yourself  <[Uoted  in  my  communication  of  the  10th  instant  to  the  Secre- 
tary of  the  Treasury,  covering  the  transactions  of  this  Bureau  in  connection  with 
the  failure  of  the  Key8t<me  National  Bank. 

In  reply  to  your  inquiry  I  beg  leave  to  say  that  you  at  no  time  indicated  any 
preference  for  any  person  for  appointment  as  receiver.  The  telegrams  alluded  to 
came  soon  after  the  closing  of  the  bank  and  at  least  a  month  before  a  receiven  was 
appointed.  At  that  time  no  accei)table  person  had  appeared  as  an  applicant,  and  it 
is  quite  safe  to  say  that  no  delay  in  the  appointment  was  caused  by  their  receipt. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller, 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

WaHhington,  1).  C,  June  16,  1S91. 
Mr.  William  P.  Drew, 

National  Bank  Examiner,  S9S9  Chestnut  Street,  Philadelphia,  Pa.: 

Sir:  Your  several  letters  of  recent  date,  togetlter  with  telegram  of  to-day,  have 
come  to  hand.     Great  pn'ssure  of  otiicial  duties  has  prevented  my  replying  earlier. 

I  am  glad  to  learn  from  your  telegram  that  the  statement  made  by  me  under  date 
of  June  10th,  to  the  Secretary  of  the  Treasury,  in  relation  to  the  action  of  this  Bu- 
reau in  connection  with  the  failure  of  the  Keystone  National  Bank,  is  regarded  as 
entirely  satisfactory  by  the  banks  in  Philadelphia,  and  that  in  your  opinion  events 
will  completely  justify  the  Department. 

The  criticisms  recently  })asscd  upon  your  official  action  in  connection  with  the 
failed  bank,  and  your  frequent  appearance  before  the  committee  of  investigation 
while  still  in  charge  of  one  or  both  of  the  two  insolvent  banks,  has  caused  me  to 
delay  the  consideration  of  the  facts  connected  with  the  official  discharge  of  your 
duties  in  connection  with  the  Keystone  Bank.    Besides,  the  Comptroller  himself  has 


been  greatly  occupied  in  preparing  the  published  statement  and  in  getting  together 
and  havin*'-  copied  the  correspondence  in  relation  thereto  which  accompanied  it.  It 
iias  seemed  tome,  further,  that  the  exigencies  of  the  public  service  were  not  such  as 
to  demand  procee«ling  with  the  investigation  in  the  midst  of  so  much  excitement  as 
now  prevails.  The  matter,  however,  has  not  been  lost  sight  of  and  will  be  taken 
up  at  the  earliest  practicable  moment.  When  the  proper  time  arrives  you  will  have 
due  notice.  In  the  meantime  I  deem  it  proi>er  to  reiterate  what  was  said  in  my 
letter  to  you  of  Junc^th,  and  to  direct  that  no  further  examiuation  be  proceeded  with 
until  the  matters  alluded  to  have  been  duly  investigated  and  a  decision  reached. 
Very  respectfully,  ^   ^   ^^^^^ 

Comptroller. 


Confidential.] 


Washington,  D.  C,  June  18,  1891. 


Hon.  Edw.  S.  Lacey, 

Comptroller  of  the  Currency: 
Dear  Sir:  At  the  time  of  the  failure  of  the  Keystone  National  Bank  of  Philadel- 
phia I  held  as  collateral  2,515  or  2,516  shares  of  the  stock.  A  doubt  has  been  raised 
as  to  whether  this  stock  was  properly  issued.  The  fact  that  Mr.  Marsh,  the  former 
president,  and  no  other  person,  raised  this  question  while  1  held  the  stock,  and  his 
statement  to  me  being  only  that  he  could  not  account  for  a  portion  of  the  stock,  and 
that  if  I  would  consent  to  accept  actual  ownership  of  all  the  stock  and  pay  assess- 
ments on  it  to  aid  in  rehabilitating  the  bank,  he  would  obtain  from  other  holders 
enough  stock  to  cover  any  irregularities  of  issue,  if  such  existed,  coupled  with  his 
interested  motive  in  getting  the  Lucas  estate  settlement,  gave  me  strong  reasons  to 
believe  that  the  stock  1  held  was  properly  issued,  while  in  any  event  it  could  make 
no  difference  to  an  innocent  holder  of  collateral  whichever  way  the  case  stood,  yet 
I  feel  an  interest  in  ascertaining  the  facts  from  the  stock  books,  which  should  show 
the  true  state  of  affairs.  I  beg  to  ask  you  to  direct,  if  not  inconsistent  with  the  pub- 
lic interest,  that  the  receiver  allow  my  representative,  under  his  supervision,  to  ex- 
amine the  stock  and  transfer  books  for  the  purpose  of  determining  the  exact  condi- 
tion of  this  matter. 

Yours,  respectfully, 

Jxo.  Wanamaker. 


[Robert  M.  Yardley,  receiver  of   Keystone  National  Bank,  removed  to  No.  2291,  Room  21,  third 

floor,  Post-Oflice  building.] 

Philadelphia,  June  18th,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Treasury  Department,  Washington,  D.  C: 

Sir:  I  beg  to  acknowledge  your  ftivor  of  the  16th,  and  herewith  inclose  you  state- 
ment showing  the  condition  of  the  Keystone  National  Bank  on  the  following  days : 
January  24th,  February  16th,  and  February  28th,  1891. 
Yours,  respectfully, 

Robert  M.  Yardley, 

Receiver. 


-i 


234 


INVESTIGATION   OF   NATIONAL   BANKS. 

Dailfi  Htntcmenl  of  the  KctfMtone  Nalioual  Bank,  1891. 


Due  bills 

Capital  stock 

Circulation 

Profit  an«l  loss 

lnt<!rest 

Discount 

Exehan<j;e 

Surplus  fund 

liills  iliscounted 

U.  S.  bonds 

Redemption  fund  witli 

U.  S.  Treasurer 

Furniture  and  fixtures 

Premium 

Expenses 

Dividend 

Individual  deposits 

Due  bv  and  to  banks 

and  bankers 

Tradesmen's  Nat.  Bk., 

N  Y 
Chase  Nat.  Bk.,N.Y.. 

Suspense  

Sliorts  and  overs 

Certificates  dcjiosil 

Stocks  and  bonds 


GENERAL  LEDQBR. 


Jan.  24. 


Assets. 


Asheville,  N.  C.  West- 
em  Carolina  Bank. . 

Baltimore,  Cilizens' 
National  Bank 

Batavia,  N.  Y.,  Hank 
of  Batavia 

Batavia,  N.  Y.,  First 
National  Bank 

Bristol,  Pa.,  Farmers' 
Nat.  Bank  of  Bucks 
Co 

Boston,  Nat.  Bank  of 
Commerce 

Camden,  N.  J.,  Na- 
tional State  Bank 

Charleston,  S.  C..  Caro- 
lina Savings  Bank. . 

Wash'nNat.Bk.N.  Y. 

Chester,  Pa.,  Delaware 
Co.  National  Bank.. 

Chicago,  111,,  Fort 
Dearborn  National 
Bank 

Conshohockeu,  Pa., 
First  National  Bank. 

Dowington,  Pa.,  Dow- 
ingtonNat.Bk 

East  Greenville,  Pa., 
Perkiomen  Nat.  Bank 

Frankford,  Pbila.,  Sec 
ond  National  Bank  . . 

Germantowu,  Phila,, 
Nat.  Bank  of  (iuitn. . 

Harrisburg,  Pa.,  First 
National  Bank 

Honeybrook.  Pa., First 
National  Bank 

Integrity  Title  Ins.  <fc 
Trust  Co.,  Pbila    .... 

Jenkintowu,  Pa.,  Jen- 
kintown  National 
Bank 

Lancaster,  Pa.,  Reed, 
MoGraau&  Co 


$7, 12.-..  53 

.365.33 

i,'ii7,'949.'68" 
50, 000.  00 

2,  250.  00 
10,  000.  00 

2,  000.  00 
11,652.97 


12, 480. 16 

28.  6.52. 45 

.W,  724.  70 

119,309.65 


Liabilities. 


$16,  697.  22 

500, 000.  00 

45, 000.  00 

11,516.97 

'    5,834.63 

166,666.06 


6, 120.  00 
719, 288.  59 

7.  552. 45 

2, 500. 00 


Feb.  16. 


Feb.  28. 


Assets. 


Liabilities. 


Assets. 


$12,505.21 
784.29 

986," 344.  .54 

50,  0(»0.  00 

2,  250.  00 
10,  000.  00 

2,  000.  00 
20, 147.  65 


51, 783. 93 

25,  260. 98 

8, 846. 28 

286, 929.  53 

209, 326.  20 


453, 810. 02 


.|    $50,494.58 

.1    500,000.00 

45, 000. 00 

.        11,516.97 

""'7,' 610.' 44 

166, 666. 06 


6,  120.  00 
1.308,078.56 

'        6,  812.  84 


I    $12,466. 

i,333. 

949.843. 
50,000. 

2,250. 
10,  000. 

2,000, 
21,459, 


653.33 
77, 701. 91 


58 

54 

46 
00 

00 
60 
00 
91 


Liabilities. 

$39, 859. 70 

500.000.00 

45,  000.  00 

11,516.97 

16,552.95 

166,666.66 


56, 403. 86 


12,711. 

6, 274. 
197,  858. 
265, 044. 

1. 697. 


09 
58 
83 
70 
45 


423, 810. 02 


6,120.00 
1, 245, 012. 71 

6, 719. 72 


48, 371. 91 


1, 414, 509. 86  1, 414, 509. 86  i2, 113, 988. 63  |2, 113, 088. 63 


164.34 


387. 65 
393. 02 


945. 18 


«83.67 


305. 97 

5, 675. 10 

575.44 


005.51 


923.95 


4.89 


91.13 


2.00 


11.241.99 
4,641.80 


5, 887. 71 


2, 134. 10 


319. 32 


1, 235. 07 


344.62 


2,013,153.96  12,013,153.96 


2, 233. 75 


27.50 


4, 402. 79 
785.11 


2,469.23 


8, 700. 71 
26.61 


3,814.87 


244.32 


1, 463. 94 
213. 94 


77. 42 
2.7C 


695.  36 


«,  653.  27 
4, 285. 55 


.15 


2, 058. 95 
0, 903. 76 


413.00 


293.58 


1.00 


105.00 


139.00 


868.09 


> 


INVESTIGATION   OF   NATIONAL   BANKS.  23o 

Daily  HtaUmeui  of  the  Ke,, stone  National  Bank,  /,99i-C«n tinned. 


Lewisburg,  Pa.,  Union 

National  Bank 

Lebanon,  Pa.,  Lebanon 

National  Bank... 

Manayunk,         Phila., 

Mauiivunk  Bank  ... 
Media  Kortbern   Nat. 

Bk. -.-•----•-- 

N.  S.  Fund 

Norristo^^^l  Nat.  Bk   . . 

Pittsburg  Nat.  Bk 

Pottstovvn  Nat.  Bk 

Pottsville  Nat.  Bk 

Reading  Nat.  Bk 

Ricbmoud  Nat.  Bk 

Steelton  Nat.  Bk 

Scranton  Nat.  Bk 

Wasbinston  Nat.  Bk. 
Wheeling  Nat.  Bk.... 
WestPliila.  Nat.  Bk.. 
West  Chester  Nat.  Bk 
Wilmington  Nat.  Bk . . 
Atlanta  Nat.  Bk 

Toronto  Nat.  Bk 

Chester  Nat.  Bk 

Dover  Nat.  Bk 

Tradesmen's       Triist, 

Chester  Val.  Bk.... 
Coat«8ville  Nat.  Bk. . . 
Chicago  Ist  Nat.  Bk.. 


GENERAL  LEDGER. 


Jan.  24. 


Feb.  16. 


Assets. 


Liabilities. 


Assets. 


$2,814.81  '. 


Liabilities.        Assets. 


Feb.  28. 


Liabilities. 


! 


$336.  5u 


1)6.32 

ioi-.^o 

"84."  38" 

"638.'i5 

719.  50 


I 


164.02 


2,  500. 00 


8, 000.  00 


$787. 16 
552. 72 

■"776,"  97' 
i.' 999."  66" 

2, 023. 64 

"iii.si 


2,  518. 91 
886.20 
5,318.02  I 
91.00  I 


108. 40 


$82. 40 


22.17 

23.20 

452.  33 

'2'i95.92 


2.56 


12,480.15  1        7,552.45         51,783.93  1        6,812.84 


$3, 776. 98 

'"977.98 
2, 195.  70 
2, 003. 57 

2i6.'84 

"  'i69.25 

""755."  78 

428.80 

904.08 

2. 267.  82 

125,70 


12, 000. 00 

165.  65 
2, 476. 20 


$2L30 
"446.33 
"122.' 87 


2.56 


56,403.86  I        6,719.72 


[Address  reply  to  "Comptroller  of  the  Currency,"  Washington,  D.  C] 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

mishington,  D.  C  ,  June  19,  1S91. 

Hon.  R.  M.  Yardley,  •        , , .,  ^  ,  . .      „ 

Receiver,  Key  atone  National  Bank,  Phihidelphia,  Fa.: 

Sir:  You  will  permit  an  exaniiiuitiou,  under  advice  of  the  U.  S.  district  attorney 

and  under  your  supervision,  of  the  stock  and  transfer  books  of  your  trust  by  a  pioper 

representative  of  Hon.  John  Wanamaker,  with  such  reservations  of  confidence  as  the 

interests  of  the  creditors  of  the  bank  or  the  ends  of  public  justice  makes  necessary. 

Very  respectfully,  ^  g  ^^^^^^ 

Comptroller. 


June  19,  189L 

Hon.  John  Wanamaker, 

Washington,  D,  C: 
Sir:  I  beg  leave  to  acknowledge  the  receipt  of  your  letter  of  the  18th  instant  and 
in  reply  thereto  to  say  that  in  accordance  with  your  request  I  have  this  day  addressed 
to  Hon.'R.  M.  Yardley,  receiver  of  the  Keystone  National  Bank,  a  communication, 
of  which  a  copy  is  herewith  inclosed. 

Very  respectfully,  ^    ^    j^^^^^, 

Comptroller. 


I 


.! 


i«~i 


236 


INVESTIGATION  OF  NATIONAL   BANKS. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Wmhington,  D.  (\,  June  19, 1891. 


Hon.  R.  M.  Yardley, 

lieveirer,  Kei/stone  National  Banl,  Philadelphia   Pa  • 

I  notice  that  the  liability  of  the  bank  on  account  of  cleariuc^  house  certificitpQ  i 
uot  shown  in  either  one  of  these  statements.     Will  vou  .  le  ^ae  criv«  !L  !? 
of  these  items  on  each  of  <,he  dates  n.entionedf        ^       ^  ^^^  ""^  *^^  ^""^"^ 


IS 

t 


Very  respectfully, 


E.  S.  Lacky, 

Comptroller. 


IKobert  M.  Yanltev,  receiver  „r  ««^»'- K.;;^-'^«»^^No.  =2»,.    Ke,„ov.a  U,  r^  2..  third  ««,r. 


Hon.  E.  S.  Lacey, 


Philadelphia,  June  24th,  1891. 


lability  of  the 
i-yv^,,,  ates,  January 

tih^ilteH.'^'^*"^^*^'  ^'^"^""^  '^'^^'""^^  '^^'"'^  ^'"  '^^  ^•'^<^<»""*  of  clearing-house  car- 

Jan.  24,  balance  due 

Feb.  16,  balance  due...         $r>44,851.4G 

Feb.  28,  balance  due 428,516.24 

Yours  respectfully,                  374,416.46 

KOIJKRT  M.  Yardiey, 

Jieceicer, 

[Tele^jram.J 
Hon.  E.  S.  Lacey,  Phit^delphia,  June  24,  1891. 

Comptroller  Currency,  Treasury  Ihpt.,  Washington,  D.  C: 
Subpoenaed  to  produce  certificate  stock  book  and  certifinQf^a  «<•  ,»,,«-  •  i    ^ 

co..neU  iuvestigatiou  co.,n,.itt«e  th,™  uVloclf  t,;?d"ay?"rro*^«2rL'Todudr 


s 


Robert  M.  Yardley, 

Receiver. 


[Telegraphic  message.    By 


'^"'^St'I-al^™''''"^'    ^''^^Sea  to   be  collected  at  Govern. 

Treasury  Department, 

OFFICE  OF  THE  COMPTROLLER  OF  THE  CURRENCY, 

Hon.  ROBERT  M.  Yardley,  Washington,  June  34,  'l891. 

Receiver,  Keystone  National  lianh,  Philadelphia,  Pa.: 

Telegram  received.     Comptroller  does  not  object  provided  you  proceed  under  in 
structjons  contained  in  his  communication  of  June  12th.  proceed  under  in- 

E.  S.  Lacey, 

Comptroller. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Treasury 
Hon.  Robert  M.  Yardley,  frashington,  D.  C,  June  25,  1891. 

Receiver,  Keystone  National  Bunk,  Philadelphia,  Pa.: 
we^r?he^Irbv  '^!T^^  "^^-^^f*  ^»"«"»t  of  the  assets  of  the  Kevstone  National  Bank 

Very  respectfully, 

£.  S.  Lacey, 

CumptrQlUar^ 


INVESTIGATION   OF   NATIONAL   BANKS. 


237 


TRobert  M.  Yardley,  receiver  of  Keystone  National  Bank,  ^o.  2291.     Removed  to  room  21,  third  floor, 
I  post-office  building.] 

Philadelphia,  Jane  26, 1891. 

Hon.  E.  S.  Lacey,  ,..    ,  -     .        t^   ^ 

Comptroller  of  the  Currency,  }\  ashington,  JJ.  C; 

Sir-  In  reply  to  your  letter  of  June  25th,  I  beg  leave  to  report  that  bills  dis- 
counted amounting  to  $729,308.93  were  held  by  the  clearing-house  committee  at  the 
close  of  business  January  24th  to  secure  the  payment  of  clearing-house  certificates 
issued  to  the  Keystone  National  Bank. 

Yours  respectfully,  _  __   v.^^.^^r 

*^  Robert  M.  Yardley, 

Receiver. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  29, 1891. 

Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa.: 
Sir:  Enclosed  please  find  a  communication  addressed  to  Hon.  Edwin  S.  Stuart, 
mayor,  which  you  will  please  deliver  at  your  earliest  convenience. 
For  your  information  I  herewith  enclose  a  copy  of  the  same. 

Very  respectfully,  ^  ^  ^^^^^ 

Comptroller. 


[Inclosure.] 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  29,  1891. 

Hon.  Edwin  S.  Stuart, 

Mayor,  Philadelphia,  Pa.: 

Sir-  I  have  the  honor  to  inform  you  that  it  is  the  purpose  of  this  Department  to 
aid  in  every  practicable  way  the  investigation  of  the  affairs  of  the  Keystone  National 
Bank  and  the  Spring  Garden  National  Bank,  and  especially  with  a  view  to  ascer- 
taining who  have  been  guilty  of  criminal  violations  of  law,  or  who  have  aided  or 
abetted  in  the  commission  of  such  acts.  ^  ^x,  x 

To  that  end  1  am  directed  by  the  Secretary  of  the  Treasury  to  request  that  y(ui 
will  submit  to  him  the  names  of  two  suitable  persons  for  appointment  under  the 
provisions  of  the  act  approved  March  3,  1891,  which  provides  for  the  investigation 
of  violations  of  section  5209,  U.  S.  R.  S.,  which  reads  as  follows: 

''Every  president,  director,  cashier, teller,  clerk,  or  agent  of  any  association,  who 
embezzles,  abstracts,  or  willfully  misapplies  any  of  the  moneys,  funds,  or  credits  of  the 
association ;  or  who,  without  authority  from  the  directors,  issues  or  puts  in  circu- 
lation any  of  the  notes  of  the  association;  or  who,  without  such  authority,  issues  or 
puts  forth  any  certificate  of  deposit,  draws  any  order  or  bill  of  exchange,  makes  any 
acceptance,  assigns  any  note,  bond,  draft,  bill  of  exchange,  mortgage,  judgment,  or 
decree;  or  who  makes  any  false  oitry  in  any  book,  report,  or  statement  of  the  asso- 
ciation, with  intent,  in  either  cale,  to  injure  or  defraud  the  association  or  any  other 
company,  body  politic  or  cori)orate,  or  any  individual  person,  or  to  deceive  any 
officer  of  the  association,  or  any  agent  appointed  to  examine  the  affairs  of  any  such 
association;  and  every  person  who  Avith  like  intent  aids  or  abets  any  officer,  clerk, 
or  agent  in  any  violation  of  this  section,  shall  be  deemed  guilty  of  a  misdemeanor, 
^nd  shall  be  imprisoned  not  less  than  five  years  nor  more  than  ten." 

The  persons  to  be  selected  and  recommended  by  you  should  be  expert  accountants 
of  ability  and  experience,  and  of  such  reputation  as  to  courage  and  integrity  as  will 
satisfy  the  creditors  of  these  insolvent  banksthat  the  investigation  will  be  thoroughly 
and  impartially  conducted. 

Yery  respectfuUy.  ^  ^  ^^^^^_ 

Comptroller, 


ai 


238 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


239 


Treasury  Department, 
Office  ok  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  June  29,  1801. 
Mr.  W.  P.  Drew, 

National  Bank  Examinei',  PhiladeJpMa,  Fa.: 

Sir:  Inclosed  herewith  you  will  find  certified  copies  of  your  report  of  January  24, 
1891,  as  to  the  condition,  at  10  o'clock  a.  ni.  on  that  day,  of  the  Keystone  National 
Bank  of  Philadelphia,  and  of  your  lettf^r  of  tlir  same  date  referred  to  in  snid  report. 

An  investigation  of  the  affairs  of  said  hank  discloses  the  fact  that  at  the  date  of 
your  said  report  it  was  indel)tcd  on  account  of  clearing-house  certificates  in  the  sura 
of  $544,851.46,  said  indcbtt'duess  being  secured  by  pledge  of  its  notes  and  bills 
amounting  to  $729,308.93,  which  assets  were  then  held  by  the  clearing-house  com- 
mittee and  were  not  in  the  custody  of  the  bank.  You  will  observe  that  this  in- 
debtedness of  $544,851.46  is  not  stated  among  the  liabilities  of  the  bank,  nor  is  any 
mention  made  in  either  the  report  or  letter  of  this  large  indebtedness,  nor  of  the 
absence  of  so  large  a  part  of  the  assets. 

You  are  requested  to  explain  the  cause  of  these  omissions  at  your  earliest  convenience. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


Office  of  the  Mayor, 

Philadelphia,  June  30,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  JVtuhinfflon,  D.  C: 

Dkah  Sir:  1  beg  to  acknowledge  receipt  at  the  bands  of  IKuj.  Robert  M.  Yardley, 
of  your  comniunic'atiou  of  the  29th  iust.,  rtMiuesting  jne  by  direction  of  the  liouor- 
able  Secretary  of  the  Treasury,  to  sul)niit  to  him  the  names  of  two  suitable  persons 
for  appointment  under  the  provisions  of  the  act  approved  March  3,  1891,  which 
provides  for  the  investigation  of  viohitions  of  st'ction  5209,  IT.  8.  R.  S.,  and  in  reply 
to  express  my  appreciation  and  thanks  for  your  own  as  well  as  the  Secretary's  cour- 
tesy in  this  matter,  and  to  state  that  1  will  be  pleased  to  comply  with  the  request 
and  ])resent  such  nanuis  at  the  earliest  possible  moment. 
I  am,  respectfully, 

•       Edwin  S.  Stuart, 

Mayor. 


Philadelphia,  June  SO,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D,  C: 

Sir:  In  answer  to  your  letter  of  the  29th  inst.  for  explanation  of  the  omission  in 
my  preliminary  report  of  Jan'y  24,  1891,  (ui  the  Keystone  National  Bank  of  this  city, 
of  liabilities  of  $544,851.46,  clearing-house  loan  certificates,  and  of  the  further  fact 
that  no  reference  was  nuide  to  the  same  in  my  letter  transmittiiig  the  report,  I  have 
to  sttte  that  on  a  comi>arison  made  by  me  on  the  26th  inst.  of  my  retained  papers 
with  the  re]>ort  referred  to  as  recently  forwarded  by  you,  with  the  con-espondence, 
to  the  mayor  of  the  <ity,  I  was  confounded  at  the  omission,  and  I  can  account  for  it  only 
that  purposely  not  including  it  in  the  report,  I  intended  to  include  and  exi»lain  it 
in  my  letter,  which,  it  appears,  I  failed  to  do,  although  the  memoranda  for  my  letter 
contained  reference  to  the  subject.     In  my  later  reports  it  was  not  omitted. 

To  be  complete  in  statement  of  the  accounts,  the  report  of  .Jan'y  24  should  have  in- 
cluded the  amount  of  the  cei-titicates  sis  an  additional  liability,  aiid  a  corresponding 
amount  should  have  appeared  on  the  debit  side  either  in  *' stocks,  etc.,  on  hand,*^ 
or  in  a  *' deficit  account,"  or  in  both.  ^ 

The  omission  was  clearly  an  accident,  but  was  no  less  calculated  greatly  to  mislead. 

In  regard  to  the  bills  discounted  belouging  to  the  bank  and  held  for  security  for 
loan  certificates,  amounting  to  $629,308.93  ($100,000  additional  security  were  notes 
of  Mr.  McFadden,  $50,000,  and  Mr.  Haines  $50,(X)0,  not  belonging  to  the  bank),  these 
were  included  in  my  report  in  account  of  bills  discounted,  which  agrees  with  that 
account,  as  shown  on  the  general  sheet  of  the  bank,  less  $225,000  i>laced  in  the  report 
in  banking-house  account. 

As  stated  in  my  letter  of  transmittal,  the  n^port  was  informal  and  inconii)lete  in 
many  rt^spects,  owing  to  the  fact  that  nmny  of  the  accounts  were  then,  an<l  for  some 
time  afterwards,  undergoing  verification  j  but,  notwithstanding  these  embarrass- 


ments, the  omission  referred  to  should  not  have  occurred,  and  would  not  have  oc- 
curred except  by  accident,  as  stated.  I  need  not  add  how  greatly  I  regret  the  inad- 
vertence. 

Very  respectfully, 
J       ^  ^'  .  w.  P.  Drew, 

Nat.  Bank  Examiner. 

p.  s. I  prepared  a  letter  to  you  on  thr  subject  on  the  26th,  but  did  not  mail  it,  as 

I  then  expected  to  see  you  personally  in  Washington,  when  I  could  explain  same  in 
fuU. 


fRobert  M.  Yardley,  receiver  of  Keystone  National  Bank,  removed  to  No.  2291,  room  21,  third  floor, 

Post-office  building.] 

Philadelphia,  July  1st,  1891. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

Sir:  The  city  treasurer  of  Philadelphia  has  sent  me  the  enclosed  statement  of 
transactions  with  the  Keystone  National  Bank  on  March  19th,  the  day  preceding 
the  suspension. 

The  items  $318.79  and  $.52,369.77  were  received  by  the  bank  late  in  the  afternoon 
of  March  19th,  but  they  did  not  go  into  the  work  of  that  day.     Repayment  in  full  is 

asked. 
The  question  which  is  here  involved  is  raised  by  other  creditors,  who  made  their 

deposits  upon  the  same  dsiy. 
I  respectfully  submit  the  matter  for  instructions. 
Yours,  respectfully, 

Robert  M.  Yardley, 

Beceiver. 

Office  of  the  City  Treasurer,  City  Hall, 

rhiladelphia,  June  27th,  1891. 

Keystone  National  Bank. 

Deposit  March  19, 1891 - $318.79 

Receipts  sent  to  the  Keystone  Bank  f»n  the  afternoon  of  March 

19th,  for  which  credit  was  given  March  20th 52, 369.  77 

$52, 688. 56 

Amount  of  checks  on  city  banks  which  were  returned  on  the  Keystone 

books  March  19th 23,607.23 

Amount  not  entered  on  bank's  book,  and  therefore  not  an  asset  of  the  bank .  29, 081. 33 

Made  up  a«  follows: 

Keystone  National  Bank  ck 10, 000. 00 

Drexel  &  Co.  ck 941. 13 

Cash  (notes,  gold,  and  silver) - 18, 140. 20 

Amt.  to  he  returned  to  the  city  treas 29, 081. 33 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  July  2,  1891, 
Mr.  W.  P.  Drew, 

National  Bank  Examiner,  Fhiladelphia,  Pa.: 

Sir:  I  am  to-day  in  receipt  of  your  letter  of  the  30th  ultimo.,  in  which  you  state 
that  your  failure  to  include  among  the  liabilities  of  the  Keystone  National  Bank,  in 
your  preliminary  report  of  January  24,  1891,  the  sum  of  $.544,851.46,  for  which  amount 
it  was  then  indebted,  on  account  of  clearing-house  certificates,  was  due  to  an  acci- 
dent, as  you  intended  to  have  informed  mo  fully  in  regard  to  this  liability,  either  in 
the  report  or  letter  of  transmittal.  I  have  placed  your  communication,  together 
with  all  other  facts  bearing  upon  the  transaction,  before  the  Secr(?tary  of  the  Treas- 
ury, and  tile  same  havt^  had  very  full  and  careful  consideration. 

As  a  result,  the  conclusion  was  reached  that  so  important  an  omission,  after  fifteen 


■^? 


m 


240 


INVESTIGATION   OF   NATIONAL    BANKS. 


i 


days'  investigation  of  tho  bank,  is  not  consistent  with  the  contidence  which  must 
necessarily  be  reposed  by  the  Department  in  the  reports  of  those  appointed  to  make 
examinations  of  national  banks. 

By  direction  of  the  Secretary  I  have  therefore  to  request  that  you  forward  to  this 
office  your  resignation  as  an  examiner  of  national  banks. 

I  cannot  close  this  communication  without  assuring  you  of  my  sincere  regret  that 
anything  shouhl  have  occurred  which  would  render  necessary  the  severing  of  your 
official  relations  with  this  Bureau. 
Very  respectfully, 

E.  S.  Lacky. 

Comptroller. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Comp.  Currency  J  Washn.: 

Please  see  me  at  your  office  three  o'clock. 


Phil.,  July  S,  1S9L 


W.  P.  Drew. 


[Telegram.] 

Washington,  July  S,  1891. 
W.  P.  Drew, 

National  Bank  Examiner,  3939  Chestnut  Street,  Philadelphia,  Pa.  : 
Will  be  at  the  office  at  three  to-day  and  will  see  you. 

E.  S.  Lacey, 

Comptroller. 


By  the  Chairman  : 

Q.  Did  ycm  have  an  interview  w  ith  Mr.  Drew  according  to  bis  sug- 
gestion in  his  hotter  ofJnly  2? — A.  Yen,  sir;  I  did. 

Q.  Please  state  what  occurred  at  that  interview. — A.  The  conversa- 
tion was  largely  with  reference  to  the  omission  of  the  clearing-house 
certificates  in  his  rei>ort;  and  he  reiterated  at  considerable  length  the 
statement  contained  in  his  letter  to  me  of  June  30,  in  which  he  stated 
it  was  purely  an  accident,  and  that  he  could  not  account  for  it  in  any- 
way, except  that  he  had  omitted  it  by  accident.  I  informed  him  tliat 
the  matter  had  been  duly  considered  by  the  Secretary  of  the  Treasury, 
and  that  the  Secretary  had  directed  me  to  ask  for  his  resignation ;  that 
I  certainly  could  not  recall  that  without  the  Secretary  being  consulted. 
He  expressed  a  desire  to  meet  the  Secretary,  whereupon  I  went  to  the 
Secretary,  and  he  consented  to  meet  Mr.  Drew.  We  three  went  to  tho 
Secretary  and  we  dis(!ussed  the  (piestion  at  some  length.  The  Secre- 
tary, after  hearing  all  Mr.  Drew  had  to  say  in  the  matter,  stated  that 
under  the  circumstances  he  could  not  modify  his  views  as  exi>ressed  in 
the  letter  of  July  2. 

Q.  As  expressed  in  yowr  letter  of  July  2? — A.  Yesj  in  which  I  re- 
quested Mr.  Drew's  resignation.  After  the  interview  we  returned  to 
my  oftice  and  he  took  the  letter  of  July  2.  No  new  matter  was  intro- 
duced into  the  conversation  which  would  give  any  other  reasons  for  the 
omission  than  those  indicated  in  his  letter  of  June  30  to  me. 

Q.  Did  he  resign? — A.  We  will  come  to  that  later. 

Q.  He  did  not  resign  at  that  time — ^he  neither  resigned  nor  refused 
to  resign  at  that  timef — A.  No,  sir. 


} 


INVESTIGATION   OF   NATIONAL   BANKS. 

Witness  had  read  telegrams  and  letters  as  follows: 


241 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency 
Hon.  R.  M.  Yardley,  Washington,  D.  C,  July  S,  1891. 

Heccircr  Keystone  National  Bank,  Philadelphia^  Pa.: 
Sir:  The  mayor  of  Philadelphia  has  suggested  as  proper  persons  for  appointment 
to  inve8t.<^.t<'  violations  of  section  5209,  as  disclosed  by  the  affairs  of  yoiir  trnst  the 
names  ot  xMr.  Taylor  Faunce,  Koom  13,  No.  308  Walnut  street    PhiLdelT^hi^   j,nH 
Lawrence  E.  Brown,  No.  934  Drexel  Building  '  i-nuadelphia,  and 

Is  there,  any  reason  to  believe  that  the  appointment  of  either  of  these  gentlemen 
will  place  in  jeopardy  the  interest  of  any  creditor  of  your  trust?  S^nii«men 

Keply  by  wire,  so  that  it  will  reach  me  by  9  o'clock  Monday  mominff,  without 
nientionm^r  names,  mdicatmg  the  gentlemen  as  numbers  1  and  2  wimour 

Very  respectfully, 

E.  S.  Lacey. 

Comptroller, 

[Address  reply  to  "Comptroller  of  the  Currency,"  Washington,  D.  C] 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency 
Hon.  Robert  M.  Yardley,  Washington,  D.  C.  July  3,  mi. 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa.: 
Sir:  Your  letter  of  the  Ist  instant  is  received,  enclosing  a  statement  of  trans- 

As  at  present  advised,  the  Comptroller  is  of  the  opinion  that  the  deposits  men 
^Z'Jll  r^  those  indicated  as  having  been  made  by  other  creditors  cSmbe™on: 
nfW^  as  spe^al  deposits,  or  protected  so  as  to  place  the  other  depositor;  in  any 
other  position  than  that  occupied  bv  general  creditors  "sn^rs  in  any 

rhere  seems  to  be  some  misunderstanding  as  to  the  iaw  in  the  matter  of  deposits 
made  in  a  national  bank  just  prior  to  suspension.  In  some  cases  allegations  of  \va  id 
have  been  sustained  by  the  courts,  but  the  Keystone  National  Bank  warclose  1  v 
?h«  h..l*^/  Comptroller  of  the  Currency  without  previous  notice  to  the  officers  df 
t'h:  bLt VX'n wily ."^""^^  ''  "°^  '"*^"*^^^  ^^  *^«  ^-*  -'  *^^  management  to  dost 
Very  respectiully, 

E.  S.  Lacey, 

Comptroller. 


Hon.  E.  8.  Lacey,  Philadelphia,  July  6,  1891. 

Comptroller  of  the  Currency,  Washington,  D.  C: 
Sir:  As  you  will  remember,  I  took  from  you  in  vour  office  in  WtJHhincrtni,   fi.« 
afternoon  of  the^3rd  inst.,  your  letter  of  the  2nd  inst^,Tformfnc.  me  tta^^^^ 
eou«ideration,  the  SecTetary  of  the  Treasury  had  concluded  to  rSq  fc^t   throS^voi 
mv  ^^!",?°^^*^«"  a«  National  Bank  Examiner,  on  account  of  my  tkilur^  to   nc"l   c?e   n 
ny  preliminary  report  on  the  -Keystone  National  Bank"  of  this  city  of  the  24th  of 

lod^tJ^^i^t^i::^:^:  ^^-^  of .544,851.46,  on  account  o/ci^lt^:^^^^^^^^^^^ 

ih^"!!^^  ^®**^^  ^^^^l^  *^  ^^^  *"^^t  as  stated  in  my  letter  to  you  of  the  .30th  ultimo  that 
waseiXr.;H''^'''''^  *"  ^T  r'''^yf^^-^'^^^-^tr<^HLaaU.^^^^^^ 
was  m?W?      I  1^^  i"«moran«la  tor  my  letter  transmitting  the  report  of  .Jan'v  24  but 
S?  I  d^Jo^^^^^^  I  was  totally  unaware  of  until,ln  .  „ne 

warded  bvvn.  H    l^  o»"itted  it  by  comparing  the  report  of  .Jan'y  24,  as  for- 

Sm  leto  Llto?.]  -^  mayor  of  this  city.     Inasmuch  as  the  report  wasnec'essajily 
ren    11  i,    'p  ,   ^"""^     \"'^  Jf  "*''''  *"*^  *^^^  omission  a  clear  oversight,  and  snbsernient 
ce?t  H^.,       *e^ru«ry  did  fully  show  the  liability  on  account  of  clearing-ho u^^^^^^ 
W    f     J  I?"^  ^^*^^^.  *^"^^  **'^'««  ^*«  t^ken  (March  20)  in  closin-  tl  e  ba  k   1  had 
tee W. ftn  •  *^«"«i^«^^*r?  r^Y'  ^^^"«^  '^^  unintentional  ainl^cciden  ai  oi  ds^ 

-As  r^suU  th^^  ^^  '^""T  ^iJ""  ^'^"^  ^^"^^  «^  2"^1  "»«*•  y«"  «tate  hat 

oino        "^"""^^'^^^^^  ^^^«  reached  that  so  important  an  omissioi,  after  fifteen 
o4v2 16 


) 


'41 


242 


INVESTIGATION   OF   NATIONAL    BANKS. 


bo..8.  l....n  ccrHUeates  <'"»?ta°^i°S  ,,''g»i"te  bank  .%^^^^^  »"«  re.iui.cd 

wilhw  ,,../ kuowlclKe  ever  since  the  run  »"  ™« J'^^",^ .\'{'-'*v!^         ftom  the  clearing 
no  partknlar  iuvctigation,  as  *!'«''»  7''^;7«*,^*i'^24alon^^^^^ 

and  accidental  oversight. 

Very  respectfully,  yours,  -  W.  P.  Drew. 


July  6, 1891. 

Hon.  E.  S.  Lacey,  y^    t     ,       n  n  * 

Comptroller  of  Cunemy,  Jraslungtou,  U.O,.  ,     „,.     ,     ^  ♦«  «   ..f 

DFAK  Sir-  On  paitiuj?  with  you  on  the  afternoon  of  the  3d  m^.  at  your  othce   at 

**I  iTope  I  may  always  retain  the  honor  of  your  good  opinion  personally. 

Very  truly  yours,  '  y^   p   d^kw. 


Office  ok 


Trkasury  Department, 
THE  Comptroller  of  the  Currency, 

Washington,  D.  C,  July  8,  1801, 

Mr.  W.  P.  Drew,  .  „.,  j  ,  ,.     r>„  . 

No.  S939  Chestnut  Street  Philadelphia,  Pa.. 

Sir:  Your  favor  of  the  6th  instant  came  to  hand  yesterday,  in  ^^'i^^^y^'^nd  "th« 
if  in  view  of  the  facts  stated  by  you,  your  case  might  not  be  reconsidered,  and  the 

'TtXr^^'^^^^^^^^^^  ^-  ^«^"   laid  ;>efore. the 

Secreta?  ^of  th^  Treasury,  and  he  directs  me  to  say  that,  in  view  ot  the  senous 
nXre  of  the  omission  acknowledged  by  you  as  having  occurred  in  your  report  of 
Sanuarv  2I  1891,^h^  not  see  his  way'dear  to  modify  his  former  decision  in  the 

matter,  which  was  <M3mmunicated  to  you  in  my  letter  of  the  2d  instant. 

Very  respectfully,  ^    ^    ^acev, 

Comptroller. 


U 


INVESTIGATION   OF   NATIONAL   BANKS. 

[Address  reply  to  "ComptroUer  of  the  Currency,"  Washington,  D.  C] 


243 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  July  8,  ^1891. 
Hon.  Robert  M.  Yardley, 

Beceiver,  Keystone  National  Bank,  Philadelphia,  Pa.: 

Sir  :  Upon  a  careful  estimate  of  the  value  of  the  assets  of  the  Keystone  National 
Bank  based  upon  your  first  report  and  information  from  other  sources,  I  find  that 
It  will  be  necessary  to  levy  an  assessment  upon  the  shareholders  to  the  full  extent  of 
their  liability  under  the  provisions  of  sections  5151  and  5234  of  the  Revised  Statutes 
Sm  ori)  i7Fh^T^  7""  *^-^  estimate  that  there  will  be  a  deficiency  of  more  tlian 
$;)00,000  m  the  amount  required  to  pay  the  creditors  in  full 

I  therefore  enclose  herewith  a  formal  order  of  assessment  and  a  form  of  notice  to 
the  shareholders  Please  have  the  order  and  notice  printed  in  circular  form,  Ind 
forward  a  copy  to  each  shareholder  by  registered  mail.  A  fow  samples  of  the  circn 
ar  should  be  forwarded  for  the  files  here.  The  order  of  assessment  may  be  pub- 
lished once  a  week  for  four  weeks  in  a  newspaper  published  in  Philadelphia. 
^t\Z  T  ^"*^«"'^^?  *«  giv«  any  shareholder  thirty  days'  extension  who  pays  one-half 
w,.iff!  ^";V.""*,"^  his  assessment  on  or  before  August  8th  next  and  who  gives  you  a 
twXr  if  ^n?'  satisfactorily  guaranteed,  to  pay  the  remainder  withinUirtydavs 
of  the  frn;/  T]?«  wi?f 'r"""  «^«h  extension  will  not  be  detrimental  to  the  interests 
of  the  trust  This  will  leave  you  free  to  commence  suit  after  August  8th  against 
any  shareholder  who  omits  payment.  ^  «tfe«tmbi. 

Defened  payments  will  bear  interest  at  legal  rate  from  August  8,  1891 
Very  respectfully,  &       "? 

E.  S.  Lacey, 

Comptroll^. 


[Telegram.] 


Hon.  E.  S.  Lacey, 

Conip'r,  Washn.: 
Is  my  letter  of  the  sixth  to  be  considered  f 


Philadelphia,  ,nay  9, 1891, 


W.  P.  Drew. 


[Telegram.] 


W.  P.  Drew, 

3939  Chestnut  Street,  Phnadelphia,  Pa. : 
Reply  to  your  letter  sixth  was  mailed  to-day. 


Washington,  July  9, 1891. 


E.  S.  Lacey, 

Comptroller. 


Treasury  Departtvient, 
Office  of  the  Comptroller  of  the  Currency, 
Hon.  R.  M.  Yardley,  Washington,  D.  C,  July  9, 1891. 

Beveiver,  Keystone  National  Bank,  Philadelphia,  Pa.: 
h^i'lLVv   Secretary  of  the  Treasury  has  appohited  Mess.  Taylor  Faunce  and 
vesT^l  mnh-  r^"  **"  ';'"'*  -V'"^  ^''''^  ^«  expert  accountants  for  ihe  purpose  of  in 
Yoifwi^^^^^^^^  of  section  3209,  Revised  Statutes  of  the  United  States 

^^^i^^r^^^.^^^  '-  ^-^  P--'  to  the  end  thatthe 

Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 


m- 


'■^l 


:«>l 


il 


244 


INVESTIGATION   OK   NATIONAL   BAHK8. 


P 


!i 


July  10,  1891. 

Hon.  K.  S.  Laoey, 

romptroller  of  the  Currency,  ^Vmhington,  D.  V,. 
8iR-  Your  letter  of  the  8th  inst.  was  received  hy  me  this  mommg,  10th.     1  win 

^'nlvTl^H^rr^^^^^^      Knox  to-day  at  Spring  Garden  Nat.  Bank  with  reference  to 
bis  %8.  in  that  bank. 

Very  respectfully,  ^    p    drkw. 


Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington t  D.  C,  July  10, 1891. 

Mr.  W.P.Drew,  „..,.,,..     i> 

S939  Chestnut  Street,  Philadelphta,  Pa.: 
nv AR  Siu  •  1  im  in  receipt  of  your  favor  of  the  6th  instant  asking  for  an  unofocial 

««rv  ce  when  I  entered  upon  the  duties  of  Comptroller  on  May  1, 1889,  and  th.it  you 


Philadelphia,  July  10, 1891. 


Hon.  E.  S.  Lacey,  m    ,  •     ,.      n  r  . 

Comptroller  of  the  Currency,   nashinyton,  D.  C. 


«.tt-  T  have  the  honor  to  ackuowledse  the  receipt  this  day  oi  your  letter  ol  the 
h  in»t'  and?  ii,  accordance  with  the  directions  of  the  Secretary  of  the  Treasury,  to 


tenderiiiy"re8ig'nation  as  National  Bank  Examiner. 
Very  respectfully. 


W.  P.  Drew. 


IRobeit  M.  Tardley.  receiver  of  Key«t<me  National^^k.  1326  and  1328  Chestnut  street,  opposite  the 

Phiij^delphia,  July  10,  1891. 

Hon.  Edward  S.  Lacey, 

Comptrolltr  of  the  Currency:  r  ,  +i,«  «„r 

SiK-  1  be-  to  introduce  my  assistant,  Mr.  Wm.  C.  Ryan,  who  comes  for  the  pnr- 

pos^of  making  an  examination  of  the  tirst  report  tiled  by  nie  ««veral  days  ago,  and 

«f  r.  multin"-  YOU  in  reference  to  some  matters  in  connection  with  the  trust,     lie 

kLnnough^rgiv^  him  such  assistance  and  attention  as  you  tind  his  errand  de- 

mands. 

Yours,  respectfully,  ^^^^^^^  ^    Yardley, 

Receiver, 


Office  of  United  States  Attorney, 
Eastern  District  of  Pennsylvania, 

Philadelphia,  July  10, 1891. 

Hon.  Edward  S.  Lacey,  ^  -.    ,       n  ^ 

Comptroller  of  the  Currency,  Washington,  D.  C.  .   ^   ,  .    .+i,« 

Sir:  I  noticed  by  this  morning's  papers  that  the  tw^^^^t'^^^rnre  Kev^^^^^^^ 
Secretary  of  the  Treasury  to  make  an  examination  into  the  books  of  the  Keystone 
and  Spfing  Garden  National  Hanks  have  been  instructed  to  report  to  the  mayor  ot 
this  city  as  to  the  result  of  their  examination. 


} 


INVESTIGATION    OF   NATIONAL    BANKS. 


245 


In  view  of  the  fact  that  the  U.  S.  District  Court  will  hold  a  term  in  this  city  on 
the  17thof  August  next,  at  which  comi)laints  of  a  criminal  nature  can  be  tried,  I  would 
respectfully  suggest  that  the  experts  be  further  instructed  by  you  or  the  Secretarv  of  the 
TicasnrytK>c(mnnunicatetomesuch  facts  as  indicate  criminal  complicity  on  the  part 
(»f  any  of  the  officers  or  directors  of  either  of  said  banks,  or  anything  that  indicates 
that  the  criminal  statutes  of  the  United  States  have  been  violated.  I  expect  to  sub- 
mit hills  of  indirtmont  to  the  grand  Jury  at  the  August  term  against  F.  W.  Kenneiiy 
ami  Harry  Kennedy,  who  held  the  position  of  president  and  cashier  respectively  of 
the  Spring  (xarden  National  Bank,  and  also  against  Gideon  W.  Marsh,  late  president 
of  the  Keystone  National  Bank  (now  a  fugitive),  and  against  Charles  Lawrence,  late 
assistant  cashier  of  said  bank,  and  I  should  like  to  feel  at  liberty  to  call  for  assist- 
ance on  the  part  of  these  experts  to  furnish  me  with  such  additional  evidence  as  they 
may  obtain  as  to  the  criminal  conduct  of  either  of  the  parties  mentioned. 
Yours  very  respectfully, 

John  R.  Read, 

U,  S.  Attorney. 


[Address  reply  to  "  Comptroller  of  the  Currency,"  Washington,  D.  C] 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  D.  C,  July  11,  1891. 
Mr.  W.  P.  Drew, 

39S9  Cliestnut  street,  Philadelphia,  Pa.: 

Sir  :  I  am  to-day  in  receipt  of  your  letter  of  the  10th  instant  tendering  your  res- 
ignation as  National  Bank  Examiner,  which  is  hereby  accepted. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 

This  closes  the  correspoudence  up  to  the  final  resignation  of  Mr. 
Drew. 

Q.  Have  you  two  reports,  the  one  made  by  Mr.  Drew  as  examiner  of 
the  assets  of  the  bank  as  he  found  them  at  the  time  of  the  closing  of 
the  bank,  and  one  being  a  report  of  the  receiver  of  the  condition  of  the 
assets  when  he  took  possession? 

By  Mr.  Walker  : 

Q.  What  date  was  it  that  he  made  the  omission? — A.  That  was  the 
first  report  made  by  Mr.  Drew,  dated  January  24,  1891. 

(^  What  is  the  date  of  the  next  report!— A.  The  next  report  was 
dated  February  1(>,  1891. 

Q.  When  did  the  bank  fail?— A.  It  was  closed  March  19, 1891,  The 
final  report  was  the  one  dated  February  28,  which  reached  me  about 
the  2d  of  March. 

Qi  What  action  did  you  take  upon  the  report  when  it  was  first  com- 
municated to  you?— A.  I  made  an  assessment  upon  the  capital  stock. 

Q.  Immediately  ?— A.  Yes,  sir;  but  let  me  call  attention  to  thi«  fa(^t: 
The  report  of  January  24,  1891,  did  not  state  the  clearing-house  liabili- 
ties of  $544,851.40.  It  valued  the  Sea  Girt  property  at  three  hundred 
and  fifty  five  thousand  and  some  odd  dollars.  The  report  of  February 
16  stated  the  liabilities  on  clearing-house  certificates  at  a  reduced  sum, 
but  it  stated  the  Sea  Girt  property  as  valued  at  $700,000  instead  of 
$35;>,000,  which  increased  the  resources  as  well  as  the  liabilities. 

Q.  What  did  the  Sea  Girt  property  provetobe  worth?— A.  Nothing 
lias  been  realized  from  it;  but  a  recent  valuation  upon  it  shows  that  in 
any  event  it  is  not  worth  over  $372,000,  if  you  include  some  consider- 


1    / 


246 


INVESTIGATION    OF   NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


247 


11 


II. 


able  i)(»rtioii  of  the  stock  pledged  to  Bardsley  to  secure  the  city  treas- 
urer's account. 

By  the  ('H AIRMAN  t 

Q    What  I  want  to  get  at  is  the  statement  that  shows  the  condition 

of  the  assets  of  the  bank  on  the  day  it  ch>sed— the  UHli  of  March.— A. 

This  sliows  that.    This  shows  the  vaUie  of  each  particular  asset  ot  the 

bank  on  the  I9th  of  March,  up  to  its  receipt  by  Yardley  when  he  took 

charge 

(J^l  want  to  see  what  change  there  was?— A.  This  shows  the  con- 
dition of  the  bank  at  the  time  it  closed.  ^i    ^  v.  i. 

Q  The  correspondence  shows,  and  my  sense  teaches  me,  that  between 
the 'date  wlien  Drew  closed  the  bank  and  the  time  the  receiver  took 
charire  there  was  a  change  in  the  condition  of  these  assets,  and  I  want 
t4>  know  what  it  was.— A.  The  rules  of  the  otitice  require  the  receiver  to 
show  the  <M)ndition  w  hen  the  examiner  took  charge,  and  not  when  the 
receiver  took  charge.  The  bills  are  all  put  on  here  without  respect  t6 
the  fact  of  their  collection.  ,.  ^     ,  .. 

Q  Is  there  no  statement  made  to  the  oftice  which  shows  the  con- 
dition of  the  bank  in  that  intervaU— A.  This  shows  every  lial>ility  to 
and  from  the  bank  on  the  date  of  its  closing.  Everything  collected  in 
the  meantime  is  undoubtedly  shown  on  this  report. 

Q.  I  am  asking  for  the  schedule  (U' the  list;  Drew  states  that  he  sent 

Q  Mr  Drew  states  that  you  will  find  the  memorandum  ami  final 
report  at  such  and  such  a  tinie.  There  must  be  siuh  a  paper  unless  I 
have  misapprehemkMl  the  rorrespondence.  lie  repeatedly  referred  in 
this  correspondence  to  the  fact  that  he  was  engaged  in  checking  his 
reports— A.  The  examiner,  when  he  turns  over  to  the  receiver  the 
assets  of  the  bank,  is  required  to  make  an  explicit  schedule  of  every 
kind  of  assets  and  liabilities,  and  to  pass  them  over  to  the  receiver  and 
^et  the  receipt  of  the  receiver  for  every  particular  asset  that  came  into 
his  hand  when  he  took  ])ossession  of  the  bank.  And  as  1  understand 
it  this  report  submitted  here  is  the  report,  except  the  balances,  as 
shown  in  the  statements,  showing  the  loans  and  discounts,  receipts, 
etc. 

By  Mr.  Walker  : 

Q  How  long  did  the  examiner  practically  have -possession  before  he 
turned  the  bank  over  to  the  receiver f— A.  From  March  20  to  May  8. 

Q  At  the  time  he  took  possession  did  he  make  as  careful  a  schedule 
as  he  did  at  the  time  he  turned  the  bank  over  to  the  receiver;  or  did 
he  simply  keep  the  business  running  along,  keeping  the  accounts  aiid 
the  daily  transactions?— A.  He  proceeded  to  make  collections,  and  1 
sup])ose  they  are  upon  the  books  now  in  the  hands  of  the  receiver, 
t'iving  the  records  of  his  transactions  during  the  time;  but  the  schedule 
which  the  receiver  makes,  and  which  the  receiver  receipts  for,  shows 
the  condition  of  the  bank  at  the  date  when  the  examiner  closed  the 

bank.  ,,.,..    ^  i.  i     i 

Q    When  the  examiner  closed  the  bank— that  is  to  say,  it  goes  ba<-k 

of  tiiatand  shows  all  transactions  since  that  time?— A.  The  books  of 

the  examiner  will  show  that,  but  the  records  of  our  office  do  not.     \N  e 

do  not  keep  the  transactions  of  every  trust  in  our  oftice. 

Q.  But  while  there  is  no  full  detailed  statement  of  the  condition  ot 

the  bank  at  the  time  the  examiner  displaced  the  officers  of  the  bank,  the 

accounts  are  kept  along,  and  they  show  when  the  receiver  *takes  it.— A. 


; 


The  receipt  of  the  receiver  shows  the  condition  at  the  time  the  bank 
was  closed  by  the  examiner. 

Q.  The  account  that  you  handed  to  the  chairman,  as  I  understand  it 
contains  practically  both  the  accounts  which  he  asks  for?— A.  It  show 
every  item  of  assets  and  liabilities  that  was  in  it  when  the  examiner 
took  charge. 

Q.  ThtHi  that  account  shows  both  the  statement  of  condition  when 
the  examiner  took  charge  and  when  the  receiver  took  charge? 

By  the  Chairman  : 

Q.  That  is  the  receiver's  account.  It  is  not  the  schedule  called  for  in 
the  letter? — A.  It  is,  as  I  understand  it. 

Q.  It  is  the  receiver's  report  and  not  the  schedule  of  the  examiner. 
I'he  r<'ceiver  is  required  to  duplicate  this;  but,  in  order  that  we  should 
know,  the  schedule  as  originally  prepared  by  the  examiner  ought  to  be 
here. 

By  Mr.  Wike  : 

Q.  It  seems  very  clear  to  my  mind  that  there  ought  to  be  something 
to  show  the  condition  of  the  bank  when  the  examiner  closed  it,  and 
took  charge  of  its  affiiirs.— A.  That  is  precisely  what  this  paper  shows. 

Q.  \ou  may  be  able  to  figure  it  out  from  this.— A.  Excuse  me,  this 
shows  exactly  the  items,  every  note,  overdraft,  balances  due,  and  every 
particular  item  that  belonged  to  that  bank  when  the  examiner  closed 
it,  both  the  assets  and  liabilities,  and  the  receiver  has  receipted  for 
every  single  one  of  those  items. 

Q.  It  does  it,  because  it  shows  the  result!— A.  It  shows  the  identical 
items. 

Q.  Then  it  proceeds  further  to  show  what  had  become  of  them  since 
that  time?— A.  Yes,  sir;  that  is  precisely  what  this  shows— every  item 
of  assets  and  liabilities  at  the  time  the  bank  closed,  and  up  to  the  time 
the  receiver  took  charge. 

By  Mr.  Walkeb: 

Q.  This  is  a  complete  answer  to  the  question.  It  shows  every  trans- 
action between  the  date  the  examiner  took  the  bank,  up  to  the  date 
when  the  receiver  was  appointed,  and  took  possession. 

By  the  Chairman: 

Q.  This  examiner  was  required  at  the  time  when  he  took  possession 
to  make  an  examination  and  investigation  as  well  as  a  schedule  of  the 
bank's  affairs.  Is  not  that  one  of  the  requirements?— A.  That  is  the 
customary  way;  but,  as  you  see,  the  letter  says  he  had  not  made  it  up 
to  the  time  when  the  receiver  was  appointed. 

Q.  It  shows  that  it  had  not  been  transmitted  to  you?— A.  We  did 
not  receive  it. 

Q.  So  that  what  we  have  got  here  in  this  report  is  simply  the  state- 
ment ot  what  Mr.  Drew  told  the  receiver  at  the  expiration  of  neailv 
two  months'  possession  of  the  assets  of  the  bank?  That  is  what  w^'e 
Have  got,  and  nothing  else?— A.  This  report,  as  I  understand  it,  shows 
not  only  what  Mr.  Yardley  receipted  for,  but  what  Drew  reports  he  had 
on  hand  March  20. 

o   S*^^  ^'^  *^^  report  which  he  makes  in  May?— A.  Certainly. 

if  V\  hat  I  want  is  the  inventory  or  schedule  of  assets  and  liabilities 
wnicu  he  niust  have  made  in  this  investigation  in  the  montli  of  March. 
A.  It  IS  evident,  if  he  did  make  it,  that  he  did  not  transmit  it,  because 
he  was  asked  to  forward  it. 


Mt 


248 


INVESTIGATION   OF   NATIONAL   BANKS. 


(^  Do  you  say  tliat  lie  never  did  forward  it?— A.  I  say,  so  far  as  I 
know,  tliesc  are  all  tlie  papers  that  have  been  forwarded. 

Q.  What  1  want  to  know  is  whether  the  schedules  were  made,  and  if 
so,  whether  they  were  filed  in  your  office? — A.  You  want  a  statement 
showing  the  assets  that  came  into  his  hands.  If  there  was  any  report 
of  the  assets  made  by  the  examiner,  I  do  not  know  it.  Whatever  there 
is  is  in  the  archives  of  the  Office,  and  certainly  are  at  the  disposal  of 
the  Committee. 

Q,  The  third  requirement  was  that  we  should  also  want  copies  duly 
verified  of  the  reports  of  the  bank  officers  and  examiner  from  the  first 
of  January,  1887,  down  to  and  including  the  period  when  the  bank 
examiner  was  in  the  custody  of  the  bank,  and  up  to  and  until  the  re- 
ceiver took  possession  of  it  and  its  assets.  The  missing  one  is  the  one 
covered  by  that  period?— A.  If  there  is  any  such  report.  Of  course, 
that,  I  suppose,  would  mean  the  reports  of  the  examiners.  The  schedule 
of  the  assets  may  be  in  the  archives.  I  addressed  a  letter  to  Mr.  Stod- 
dard requiring  him  to  produce  these  papers.  Up  to  the  11th  of  May 
there  had  been  no  schedule  sent  to  the  office. 

Q,  This  document  which  you  do  produce  is  the  first  report  of  the 
rciceiver  with  the  schedule  attached^  and  this  schedule  "  C  "  is  part  of 
that?— A.  It  is  a  list  of  depositors  m  Philadelphia,  and  the  amounts 
due  each,  as  shown  by  the  ledger  on  March  20, 1891,  the  date  of  suspen- 
sion. The  list  of  assets  covers  each  particular  item  that  was  due  to  the 
bank,  and  gives  a  full  description. 

Exhibit  1  of  May  5, 1892. 
RECAPITULATION-STOCK  CALLED  FOB- 


Stubs  show. 

Ledger  shows. 

907 

969 

1,039 

1,089 

1,176 

404 

1,602 

1,551 

708 

1,573 

186 

286 

1,241 

1,241  Haines. 

1,253 

1,253  Yard. 

2,098 

2,098  Not  posted. 

1,414 

1,414     " 

Lucas         800 

800  Lucas. 

"            175 

12,599 

12,678 

-♦ 


INVESTIGATION   OF   NATIONAL   BANKS. 


249 


) 


Names  of  shareholders  of  the  Keystone  National  Bank  of  Philadelphia,  as  they  appear 

upon  the  stock  ledger f  March  20,  t891. 


Arthur,  Robert 

Artlmr,  Fannie  R 

Allen,  Mrs.  M.  P 

Anderson.  John  W.* 

Agnew,  V. 

Barr,  William  I 

licll,  Howard  &  Co 

liringhiirst,  Mrs.  A.F.*. 


Bastiau,  U.S. 


Bradley,  H 

Brintzinghofter,  C* 

lieattv.  M.A 

Bender,  W.  A 

Do 

Bums,  B.  C 

Brooks,  W.H 

Bodine,  D.  W 

Brown,  I.  A.  S 

Do 

Brown,  Geo 

Do 

Do* 

Bncker,  A.  W 

Do 

Brown,  Mrs.  Rachel  A 

Buck,  Daniel 

Do 

Do* 

Buchanan,  R.  R 

Canning,  Letitia 

Do 

Cassady,  John  H 

tio 

Cassadv,  Jno.  H 

Do 

Crump,  H.  J 

Crump,  J  ohn 

Crump,  Geo.  R.* 

Chapin,  Sarah  C 

Do 

Creth,  JohnE.* 

Creth,  Caroline 

Cooper,  Mrs.  D.  E 

Coxe,  WilliaiuP 

Do 

Do 

Chambers,  Mrs.  M.  I 

Codbnrv.  Richd.  F 

Do 

Canim,  Laura  M 

Davis,  Miss  Mary  A 

Do 

Do 

Dreka,  Louis  * 

Do 

Dahia,  Geo.  E.  (see  certif.No.  819,  transf.). 

Dorons,  A.  C 

Dorons,  Emma 

Excelsior  Divis.  Sons  of  T 

Do 

Fields,  Geo.  F 

Gabel,.ir.,  Geo.  T 

Goforth,  Mary  Ann 

Graham,  Mrs.  S.  C 

Do 

Green,  Henry  W.* , 

Gans,  E.  M 

Do 

Greenwell,  John 

Garrett,  Walter 

G  rev  son,  Joseph 

Do 

Groves,  estat*  of  William 

Do 

Goble,  B 

Do 


Transferred. 


Certif. 
numher. 


214 
926 

855 


Shares 
on  stub. 


10 
21 
10 


443 
897 
903 


937 
943 
3.52 
585 
724 


830 
467 
689 
769 
786 
809 
853 
153 
431 


243 
661 


256 
471 

583 
614 
G6G 
899 
879 
828 
622 
814 
878 


407 


787 
940 
891 
369 
482 
773 
483 
673 
7.S5 
837 


50 

5 

10 


1 

5 

10 

10 

2 

10 

40 

20 

10 

5 

5 

5 

10 

10 

8 

25 

6 

8 

6 

10 

10 

5 

5 

7 

10 

6 

11 

10 


10 
2 


5 

5 

5 

10 

2(K) 

200 

1 

10 

10 

12 

20 

20 


3 

5 

20 
50 
20 

5 
30 
20 

8 
12 


20 

5 

3 

10 

90  I 

4 

1  I 
10 


Shares 
in  ledger. 


10 
21 

10 
100 
50 
o 
10 
50 

50 

1 

8 

10 

12 

10 
40 
20 

15 

20 

18 
25 

20 

10 
15 

12 

16 

U 

10 

100 

12 

10 

10 

2 

15 

10 

200 

1 

32 

40 

10 

20 

5 

13 

90 

4 
1 

15 

25 

8 

20 
50 

25 

50 

ao 


250 


INVESTIGATION    OF    NATIONAL    BANKS. 


\ 


I 


If 


^Mmf8  of  shareholders  of  the  Keystone  National  Bank  of  rhiladelphia,  efc— Continued. 


(libbs,  Alniesia* 

Hainf^s,C.C 

Do 

Do 

Do 

Harmor,  Josephine  C 

Haiurs,  H.  A 

Holhrook,  K.  M 

Do 

])0 

Howard,  James  "W. . . 

Do 

Hihlmrd,  Siiaan  Y 

Do 

Hopkins,  Edward 

Holbrook,  John  B 

Do 

Do , 

Hoopes,  D.  I 


Do- 

Hornickle,  H.  A 

JolinHon,  I.  T 

Do 

Do 

Jones,  Joshua  R 

Jackson,  J.  T 

Do 

Jarrett,  lJen.j.  F 

Jones,  Honrv 

Jackson,  W'.  S.* 

Kohlnins.  John 

Kohlmns.  A nna  L 

Do.  

Kerst,  Henry  (old  certificate  outstanding) 
Kerlin,  Isaac  Is^ 

Do 


King,  Lillie  W 

Do 

Logan,  John  P 

Do 

Logan,  Jane  H 

Lowry,  A.  A 

Long,  Benj.  C 

Do 

Long.  William  v.... 

Do 

Do 

Do 

Do 

Lex,  William  E.  *  . . . 
Lamborn,  Joseph  . . . 
Leech.  William  H... 

Do 

Do 

Logan,  Mr^.  Mary  P. 
Lucas,  J.  H .' 

Do 

Lucas  W.  K 

Do 

Lucas.  Floren«'-e 

Do 

Do 

Lucas,  Samuel 

Do 

Lucas,  Mrs.  W.  E 

J^ucas,  Ethel 

Lucas,  Mildred 

Lucas,  Granville  H.. 
Lucas,  J.  C 


Do.... 
Do... 
Do. . . . 
Do. . . . 
Do. . . . 
Lester,  B.G. 


Certif. 
number. 


Mellock.J.M 

McFadden,  Chas.. 

Do 

MoFadden,  Addle. 


•Transferred. 


871 
872 
873 
1 
762 
906 
226 
488 
670 
G44 
10 
567 
675 
493 
217 
487 
680 
490 
674 
491 
104 
495 
681 
894 
494 
737 
944 
867 


780 
688 


766 
682 


827 
892 
501 
684 
683 
502 
692 
503 
833 
573 
596 
691 
945 


938 
620 
627 
612 
433 
327 
426 
328 
427 
359 
406 
423 
:t62 
367 
4'22 
424 
425 
428 
340 
356 
36:t 
365 
413 
414 
851 
12 
826 
856 
922 


Shares   Shares 
on  stub,  in  ledger. 


1 


37 

4 
40 
30 

2 
10 

3 

2 
20 

5 

2 

1 

4 
15 
10 
20 
10 

7 

5 

2 
10 

6 

4 

10  \) 
100 

III 
ill 

10  I ) 
10  1 1 
20  i 

2 

2 

200 
200 
100 
100 
100 
100 
200 

20 

50 

25 
625 


301 

40 
14 

12 

25 

36 
5 

15 

30 
5 

425 

15 

50 

10 

10 

100 

37 

44 

30 


2 
1 

19 


52 

10 
20 

100 

4 


20 

20 
2 


200 
20 

75 

625 


\ 


INVESTIGATION   OF   NATIONAL   BANKS.  251 

jXames  of  shareholders  of  the  Keystone  National  Bank  of  rhiladelphia,  e<c.-  Continued. 


McHiirney,  D. 


McBuruoy,  E.  h,... 
McCann,  l^lement 
McArtbur,D 


Do. 


Mclhide  Bros 

McFadden,  J.  U 

Mc(;iuisland,  William  (probable  error). 

Do 

Do 

McClees,  Janie-s  E..  trustee 

1)«» 

McCillian.  William 

Mellick.Mrs.  E.  W 

Marsb.lJ.  W 

Do.* 

McM iiUen.  William 

Morgan.  James 

Massev.T.J 

Meh 


Alelonev.  »ji*^o.  !». 

Matthews,  Clias.T. 

Do 

Mackie.  as. 


Miller.  C.H.,  No.  1 

Do 

Miller.C.H,  No.2 

Miller.  J 

Motnv  A.  M 

Moore.  John 

Myers.  Jacob . . 

Morrison.  A.J 


Newton. O.C... 

NorU»n.  Clias.  D 

Nirbols.D.  P.S 

Do 

Nirdlinger.  S.  F 

Do 

Omensetter,  S 

Do 

Do 

Over.  David  A 

Do , 

Do 

Perot,  Jos.  S 

Do 

Pepper,  Carrie  C 

Do 

Do 

Penrose,  Emily 

Do 

Pennel,  W.  H.,  executor 

Do 

Do 

Peel,  James  G 

Paul,  H.  S.  (old  certificate,  10) 

Kegor.  M.  K.  * 

Roesch,  Charles 

Riebl.  Cba.s.  \V 

Ruddiman,  Harriet 

Do 

Robinson,  John 

Richel,  A.C 

1)0 

Steel,  Theodore 

Smitb,  William  B 

Swart  ley,  Samuel  S 

Shellen beiger.  C.  R 

Shirley,  Geo.  W 

Do 

Scarborough,  W.  A 

Do 

Stokes,  Richard 

Do 

Do  (old  certificate) 

Shellenl>erger,  E.  A 

Do.^ 

Seidenbach  &  Enburg 


*  Transferred. 


¥ 


MIMMH 


252 


INVESTIGATION   OF   NATIONAL   BANKS. 


Names  of  shareholders  of  the  Keystone  National  Bank  of  Philadelphia,  etc. — Continued. 


Smith,  Henrietta  M 

IKi 

Do 

Do 

Smith.  Edwin  F 

Do 

Stang,  Peter 

Do 

Staug,  George 

Do 

Sharp,  Amelia 

Taylor  &  Com'iVy,  L.  H.* '. 

Thoma.s,  Howard  V 

Do 

Torr,  r.  C 


Do 

Do 
Torr,  W.  S 

Do.* 

Tol»iii8on,  Amelia  L 

Tobia.son,  Abigail  A 

WeaA-er,  David 

Do 

Walker,  Relieeoa  A 

William  11.  Warner 

Warner,  Mrs.  Sallie 

Do 

Wilpm,  G.  S 

Whitesides,  William 

Wheeler,  Mifflin 

Do 

Webb,  Mrs.  E.  D.  (old  certiliciate) 

Webb,  Mrs.  E.  S.  * 

Ware,  Mrs.  Hettie 


ADDENDA. 


*  Tiausreried. 


Certif. 

Shares 

number. 

on  stub. 

813 

6 

835 

20 

877 

7 

910 

10 

860 

10 

911 

5 

715 

10 

10 

40 

438 

50 

714 

50 

434 

6 

712 

1 

10 

882 

5 

896 

5 

540 

5 

507 

1 

898 

20 

727 

5 

750 

904 

5 

905 

5 

455 

10 

638 

3 

840 

2 

419 

100 

549 

5 

640 

1 

927 

4 

889 

6 

890 

5 

708 

5 

47  < 

10 

650  ' 

577 


Shares 
in  ledger. 


43 

15 

50 

100 

T 


10 


10 
26 


755 
6 

5 

13 

2 

100 

6 
4 

11 

15 

5 

20 
10 


Haines 

1 

1             40 

1              1» 
45 

10 

10 

5 

20 

100 

100 

100 

100 

100 

25 

100 

100 

100 

100 

100 

50 

D«) 

Do 

Do 

Do 

Do 

Do 

Do 

Do 

Do 

Do ^ 

Do 

Do 

Do 

Do 

Do 

Do ..W 

Do 

Do 

Haines,  A.  M 

INVESTIGATION   OF   NATIONAL   BANKS.  253 

V  —Mar  20  1S91.     Amounts  due  to  national  banks.    Keystone  National  Bauk,  Philada., 
'     '  Cr. 

1  Nat.  Bank,  Batavia q^^il'Sj 

Washington  Nat.  Bank,  N.  Y i' 074*04 

Manavuuk  Nat.  Bank,  Phila - ^'V^^^ 

1  N  at'  Bank  Norristown,  Pa -'    ^ 

Stcelton  National  Bank 9  56 

Cbesttr  National  Bank .  1 1  n  77 

Second  National  Bk.  N.  Y - ^,\\iy.  H 

10, 573. 47 

I.— March  20,  1891.     Duehills  outstanding.   Keystone  National  Bank,  Philada.,  Cr. 

^     ,,.^ $760.22 

No.14477 359  Qg 

\iyi ;;;.";;:;'..':".:.*;;".!' 1,037.05 

1440U Q     QQQ 

]^^l}y ;;;:;:::::::::!!:"!"";;";;;";."-  1;  193.94 

14483 J^ 

14484 ^'g^ 

1  ^^g'g 1>  812. 90 

C.  H.  settieni'ent  runner's  noon  exchange,  Mch.  19,  '91 ^^'n^'tt 

No.  14487,  Mch.  20, '91 ^^'^ 

$43, 701. 51 

G.—Mar.  20,  1891.    Amount  due  State  hanks  and  hankers.     Keystone  National  Bank, 

Philada.,  Cr. 

Carolina  Sav.  Bk.,  Charleston,  S.  C ^lol"!? 

Reed,  McGranu  &  Co.,  Lancaster,  Pa tnkok 

Crane,  Parris  &  Co.,  Wash.,  D.  C 2,bW.6iy 

3,170.02 

D  ^Mar.  20  1891.  Deposits  made  March  'JO,  1891,  in  account  with  the  Keystone  National 
'  Bank,  Philada.,  Cr. 

.J.  D.  Laws $^.50 

Benj.  Seiser 05 

Geo.  C.  Leupold -^  ^o 

Mrs.  E.  R.  Freeman ^  ;^'^ 

City  treasurer M,lbJ.&i 

29, 240. 67 

E— Mar.  SO  1891.  Certijicaies  of  deposit  outstanding.  Keystone  National  Bank,  Philada., 

'                              *                  Cr. 
No.  585 SS 

P3|^        :4. """ 

1026."  Mrs.*  Bridget  boherty 1^ 

1509.    Mrs.  E.  R.  Freeman ^^ 

No  number ^^^  *  «„ 

No.  1560 ili'^ 

laSL    C.A.Campbell ^^ 

1658.     C.  B.  Stoy ^ 

1980 ^ 

2345 ^ 

M70  '^'^ 

2385 ^-^ 

2473 ^ 

2776 ^ 

27g4 - - *'^' 

2786.    Milbourne  McDowell J^ 

2791 ^^ 

7, 971. 91 


I 


11 

t  '1 


^  \i 


254 


INVESTIGATION  OF   NATIONAL   BANKS. 


INVESTIGATION   OF    NATIONAL   BANKS. 


255 


I 


I 


M 


i 


ijl 


Schedule  A1. — QtiarUr  ending  Mar.  20, 1801. — Bills  receivable  in  the  hands  of  there- 
ceiverof  ihe  Keystone  National  Bank  of  Philadelphia,  Pa. 


No. 

1 

2 

:t 
4 

5 
6 

7 
8 


9 

10 
11 

12 

13 
14 
15 
16 

17 

18 
19 
2U 
21 
22 
23 
24 
25 
26 
27 
28 
29 

:to 

31 

32 

33 

:54 
35 
36 
37 
38 

39 
40 
41 
42 
43 


Maker. 


L.  L.  C»ne    (Santa 

Clara,  Winn  Co.). 

M.  1>.  Loevv 


H.B.  Driver 

Cliiir!»'8  Lawrence  .. 
Van  Dyke  iV  Conip'y , 
James  Kennedy  ... . 

P.  Wallace 

James  McCorniiek. . 


44 

45 
46 
47 
48 
49 
50 

51 

52 
53 
54 


55 


C.^  C.  liippinrott... 

W.  Searborou<>li 

H.  F.  Atkinson  & 

Comp'v. 
H.  B.  Driver 


G.  Byron  Morse 

Clias'.E.CJlent  worth 

Edwanl  Stewart 

Morris  L.  Lessly  . . . 


Endorser. 


L.  L.  Cane — balance 

M.  P.  Loevy,  E.  P. 
Goodman. 

H.B.  Driver 

B.M.Goldberg.... 

Geo.  M.  Vicker 

Jas.  Keunedv,l)re8t., 
Atkin.son  Bros. 

P.  Wallace 

Keystone  Watch 
Olub  Co.,  Atkin- 
son Bros. 

I   •   •   ■    ■    a  VH.P  •••«•■    •••■•* 

do 


Date. 


Atkinson  Bros. 


W.T.Shaw 

Jolin  Smith 

H.  W.  Kelsev 

Willis  G.  Hale 

W.  (!alhotin , 

John  I.  Car  berry 

James  N.  Elliott 

James  L.  Allan 

John  M.  Driver 

Alfred  Hindle 

Kobert  Cams 

J  ames  M  organ 

Robert  Cams 

James  L.  Allan 

S.  E.  Packard,  agent. 

B:arvey     Filley    & 

Sons. 
S.  E.  Packard,  agent. 

S.  E.  Packard,  agent. 
William  H.Brown.. 

James  Morgan 

D.L.Drew 

S.  E,  Packard,  agent. 

Frank  T.  Primrose  . . 
Frank  L  Primrose  .. 

Robert  Cams 

Charles  McGlade  . . . 
William  H.  Moyer  . . 


James  L.  Allan 

Charles  McCrlade  .. 
Frank  I.  Primrose . 

D.  I.  Tlioinpson 

Frank  f.  Primrose . 
Charles  .McGlade . . 
William  H.  Moyer. 

William   U.   Hutch- 
inson, et  al. 
Frank  1.  Primrose. 
Charles  McGlade  . . 
William  H.  Moyer. 


Thomas  W.  Dickson 


Jno.  :M.  Driver,  H. 

B.  Driver. 
G.  Jiyron  Morse. . . 

AV.  (  alhonn 

Edward  Stewart  . . 

C.  A.  Thompson,  L 
Hayes,  treas. 

AV.  F.Shaw 

John  Smith 

H.  W.  Kelsev 

Willis  G.  Ha'le 

John  Hayes,  treas.. 

W.  S.  Wolford 

do 

Faulkner  &  Allan.. 
John  M. Driver  ... 

F.A.Mitchell 

Robert  Cams , 

James  Morgan 

Kobert  Cams , 

Faulkner  &  Allan. 
H.E.Pa<!kard,H.S. 

Packard. 
Harvey  Filley  Alu- 

mio  Phtg.  Co. 
H.  E.  Packard.H.  S. 

Packard. 

...do 

William  H.  Brown. 
James  Morgan. 

D.  L.  Drew 

H.E.Packard,H.8. 

Packard. 

Frank  I.  Primrose. . 

...do 

Uobert  Cams 

John  S.  McKinlay  . 

James  R.  White, 
manager,  Granv. 
B.  Haines,  M.  E. 
Lucas,  adminis- 
trator est.  J.  C. 
Lucas. 

Faulkner  &  Allan . . 

John  S.  McKinlay  . 

Frank  I.  Primrose. . 

Faulkner  &  Allan.. 

Frank  I.  Primnise.. 

John  S.  McKinlay. . 

James  R.  White, 
manager. 

Geo.  W.  Shirley 

Frank  I.  Primrose . . 
John  S.  McKinlay  . . 
James  R.  White, 

manager,  Granv. 

B.  Haines,  M.  E. 

Lucas,    aidminis- 

trators  est.  J.  C. 

Lucas. 
James  Diokson 


2,   7, '88 

3,*  6,  '89 

11, 22,  '89 

11,12, '89 

1, 15,  '90 

1,   2, '90 

2, 25,  '90 
1,27, '90 


1,27, 'no 

1,  28,  '90 

2,  1,'90 

6,  7, '90 


Maturity. 


Apr.  10,  '88 
Apr.    8,  '89 


Mcli. 

Apl. 

May 


25, '00 

15, '90 

18,^ 

5, '90 


May  28, '90 
May  30, '90 


May  30, '90 
May  31, '90 
June    4,  '90 

Aug.  10,  '90 


5, 13,  '90  Aug.  16,  '90 
6,  2, '90  Sept.  5, '90 
7, 12,  '90  j  Sept.  15,  '90 
7, 18,  '90  ;  Oct.    21,  '90 


6,  25,  '90 

8,  2, '90 

7,  20,  '90 
10, 21, '90 

8, 20,  '90 

9,  1.'90 
9,   3, '90 

8,  4, '90 
9, 19,  '90 

9,  22,  '90 
8,  22,  '90 
8, 25,  '90 
8, 25,  '90 
8, 27, '90 

10,  29,  '90 


Oct.  28, '90 
Nov.  5.  '90 
Nov.  23, '90 
Nov,i)24,  90 
Nov.  23, '90 


Dec. 
Dec. 
Dec. 
Dec. 
Dec. 
Dec. 
Dec. 
Dec. 
Dec. 


3, '90 
5, '90 
7, '90 
22. '90 
24,  '90 
25, '90 
28, '90 
28, '90 
30, '90 


Jan'y  l,'9l 


10, 31,  '90   Jan'y  2,  '91 
10, 31,  '90  '  Jan'y  3,  '91 


11,   1,'90 

9. 23,  '90 
9,   4, '90 

10,  7, '90 

11,  8, '90 

9, 17,  '90 

9. 24,  '90 
10, 24,  '90 

9. 25,  '90 

9. 26,  '90 


Jan'y  4, '91 
Jan'y  5, '91 
Jan'y  7, '91 
Jan'y  10, '91 
Jan'y  11, '91 

Jan'y  20, '91 
Jan'y  27, '91 
Jan'y  27, '91 
Jan'y  28,  '91 
Jan'y  29, '91 


9, 27,  '90 
10,  2,  "90 
10,  2, '90 
10,  7, '90 
10,  9, '90 
10,  9, '90 
10, 10,  '90 

10, 14,  '90 

10,  6, '90 
10, 16,  '90 
10, 20,  '90 


12, 20, '90 


Jan'y  30, '91 
Feb'y  6, '91 
Feby  5, '91 
Feb' V  10. '91 
Feb'y  12,  "91 
Feb'y  12, '91 
Feb'y  13, '91 


Good. 


$400.00 


Doubt- 
ful. 


Worth- 
less. 


!  $2,437.06 
100.00 
150.00 


-^1 


$183. 75 


610.00 

60.00 

227.  00 


1,500.00 
600.00 

2,  000.  00 
124.  72 
144.50 


100.  (H» 
645.00 


675.00 
680.00 
694. 20 

1,  000.  00 


360.00 


1, 950. 00 
100.00 


500.00 


500.00 
250.66 


2,500.00 


2, 000. 00 
1,000.00 
598.  50 
1,000.00 
1,000.00 
1,000.00 
1,  400.  00 


900.00 


500.00 


2,500.00 


2,500.00 


Feb'y  17, '91  i  1,800.00 


Feb.  19, '91 
Feb.  19, '91 
Feb.  23, '91 


1, 050. 00 


150.00 


Feb.  21, '91 


2.500.00 


150.00 


590.00 


2,500.00 


3,200.00 
2,500.00 


6,000.00 

2, 895. 66 
2, 576. 77 


4, 368. 46 


1, 976. 78 


2,261.70 
'4,'454.6i 


y 


3, 105.  95 


4,310.92 


i. 


Schedule   Al. — Quarter  endin;/    Mar.  W,  1801. — Bills  receirobh-  in  the  hands  of  the 
receirtrr  of  the  Keystone  National  Bank,  of  Phila^eljihia,  Pa. — Contiimed. 


No. 

56 
57 


Maker. 


Spring  Lake  Beach 

Imp.  Cc. 
William  H.  Moyer  . . 


58 

59 
60 

61  I 

62  ' 

63  j 
64 

65  I 
I 

66  i 

68 


70 

71 
72 
73 
74 
75 
76 

77 
78 
79 
80 
81 
82 
83 
84 
85 
K6 
87 
88 


Endorser. 


William  H.  Moyer . . 

James  L.  Allan 

S.  E.  Packard,  agent,  i 

S.  E.  Packard,  agent. ' 
Thomas  E.  Wannau .  \ 

James  LKing ' 

Robert  Evans 

Penn.  Rooting  Com- 

p'y. 

Robert  Car  us 

Lewis  U.  Wiley 


L  H.  Reigel 


90 
91 
92 

93 
94 
95 
96 


William  Calhoun  . . . 
Robert  M.  Wiley 

WiLson  E.  Allen 

Michael  Meagher  . . . 

Jacob  Hartmau 

William  I.  Simmons  . 

John  F.  Zebley 

William  M.  Stuart . . 

Hugh  Graham 

D,  Chambers 

Clinton  V.  B.  Getty  . 

Preston  Price 

John  G.  Divine 

Marie  BoLoskey 

Sallie  M.  Baker 

Alfred  D.  Cams 

John  I.  Pvle 

William  B.  Greer  . . . 

Charles  S.  Salin 

Excelsior    Hosiery 

Comp'y. 

William  Auld 

L  W.Baker 

William  Calhoun . . . 
Reynolds,  Goodyear 

&  Co. 

Charles  White 

SarauelR.  Wink  .... 
William  I.  Simmons 
George  W.  M.  Rigor 


97     Richard  S.  Collins 


98 
99 
100 
101 
102 
103 

104 
105 
106 
107 
108 
109 
110 
111 
112 
113 
114 
115 


M.  McNulty 

Robert  M.  Wiley... 

Emma  C.  Reed 

William  I.  Simmons 

A.M.  Zant; 

B.  H.Davis 


James  B.  Carey 

Jacob  G.  Dietrich . . . 

W.  1.  Simmons 

Cliuc  Brothers 

Clias.  P.  Herold 

Dean  C.  Osbom 

William  D.  Troupe  . 

Charles  Beamish 

W.W.Watson 

Amos  O.  Chase 

John  McFadden 

Geo. Holland  ffa?... 


116  1  L  S.Whitby 


Spring  Lake  Beach 
Imp.  Co. 

James  R.  White, 
nmn'ger,  Graa. 
B.  Haines,  M.  E. 
Lucas,  adminis- 
trators «8t.  J.  C. 
Lucas. 

James  R.  White, 
manager. 

Faulkner  &  Allan  . . 

H.  E.  l»ackard,  H.  S. 
I'ackard. 

. . .  -do 

H.H.Yard 

John  W^.  Barrow — 

Robert  Evans 

F.A.Mitchell 

Robert  Cams 

Robt.   M.    Wiley, 

Philip  Lowry. 
Harry  Holt,  Kyle, 

Berry  &  Co.,  Lmt. 
George  L.  Harvey  . . 
Robt.  M.   Wiley, 

Philip  Lowry. 
Thomas  E.  Warman 

August  Stang 

A.  H.  Moore 

William  I.  Simmons 

John  I.  Pyle 

Kyle,  Berry  &  Co., 

Ttmta. 
Hiigh  Graham's  Son 

D.  Chambers 

Clinton  V.  B.  Getty . 

Henry  McHugh 

JohnG.  Divine 

G.W  .Marsh,  presdt. 

Sally  M.  Baker 

Alfred  D.  Cams 

John  I.  Pyle 

Central  3iarket  Co. 
G.  W.  Marsh 

C.  N.  Shellenberger. 

John  Craig  &  Sou  . . 
William  1.  Divine.. 

Geo.  L.  Harvey 

T.LDunn&  Co 

Daniel  McArthur.. 
Central  Market  Co. 
William  I.  Simmons 
Geo.  B.  Heath,  P.  L. 
Hill. 

D.  &  I.  C.  Nol»litt 
ifeCo. 

John  M.  Kyle 

Central  Market  Co . 

Emma  C.  Reed 

William  I.  Simmons 

Matthew  Hall 

Kyle,  Berry  &  Co., 

Limtd. 
Geo.  W.  Clothier  . . . 
Alfred  B.  Wenrich  . 

W.  I.  Simmons 

I.  F.  Portuondo 

Chas.  P.  Herold 

E<lwd.  H.  Fahey  . . . 

John  I.  Pyle 

Charles  S.  Dungan  . 
John  L.  Galloway. . 
Andrew  Marshall . . 

Htnry  McHugh 

Jno.  A.  Forepaugh, 

Geo.  Holland. 
Philip  Lowry 


Due. 

12,  26,  '90 
10, 25,  '90 


11,   1,'90 

11,   4, '90 

9. 27,  '90 

10, 13,  '90 

11,  8, '90 
12, 8,  '90 

12, 11,  '90 
12, 11,  '90 

12. 16,  '90 
2, 17,  '90 

12. 17,  '90 

1. 17,  '91 

2. 18,  '91 

11, 20,  '90 
2,  21,  '91 

1. 22,  '91 

12,  22,  '90 
12,  24,  '90 

2. 25,  '91 

2. 28,  '91 
12,  29,  '90 

2,  28,  '91 
1,30, '91 

12,  3, '90 
2,   4, '91 

12. 10,  '90 
3, 14,  '91 
2, 13,  '91 
2, 13,  '91 
1,14, '91 

12, 15, '90 

2. 16,  '91 

1. 17,  '91 

1. 17,  '91 
12, 17,  '90 

1. 19,  '91 

2. 18,  '91 

1. 20,  '91 

1. 23,  '91 

1. 26,  '91 

1. 26,  '91 

1. 27,  '91 
12.  29,  '90 

1,  31,  "91 
12, 31,  '90 

2,  2, '91 

2,  4,  91 

3,  6, '91 
2,  6, '91 
1,  7, '91 
1,  8, '91 

1,  8, '91 

2,  9, '91 

2. 11,  '91 

3. 12,  '91 

3. 13,  '91 

2. 14,  '91 
3, 16,  '91 

2, 14,  '91 


I 


Maturity. 


Mh.      1,  '91 
Feb.  28, '91 


Mch.    4, '91 

Mch.  7, '91 
Nov.  30,  '90 

Dec.  16, '90 
Mch.  11, '91 
Mch.  11,  91 
Mch.  14,  '91 
Mch.  14,  '91 

Mch.  19,  '91 
Mch.  20,  '91 

Mch.  20,  '91 

Mch.  21,  '91 
Mch.  21,  '91 

Mch.  23,  '91 
Mch.  24,  '91 
Mch.  25,  '91 
Mch.  25,  '91 
Mch.  27,  '91 
Mch.  30, '91 


Mch. 

April 

April 

April 

April 

April 

April 

April 

April 

April 

April 

April 


31, '91 

1,'91 

2, '91 

3, '91 

6, '91 

7, '91 

13, '91 

16, '91 

16, '91 

16. '91 

17, '91 

18, '91 


April  18, '91 
April  20, '91 
April  20, '91 
Apr.   20, '91 

Apr.  22, '91 
Apl.  22, '91 
Apl.  23, '91 
Apl.    25, '91 

Apl.    29, '91 


Apl. 
Apl. 
May 
May 
May 
May 

May 
May 
May 
May 
May 
May- 
May 
May 
May 
May 
May 
May 


29, '91 
30, '81 
2,  91 
3, '91 
3, '91 
5, '91 

8, '91 
8, '91 
9, '91 

10,  '91 

11,  '92 
11, '91 

12,  '91 

14,  '91 

15,  '91 

15,  '91 

16,  '91 
18,  '91 


May  18, '91 


Good.      Doubtful. 


Worth- 
less. 


$5,000.00 
4, 506. 21 


$350.00 


$300.00 

i26.66 


4,  019. 92 


5,  600. 00 

6.  '_»00.  (K) 
l,86:i.00 


250.00 
100.00 


150.00 


606.50 
10L50 


500.00 
140.  00 


105.00 


400.00 
300.00 
200.00 
300.00 


1,  000. 00 
47.87 

i,  666. 66 

99.00 
275. 00 


I 


72.66 


1, 000. 00 
200.00 

90.00 


T50.00 
400.00 


150.00 


500.00 
350.00 


133.00 


1,000.00 

1,000.00 

i 

i:::::::::: 

i 
1 

1,  835.  21 

1,200.00 

i 

135.00 

1 

200.00 

55.00  



1 

150.00 

1 

125.00 

1,835.22 

195.00 

272. 00 

250. 00 

4" 

195.00 



17.5.00 
65.00 

75.00 

100.00 

1, 000. 00 

500.00 

*»IU- 


■    ,  .   y-,.^  ■  A_,  ■*■■»,  —J 


256 


INVESTIGATION    OF    NATIONAL    BANKS. 


Schedule  A1. — Quarter  ending  Mar.  20,  1891 — Bills  receivable  in  the  hands  of  the  re- 
ceiver of  the  Keystone  National  Bank,  of  Philadeljfhia,  Pa. — Continued. 


No. 


' 


4;   0 


•;■  \ . 


Maker. 


117 
118 
119 

120 
121 

122 
123 
124 
125 
126 
127 
128 
129 
130 
131 

132 
133 
134 

135 
136 
137 
138 
139 
140 
141 
142 
143 
144 
145 

146 
147 
148 
149 
150 
151 
152 
168 
154 
155 
156 
157 
158 
159 
160 
161 
162 
163 
164 


165 
166 
167 
168 

169 
170 
171 
172 
173 
174 


175 
176 
177 
178 
179 
180 
181 
182 
183 
184 

185 


Aman  ic  Bro. 
R.O.  Gibbon. 
E.  E.  Perry  . . 


Geo.  W.  Wright  ... 
Thomas  Burliam  &, 

Sons. 
do 

,    «   a    ■  UO      •••«••••••••••• 

,     a     ,     .   UO       •     ■*•••*     ■>••*••< 

Chailes  Zane 

William  M.  Stuart . 
Aman  <fc  Bro 

E.  K.  Bryan 

Croorge  W.  Smith  . . 
Milton  C.  (Jreiuer... 
Kovstone  Watch 

Club  Co. 
,  • . •  do  •••••••-•••»•- 

do 

Lewis  Cassedy 

I.  B.  Ma<'aft'e 

John  Nolen 

James  W.  Sayre  .  • . 

F.  M.  Fre^iburg 

C.  F.  Turner 

B.  Frank  Cooling  . . 

John  Mair 

John  Mair 

S.  Robiuwon 

L.  H.  Patterson 


W.  M.  Griffiths 

C.G.Welch 

William  R.  Fenner. . 

George  Rossitcr 

Thomas  Brown 

— do 

— do 

. . .  .do 

do 

do 

do 

— do 

Robert  M.  Wiley  . . 
William  I.  Simmons 

M.  E.  BroderJck 

H.Irvine 

T.W.Manship 

Geo.  W.H.Smith.. 
R.  Reach 


Endorser. 


E.  R.  Bryan 

George  Keeglor 

Geo.  A.  Perry,  M. 

Foreman. 
George  W.  Wright 

F.  M.  Freeburg 


Due. 


Maturity.       Good 


8, 16.  '91  I  May  19,  '91 
1,24, '91    Apl.   27, '91 


James  McHenry — 

Louis  Eiohoff 

Louis  Eichoff 

William  I.  Keely  . . . 

John  M.  Kyle 

E.  K.  Bryan 

E.R.  Bryan 

A.  B.  Wenrixjh 

W.K.Mitchell 

Atkiuson  Bros 

...do 

Keystone   Wat  oh 

Club  Co. 

I.  B.  Macafee 

Frank  Farrell 

John  Nolen 

James  W.  Sayre 

W.  K.  Mitchell 

C.F.  Turner 

Jos.  M.  Cooling 

George  L.  Harvey.. 
George  L.  Harvey  . . 

Aman  &  Bro 

£.  S.  Bortel  &,  Com 

panv. 
Wm.  t.  Alexander  . 
W.L  Jackson  &  Co  . 

John  M- Kyle 

John  M.Kyle 

Thomas  Brown 

...do 

...do 


4. 15,  '89 

8,21, '8^ 
10, 18,  86 

3, 12, '87 

3, 26,  '87 
4, 14,  '87 

1. 16,  '88 

9. 25,  '90  ; 
9,  i:{,  '90  i 
5, 29,  '90 

10, 14,  '90  1 
10,  30,  '90  I 

2. 26,  '90 


July  18,  '89 

Nov.  24,  '89 
Jan'y21,'87 


DoubtfiU. 


May 

June 

May 

Mch. 

Dec. 

Jany. 

Oct. 

Jany. 

Feby. 

Mch. 


15,  '87 
30,  '87 
29, '87 
19,  '89 
28,  '90 
10,  '90 

2,  .90 
17,  '91 

2,  '91 
29  '90 


2, 11, '90    Aprill4,'90 

2. 24,  90  I  Apl.  27, '90 

3. 25,  '90  I  July  28,  '90 


.do. 


Andrew  Hughes 

Aman  &  Bro 

M.  B.Dwignt    

Morris  Spackman . . . 

Charles  B.  Lynch . . . 
William  K. Murphy. 

James  Bimio 

John  Craig  &  Son  . . 

O.  C.  Bosbvshell 

Vallee      Bros.       & 
Comp'y. 

Henry  H.  Yard 

JohnT.  Scott,  jr 

E.  1.  IjOX  ............ 

William  L.  Lance. . . 

Marv  Harh'y 

William  I.  Simmons. 

Anton  Aman 

Adam  Koebler,  jr. . . 

F.  A.  Davis 

Geo.   W.  Smith  & 

Comp'y. 
Jacob  Greer 


.do. 
.do. 
.do. 
.do 


Central  Market  Co  . 
William  I.  Simmons 
K.  L.  McMenomy  . . 
Central  Market  Co  . 
Chas.  R.  Hamilton. . 
Geo.W.Cloither.... 
D.  &  L   C.  Noblit, 

D.  &  J.  C.  NobUt 

&Co. 
Jos.  F.  Kerbangh  . . . 

R.  Q.  Gibbon 

LG.Ramsdell 

Doran  Young,  Jno. 

Craig  &  Sou. 

L.  W.Walsh 

John  O.Bowman  .. 
Central  Market  Co . 

Daniel  Coogan 

O.  C.  Bosby  shell .... 
Cleverly    El  e c  t. 

W'rks,     H.     A. 

Cleverly. 

Henry  H.  Yard 

John  T.  Scott,  jr 

Central  Market  Co  . 
Andrew  H.  Haig... 

Henry  McHugh 

'  William  1.  Simmons 
George  W.  Clothier. 
La  Roche  &  Stahl . . 

F.  A.  Davis 

Geo.  E.  Dearborn  . . 

Central  Market  Co . 


4, 18,  '89 
3, 15,  '90 
7, 23, '90 
5,   9, '90 

8,  6.  90 

10,  9, '88 

11,  24,  '90 
1, 17,  '91 

1. 17,  '91 
10, 11, '90 

2,  16,  '91 

8, 11,  '90 
7,  23,  '90 

9,  25,  '00 
7,  30,  '90 

11, 15,  '89 

12,  6, '89 
12, 18,  '89 

1,  5, '90 
1, 13,  '90 

1. 18,  '90 
1,  28,  '90 
2, 18,  '90 
2, 17,  '91 
2, 17,  '91 

2. 17,  '91 

2. 18,  '91 
2, 21,  '91 
2, 20,  '91 
2, 20,  '91 


2, 21,  '91 
2,  21,  '91 
2,  23,  '91 

2. 23,  '91 

2. 24,  '91 
2, 24,  '91 
2, 24,  '91 
2, 24, '91 
2,25, '91 
1, 26,  "91 


2, 26,  '91 

2. 26,  '91 

2. 27,  '91 
2, 27,  '91 
2.  27,  '91 
2, 27,  '91 
2, 27,  '91 
1,  29,  '91 
1, 31,  '91 
1,   1,'91 


May  21, '89 
Aug.  26,  '90 
Aug.  26,  '90 
June  11.  '90 
Nov.  9,  '90 
Dec.  12, '88 
Feby.  27, 91 
Apl.  20, '91 
May  20, '91 
Feb.  14, '91 
May  19, '91 


Dec. 

Nov. 

Nov. 

Oct. 

Mch. 

Apl. 

Apl. 

May 

May 

May 

May 

June 

May 

May 

May 

May 

May 

tJLAy 

May 


14, '90 
26, '90 
27,  '90 
31, '90 
18, '90 

9, '90 
21, '90 

8, '90 
16, '90 
21, '90 
ai,  '90 
21, '90 

20,  '91 
20, '91 
20, '91 

21,  '91 
23,  '91 
23,  '91 
23,  *01 


$1. 570. 42 
2, 100. 00 


May  23, '91 

May  23, '91 

May  26, '91 

May  26, '91 

May  27, '91 

May  27, '91 

May  27, '01 

May  27, '91 

May  28, '91 

May  29, '91 


May 

May 

May 

May 

May 

May 

May 

June 

June 

June 


29, '91 

29, '91 

30, '91 

30, '91 

30,  '91 

30, '91 

30.  '91 

1,'91 

3, '91 

3, '91 


3,  2, '91    June    5, '91 


231.00 


101. 62 


65.00 
200.00 
175.00 
467.00 


10L50 
400.00 
302.  21 
270.00 

120.00 
250.00 
183.45 
200.00 


206.88 


$2:18. 20 
085.  41 
800.00 
100.00 
494.60 
80.00 

100.00 

150.00 

3,500.00 

144. 73 
150.00 
90.00 
312.  72 
419.50 
150.00 
102.20 


452. 11 


,  000.  00 
500.00 
151.50 
250.00 
321. 15 
250. 00 
250.00 
250.  00 
250. 00 
250.00 
250.00 
250. 00 


Worth- 
less. 


$700.00 
500.00 
287.50 

5,000.00 
1, 150.  00 

590.00 

890.00 

860.00 

2,  040. 00 


I 


175.00 
450.00 


100.00 
144.10 
142. 15 
100.00 


125.00 

95.75 

1, 000. 00 

1, 345.  39 

40L  80 


1,200.00 


330.00 


32,438,72 


1*1 


INVESTIGATION    OF    NATIONAL    BANKS. 


257 


Schedule  A  1.— Quarter  ending  Mar.  20,  1801— Bills  receivahU  in  the  hands  of  the  re- 
ceiver of  the  Keystone  National  Bank  of  Philadelphia,  Pa.— Continued. 


No. 


186 
187 

1H8 
189 

r.H) 

101 

102  i 

19:{ 

104 

105 
196 
197 

198 

199 
2(H) 

2(H 

202 

2il3 
204 
2t)5 
206 
207 
208 

209 
210 
211 
212 
213 
214 
215 

210 
217 
218 
219 
220 
221 
222 

223 

224  i 

225  , 

226  ' 

227  ' 
228 

229 


Maker. 


George  F.  Lowry  . . 
Mrs.  E.  S.  Topliss  . 
E.  P.  Townsfud  . . . 
Edgar  N.  Black... 
.luan  K.  Portuondo. 
.lolui  S.  Mcllvain. . 
John  Flaig  &•.  Com- 

Honry  H.  Yard 

(.'bristian  Mack 

Bonner  &.  Ki.sler . . . 
Henrv  H.  Yard.... 
I.  S.  McMiirtrie  . . . 
W.  E.  Herring 

William  I.  Simmons 
John  Pike 


Endorser. 


William    M.    Grif- 
fiths. 
F.  A.  Davis,  trea.s  . 

Newton  K.  Kegar... 

'I'lioiiiaH  H.  Hunter  . 

H.  \V.  KtlsHV 

('liarles  I.  Fletcher. 

William  Y.  Warner. 

Samuel    M.    Mcll- 
vain. 

C.  B.  Reeves 

Thomas  E.  Warman. 

Isaac  Brown 

Tliomas  E.  Warman . 

Henry  (iercke 

Thomas  E.  Warman . 

(Jeorge     W.     Ken- 
drick,  jr. 

John  McFadden 

Cox  &  Sons 

Robert  Nichol 

A.  <T.  KeUogg 

C.  E.  Wyman 

Geo.  A.  Scbafer 

Bra<lfoid  Hills  Land 
Co. 

Isaac  Flemming 

Henry  Redman 

I.  L.  Cramner 

John  T.  Duulap 

Mary  H.  McGlade  . 

Con.s  tan  tine  Car- 
penter. 

H.  VanBcil 

U.YanBeii&Com 
j      P\V 

231  Harry  M.  Dixey 

232  j  George  W.  Smith  & 
I      Co. 

233  1  Harry  H.  Long 

234 
235 
236 
237 
238 
239 
240 
241 
242 
243 
244 


Philip  Lowry , 

( Jeo.  W.  Hopkins  . 

LG.Ramsdell 

('.  A.  Kingsbury  .. 
.luan  F.  Portuondo. 

(j.  C  Haines 

D.&I.NobUt&Co. 

Henry  H.  Yard 

Robert  M.  Wiley... 

S.  Blark 

Henry  H.  Yard 

W.  1).  Pric« 

Theresa     Herring, 

W.  E.  HeiTing.r 
William  I.  Simmons 
D.  &  I.  C.  Noblit  & 

(Jomp'y. 
W.  T.  Alexander... 

F.  A.  Davis,  W.  S. 
Griffith  &  Co. 

Newton  K.  Regar  .. 

Thoma.s  Lewis 

H.  W.  Kelsey 

McLear  &  Kendall . 
W.J.  Quigley 

G.  B.Russell 


Date. 


3,  3, '91 


Maturity. 


Grood. 


June    6,  '91 


3,  3, '91    June  6, '91 

3,  3, '91    June  6, '91 

3,  5, '91    June  6, '91 

3,  3, '91  June  6, '91 

3,  4,  '91  June  7,  '91 

3,  4, '91    June  7, '91 


2,  5, '91 

3,  7, '91 
3,  5, '91 

2,  6, '91 

3,  6, '91 
3,  6, '91 

3,  6, '91 

3,  7, '91 

3,  7, '91 

3,  7, '91 


Doubtful 


Worth- 
less. 


i 

.  h\ 

<    4  1 


June 
June 
June 
June 
June 
June 


8, '91 
8, '91 
8, '91 
9, '91 
9, '91 
9, '91 


June    9, '91 
June  10,  '91 

June  10,  '91 
June  10,  '91 


Henry  Coward 

H.H.  Yard 

Central  Market  Co.. 

H.  H.  Yard 

I.  A.  Gercke 

H.H.  Yard 

Chas.  H.  Kendrick . 

Hemy  McHugh 

Chas.  C.  Torr 

G.  W.  Marsh,  presd't 

A.  G.  Kellogg 

C.  E.  Wvnian 

Sallie  W\  Baker  . . . 
Nelson  F.  Evans  . . 

F.  A.  Davis 

LG.Ramsdell 

Jos.  A.  Wilson 

John  F.  Lawrence. 
Charles  McGlade. . . 
I.  A.  Wilson 


3,  9,  '91    June  12,  '91 
3,   9,  '91    June  12,  '91 

2,  9,  '91  j  June  12,  '91 

3,  9,  '91  i  June  12,  '91 
3,   9,  '91    June  12,  '91 

3. 10,  '91  I  June  13,  '91 

3. 11,  '91    June  14,  '91 

2. 11,  '91    June  14,  '91 

3. 12,  '91  I  June  15,  '91 

2. 12,  '91  I  June  15,  '91 

3. 13,  '91  :  June  16,  '91 


$315.00 
650.00 
75.00 
100.00 
5, 000. 00 
600.00 
313. 59 


100.00 


2. 13,  '91 

2. 14,  '91 


200.00 
'i26."56 

500.00 


75.00 

1,500,00 

225.00 


$157. 50 
"304.66 


$5, 300. 00 

6,' 666.' 66 


540. 00 
1, 000. 00 


400.00 


June  16,  '91 
June  17,  '91 


2, 14,  '91  June  17,  '91 

3, 14,  '91  June  17,  "gi 

3. 14,  '91  June  17,  '91 

3, 14,  '91  June  17,  '91 

3. 16,  '91  June  19,  '91 

2. 17,  '91  June  20,  '91 
2,17, '91  June  20, '91 


245 

24C 
247 
218 
2  t» 
1'50 


James  Reilly 

Mary  Myers 

William  M.  Hirst... 

A.  G.  Cleminer 

Fletcher  Pearson  . . . 

Bonner  &  Eisler 

William  Rhodes 

N.  Moritz 

Sallie  M.  Baker 

1.  Henry  Hayes 

WajTie  Stone  Com- 
pany. 
Excelsior    Hosiery  ' 
Comp'y.  •    j 

1.  iv.  Cramner ■ 

Henry  H.  Yard j 

Jaims  Reillev I 

^fo Bride  Brotliera.. 
I.S.Carter 


3792- 


H.  Van  Beil 

H.  Van  Beil  <fe  Com- 

p'y- 

R.  C.  Horr  &  Com- 

p'y. 

George  E.  Dearborn 

H.  Van  Beil  &  Co. 

H.  Van  Beil. 
H.  I.  &  G.  R.  Crump 

W.Riddle 

L  G.  Ramsdell 

L  G.  Ramsdell 

Charles  A.  Pearson. 

S.  Black 

Matthew  Hall  

H.  I.  Bergman 

L  W.Baker 

J.  Henry  Hayes 

Wayne  Stone  C(»m- 

p'.y- 

Excelsior    Hosiery 

Comp'y. 
Charles  McGlade  . . 

H.  H.  Yard 

H.L&  (J.  R.  Crump 

McBride  Bros 

F.A.Davis 


2. 19,  '91 

2. 20,  '91 
2, 22,  '91 
2, 24,  '91 
2, 24,  '91 
2, 27,  '91 

2, 27,  '91 
2, 27,  '91 


June  22,  '91 
June  23,  '91 
June  25,  '91 
June  27,  '91 
June  27,  '91 
June  30,  '91 

June  30,  '91 
June  30,  '91 


2,  27,  '91    June  30,  '91 


L  l,'9l 

3,  2, '91 

3.  3, '91 

3,  3, '91: 

3,  4,  '91 

3,  4,  '91 

3,  5, '91 

3,  5,  '91  i 

3,  6,  '91  I 

3,  7, '91  I 

3,  7,  '91  ! 
3, 10,  '91 
3, 10,  '91  ! 


35.90 

"466.66 

466.66 

350.00 
500.00 
100.00 
350.00 
50.00 
1,200.00 


4,000.00 
400.00 

453.47 


1, 570. 00 
1,256.66 
i,9i5. 66 


500.00 
90.00 


2,000.00 


500.00 
1, 300. 00 

600.00 


July    3, '91     1,345.39 
July     5,  '91  \      503. 68 


L 000. 00 
100.00 

"864.66 


July 
Jul.V 
July 
July 
July 
July 
July 


6, '91 
6, '91 
7, '91 
8, '91 
8, '91 
8, '91 
9, '91 


306,25 
155.00 
100 
600.00 


July  10,  '91  I 

July  10,  '91  ' 

July  13, '91 

July  13, '91 


3, 11,  '91  i  July   14,  '91 


-17 


3, 14,  '91  •  July  17,  '91    500. 00 

3, 14,  '91  i  July  17,  '91 

3,14, '91    July  17, '91    16,912.00 

3, 14, '91  i  July  17. '91  I  3,«H)0.00 

3,13,'9x!july  16, '91!      700.00  I 


1,000.00 
1,000.00 
1,  000.  00 
3,  500. 00 


1, 025. 00 


3,000.00 


4,650.00 


157.50 


L  000. 00 


6,500.00 


«••••< 


258 


INVESTIGATION    OF    NATIONAL    BANKS. 


,     INVESTIGATION   OF    NATIONAL    BANKS. 


259 


Schedule  A1.— Quarter  endhfff  Afar.  20,  tSOl.—Bilh  receirahJe  in  the  hands  of  the  re- 
eeirer  of  the  Keystone  XntknMl  Bank  of  PhiladHphia,  /'a.— C'outiiiuecl. 


361 
252 
253 
254 

255 

256 
257 
258 
259 

260 
261 
262 
263 
264 
265 

266 
267 

269 
270 

271 
272 
273 
274 
275 


W.  I.  Jackson 

Thomas  Chadwk-k 
D.  M.  Stackhoiise  . . 
Excelsior    Hosiery 

Co.  ^ 

Geo.  I.  Kavmoiul  &. 

Co. 

Isaac  H.  Evans 

I.  W.McCaflFerty... 

Isaac  H.  Evaus 

Clintou  Bnckwalter 

W.  S.  Jackson 

C.  A.  Meloney 

Hnghes  &  Brb , 

Koch  &  Company. . , 

Ernest  Redford.* 

Bureau    Can   Com- 
pany No.  1 . 

Maurice  Landauer. . 

C.Haw 

I).  L.  Drew 

James  M.  Battorsby 
Dell  &  Jos.  C.  Nob'- 

lit  &  Co. 
G.  W.  Marsh 

D.  L.  Drew 

Horatio  G.  Kern 

John  I.  Pvle 

E.  P.  Richmoud  & 
Co.,  Lim'td. 


Endorsw.  Date. 


Robt.  A.  Jack  sun    . .  3, 10,  01 

Chas.  H.  Kcndrick .,  3, 16,  "91 

John  W.  Boughton.  I  3, 16  '91 

Excelsior    Hosiery  3, 18,  91 

Co. 

1.  E.  Potter  &  Com-  2, 19,  '91 

p'y- 

John  Greer 2,20,91 

Gleason  &  Comp'y  .  2,21,  '91 

John  Greer i  2, 27,  '91 

Dairymen's  Supply  2, 14,  '91 
Co.                             I 

H.H.Yard !  1. 15, '91 

C.  F.  Melonev 2, 1«,  "91 

I.  G.  Ranisdell 1, 17,  '91 

I.  F.  Portuondo 1, 17,  '91 

Ernest  K(Mlf«)rd 12,   3,  '«8 

O.  C.  Bosbysliell ....  1 12, 24,  '89 


Maturity. 


Doubtful, 


!  July    19,  '91  ! $.3, 109.  67 

July   19,  '91  ;     $:>0(t.  (Ml 


Worth- 
less. 


Julv  'JO,  "91 
July  21, '91 

May  22,  "91 

May  23, '91 

May  24. '91 

May  30, '91 

May  18, '91 

Mav  18, '91 
Mav  19, '91 
May  20, '91 
May   20, '91 

DeniHud 

...  do 


675.  (K» 
1.490.00 


Maurice  Landauer. . 

C.Haw 

D.  L.  Drew 

James  M.  Batters bv 
Dell  &  Jos.  C.  Nob- 
lit  &,  Co. 
G.  W.  Marsh 

D.  L.  Drew 

Horatio  G.  Kern 

John  LPyle 

E.  C.  Riihnioud  <fe 
Co.,  Lim'td. 


10,  31,  '89 
9, 23,  '90 

'  12, 12,  '90 
2, 28, '90 
2, 13,  '90 

11,  4, '90 
10,    6, '90 

3,  .-i, '91 
3, 17,  '98 
3,    7, '91 


207.  70 
40. 00 

UK).  00 
74.50 


293.35 


.  .do  . 
-do  . 
..do. 
. .  do  . , 
-do. 

.-do. 
-do  .. 
..do.. 
.  .<io  . . 
.  .do  .. 


4L18 
66.00 


200.00 

i,' 500."  66' 


I 


600.00 


2,  000.  00 
2.  500.  00 


1,  000.  00 


1,  210. 00 

900.00 
500.  00 


$965.00 


1,000.00 


8,  000.  00 


1,000.00 

j.ii 


81,774.85   78,887.49  144,630.77 


Schedule  A2.— Quarter  ending  Mar.  20,  1891— BiJU  receivahle  in  the  Jiands  of  the  re- 
ceiver of  the  Keystone  National  Bank  of  Philadeljjhia,  I'a. 


No. 


277 
278 
279 
280 

281 
282 

283 

284 
285 
286 

287 
288 

289 
290 
291 
292 

293 
294 
295 
296 
297 
298 
299 
300 
301 
302 
303 

304 


Maker. 


G.  W.  Aldrich  &  Int. 

S>hraim  Youuj; 
»rtin  Burke 

March  Jirownback 
Stove  Co. 

W.W.  Wallace 

T.  Hudso^ 

J.  McCulloujjh 

Mcllvain  &  Co 

J.  F.  Vanleer,  jr 

Isaac  H.  Evans 

H.  G.  Irvine 

Preston    Price,    part 
pay't. 

Morris  Spackman 

C.T.Davis 

Alpha  S.  Delussa 

F.  Strata  &  Son 

Rich'd  S.  CoUuni 

W.  S.  Emerson 

H.  Heilbronner 

Tho.s.  Little  diSon.... 
Kirk  Johnson  &  Co. . . 
0. 1^.  ^uiin ............. 

Thos.  Betts 

A.  Vanier 

Joshua  Jiartley 

Jno.  ().  Bowman 

Jas.  Hart 

F.A.Davis '. 


Endorser. 


J.  F.  Portuondo  . 
Ephraim  Young 
Jos.  Burke 


Date. 


1. 15,  '91 

11,17,  90 

12  20  '90 

Jas.  Dickson I    l]  19/90 

Central  Market  Co  . .     1, 20,  '91 

Wilmington  Dental    12,20,  "90 

Co.  i 

John  (ireer 

Ephraim  Young . . 
J.  F.  Vanleer,  jr  ... 

John  (Jreer 

L.W.Walsh 

Henry  McHugh  . . . 


Maturity.  I    Good,     Doubtful,    ^"'th 


D.  Oram  Young  . . . 
C.T.Davis...:.... 
Alpha  S.  I)ehi8.><a 

D.  &  J.  C.  Noblit  & 
Co. 

Rich'd  S.Collura  ... 

W.  S.  Emerson 

T.J.Dunn  &Co.... 

E.  S.  liortel  &  Co . . . 

H.  W.  (Jray 

C.S.Salin". 

J.  G.  Kamsdell 

A.  A.  Lowry 

•Toshua  Bart  ley 

•Johu  <).  Bowiuan. . . 
Wilmington   Dental 

Co. 
A.  R.  Thomas 


2, 21, '91 1 
2, 25,  '91  I 
12, 29,  '90 
2  27.  '91 
9,  29.  '90 
1,  30,  '91 


L  1,'91 

1.  1,'91 
3,  4, '91 

2,  2, '91 


3, 18.  '91 
3, 20,  '91 
2, 23.  '91 

3,  22,  '91 

3, 28,  '91 
3, 23,  '91 

.3, 26.  '91 
3, 28.  '91 

4,  1,'91 

3.  30.  '91 

4,  l.'Ol 
4,   3,  '91  ! 


36.  .18 
150.00 
282.00 
140.06  '. 

I 

50.16  I. 
70.02  i. 

85.00 
400.00 
100. 00 

50.  00 
100.00 
126.  07 


less. 


4,  4, '91  '  5.'>.00  |. 

4,  4, '91  50.00    .. 

4,  9, '91  3.000.  J)  ;.. 

4.  6. '91  4(5.44    .. 


1.    5, 

'91 

4.   8, 

'91 

2,   5, 

'91 

4,    8, 

'91 

12.   3. 

'90 

4,    6, 

'91 

2,   6, 

'91 

4,    9. 

'91 

6,28. 

'90 

3,31, 

'91 

1,   7, 

'91 

4.10. 

•91 

12,   8, 

'90 

4,11. 

'91 

2,   4, 

'91 

4,11. 

•91 

I '2, 10. 

90 

4.13. 

•91 

3.  10, 

'01 

4,i:{. 

'01 

12.   9, 

'<.M> 

4.12, 

'91 

12,  11, 

'90 

4.14, 

'91 

1(K).  00 

75.  00 

133.00 

40(».  00 

113.40 

50.  00 

].'»0.  00 

208.  25 

100.00 

1,  3'.  0  (0 

100.00 


I 


Schedule  A2— Quarter  ending  Mar.  20,  1891.— Bills  receivable  in  the  hands  of  the  re- 
ceiver of  the  Keystone  National  Bank  of  Philadelphia,  Pa.— Continued. 


No. 


305 
306 
307 
308 
309 
310 
311 

312 
313 
314 
315 
316 
317 
318 
319 
320 
321 
322 
323 
324 
325 
326 
327 
328 
329 
330 
331 
332 
333 
334 
335 
336 
337 
338 
339 
340 
341 
342 
343 
344 

345 
346 
347 
348 


Maker. 


Endorser. 


E.  R.  Bryan 

Quniton  Corwine  . . 

Abr.  B.  Paul 

W.  H.  Jones 

W.  W.  Ker 

Vicente  Poi'tuouno. 

F.  Strate&Son.... 


Geo.  Myers,  jr 

C.  M.  &  R.  Tompkins. 
Ivnn  Muller 

B.  F.  Hanc« 

C.  M.  &  R.  Tompkins. 
H.  T.  Morrison  &.  Co. . 

Gus.  A.  Muller 

C.  W.  Gerkie 

J.  Gallagher 

Thos.  Leary 

W.  H.  Hahn 

Jas.  L.  Brown 

H.  Heilbr<mner 

W.  T.  Merseran 

Jno.  J.  Cassidy 

F.  A.  Davis 

W.  B.  Hutchinson 

L.  B.  Manzon 

Willis  G.  Hale 

rre«l.  W.Nofer 

J.  G.  Gosch 

Herder  Cutlery  Co — 

H.  V.  Cleam 

J.  Rothschild 

William  Thorne 

Hugh  McNcile 

Thos.  P.  Toner 

H.  T.  Morrison  <fe  Co. 

Hugh  McNeile 

Hugh  McNeile 

P.  B.Homer 

F.  D.  B.  Richards  . . . . 
Chester  Co.,  G.  T.  & 

S.  D.  Co. 

S.  A.  Alexander 

Isaac  B.  Manger 

Isaiah  Bender 

Jno.  Donahue 


Arthur  J.  Smith  ... 
Wm.  R.  Murphy  . . . 
Central  Market  Co  . 

J.  V.  Fullawiiy 

.Jno.  S.  McKiiilay  . . 
Vicente  Portuondo . 
D.  &  J.  C.  Noblit  &. 

Co. 

Geo.  Myers.  Jr 

T.  J.  Dunn  <fc  Co  . . . 

Julius  Muller 

Wanamaker  &  Brown 
T.J.  Dunn  &Co.... 

McBride  Bros 

H.  W.  Kelsey,  treas. 

.T .  F.  Portuondo 

J.  Gallagher 

W.  Mc  Laughlin 

Central  Market  Co  . . 
Geo.  W.  Clothier.... 

T.J.  Dunn  &  Co 

W.  Galloway 

H.  A.  Cleverly 

W.  E.  Hering 

W.  B.  Hutchinson  .. 

W.  T.  AVilson 

Willis  G.Hale 

Fred.  W.Nofer 

.7 OS.  J.  McGin 

Herder  Cutlery  Co  . . 
Degerberg  <fc  Gausert 
J.Rothschild  <fcCo.. 
Central  Market  Co  . . 

H.  A.  Cleverly 

H.  St.  J.  Bra<\y 

McBride  Bros 

H.  A.  Cleverly 

do 
W.  E.  Hering 
F.  D.  B.  Richards  . . . 
Dairymen's  Supply 

Co. 
Showell  &  Fryer, 

limt'd 
D.  &  J.  D.  Noblit  &, 

Co. 
W.  T.  Wilson 
P.  O.  Neil 


Maturity. 


12, 10, 

'90 

1,14, 

'90 

2, 14, 

'91 

12,13, 

'IW 

1,16, 

'91 

3, 17, 

'91 

2,   2, 

'91 

12,  20. 

'90 

12.  t5, 

'90 

2,  18, 

'90 

1,20, 

'91 

12,18, 

'90 

2, 13, 

'91 

'2,24, 

'91 

1,23, 

'91 

2,25, 

'91 

2,  24, 

'91 

2,27, 

'91 

2.28, 

'91 

12,  2.3. 

'00 

2,  25, 

'91 

1,31, 

'91 

12,29, 

'91 

2,   3, 

'91 

1,   1, 

'91 

3,    4, 

'91 

3,    3, 

'91 

3,    6, 

'91 

3,18, 

'91 

3,   6, 

'91 

1,   5, 

'91 

2,   6, 

'91 

1,   7, 

'91 

1,   7, 

'91 

3,   4, 

'91 

1,   9, 

'91 

1.   9. 

'91 

2,    9, 

'91 

3,12, 

'91 

5,26, 

'90 

2,   9, '91 

2, 10,  '91 

1, 14,  '91 
2, 14,  '91 


4, 13,  '91 

4. 17.  '91 
4, 17, '91 
4, 16,  '91 
4, 19,  '91 
4, 19,  '91  ! 
4, 21, '91  i 

4, 23, '91 

4. 18,  '91 
4.  21, '91 
4,  23,  '91 
4,21, '91 

4,  n,  '91 

4. 27,  '91 
4, 26,  '91 

4. 28,  '91 
4, 28,  '91 
4, 30,  '91 

5,  2, '91 
4,  26,  '91 

4.  29,  '91 

5,  3, '91 
.5,  2, '91 
5,  5, '91 
5,  4, '91 
5,  6, '91 

5,  9, '91 
5, 21,  '91 
5,  8, '91 
5.  8, '91 
5,  9, '91 
5, 10,  '91 

5,  6, '91 
5, 12.  '91 


5. 14,  '91 
5, 29,  '91 


$93. 31 
100. 00 
101.07 
205.00 
100.00 
1,500.00 
46.43 

200.00 
250.00 
100.00 
1.  645. 10 
250.00 
500.00 
250. 00 
145.00 
150.00 
18L68 

69.95 
250. 00 
140.00 
200.00 
100.  00 
300.00 
200.00 

90.00 
200.  CO 
200.00 
200.00 
225.00 
110.00 
4,000.00 

64.55 

100.00 

200.  00 

1,  500.  00 

50.00 

50.00 
100.00 
200.00 
100.00 


D„„btM     ^^|- 


5, 10,  '91  i        75. 00 


5. 17,  '91 


57.85 

6L20 
167. 91 


I  .'S 


U 


24, 360. 03 


The  above  bills  discounted  were  paid  between  March  20,  1891,  the  dat«  of  closing  of  the  Keystone 
National  Bank,  Philadelphia,  and  May  18,  '91,  date  of  transfer  from  Wm.  P  Drew,  national  bank  ex- 
amines in  charge,  to  Robert  M.  Yardley,  receiver. 

Schedule  A3 — Quarter  ending  Mar.  20,   1891. — Bills  receivable  in  the  hands  of  the  re- 
ceiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


No. 


349 
350 
351 
352 
3.53 
354 
355 

:»6 

3.')7 

358 
359 
360 
361 


Maker. 


S.  S.  Dager 

Kirk  J()linson  &.  Co. 
J.  A.  Floersh  &  Co . . 

Mushier  «fc  Bro 

Kirk  Johnson  &  Co. 
W.  R.  McClellau  .... 
Kirk  .Johnson  &  Co . 

F.M.  Ilnlett 

S.I).  .Small  &  Co  .... 

Koger«,  Jones  &.  Moore 

Woolman  &,  Avis 

.1.  A.  Floersh  &  Co... 

ColliuA  &  Bro  

JjQo.  Smith 


Endorser. 


Robt.  Wooils 

H.  W.Grav 

T.  J.  Dunn  «fe  Co  . . . 

H.  W.Grav 

R.  W.  McClellau  . . . 

H.W.(Jrav 

VV.  H.  Bouer  &  Co  . 
D.  <fc  J.  D.  Noblit  & 

Co. 
T.  J.  Dunn  &l  Co.  . . 
McLear  «fc  Kendall. 
T.  .1.  Dunn  &  Co 

...do 

McLear  &  KeudaU  . . 


Date.    jMatui'ity, 


2,  13,  '91 

7, 16,  '90 

11,13, '90 

11. 17.  '90 

11. 18,  '90 
12,  22.  '90 
11,  22,  '90 

1,22, '91 
12.23, '<X» 


11,20. '90 
12.  29,  '90 
..4JL28. '90 
12,    1,  90  , 
12, 31, '90  i 


3. 18,  '91 

3. 19,  "91 
.3, 16,  '91 
3,  20.  '91 
3,  21, '91 
3,  25,  '91 

3. 25,  '91 

3. 26,  91 

3.  29,  '91 

4.  1,'91 

3,  31, '91 

4.  4, '91 
4,   3, '91 


Gowl.     Doubtful. 


Worth- 
less. 


.$200.  00 
243.  00 
255.00 
14.'>.00 
255. 15 
300.00 
2.")5. 15 
25.  40 
.'>5.  2.'» 

290.  (K) 
125.00 
280.  00 
120.00 
200.00 


m 


A 


260 


• 


•■< 


INVESTIGATION   OF   NATIONAL   BANKS. 


i!    ' 

■ 

5 

j     ' 

1 

i 

J 

. 

1 

, 

n  ' 

9 

! 

\ 

' 

Schedule  kZ,~quarter  endim,  Mar.  20,  1891.— Bills  receivable  in  the  hands  of  the  re- 
ceiver of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. -Continued. 


No. 

Maker. 

Endorser. 

SfKJ 

A.W.Turner 

T.J.Dunn  &  Co.... 

304 

M.  Tofts 

....do 

365 

I).  S.  Simmons 

do 

300 

J.  B.  Dumphy 

Dairyman's  Sui»ply 
T.  J.  Dunn  &  Co  . . . 

367 

IIarr(»lHon  Bros.  &  Co  . 

368 

J.  A.  Wilson 

E.J.  Martin 

360 

Allen,    DiimaH    & 
Thom{)H<m. 

T.J.  Dunn  &Co... 

370 

W.  J.  Thompson 

Boyd,  White  &.  Co.. 

A'il 

Allen,    Dumas    & 
Thompson. 

T.J.Dunn  &  Co 

372 

J.  H.  EnuTMou 

D.  &J.D.Nol.litt& 

Co. 
T.  J.'Dunn  &Co.... 

373 

Lee,  Wolfe  &  Bro 

Date. 


12,  1,'90 
12,  6, '90 
12,   6, '90 

2, 18,  '91 

12.  20,  '90 

1,  21,  '91 

12,  20,  '90 


1.   2, '91 
.   12,31, '90 


2,   3, '91 


12, 27, '90 


Maturity, 


4,  4, '91 
4,  9, '91 
4,  9, '91 
4, 21.  '91 

4, 23, '91 

4,  24,  '91 
4, 23,  '91 

5,  5, '91 
5,   3, '91 

5,   7, '91 

4. 30,  '91 


Good. 


$280.00 

142.50 

290.00 

64.38 

290.00 
KM).  00 
280.00 

i.06:{.:{7 

280.00 

86.77 

300.00 


Doubtful. 


Worth- 
less. 


5, 925. 97 


M?i.h*J.    oiM«  "f  "r"**^*^  w..n>  seiit  to  other  banks  f.»r  ,;ollection.  and  charged  to  them  lM.<Aveen 
March  20,   9),  the  date  of  rlosiuff  of  Keystone  Nati<mal  Bank.  Phih...  and  date  of  transl"r  from  Wn, 
r.  Drew,  national  hank  examiner  in  charge,  to  Robert  M.  Yanlley,  re<eiver  ^»''*n«'»^r  «rom  W  m. 

Summary  of  bills  discounted  in  the  hands  of  the  receiver  of  the  Keystone  National  Bank  of 

Phdadrlphia,  Pa.,  March  20th,  1891. 


As  shown  by  schedule  marked  A\ , 

As  shown  by  schedule  marked  A2 

As  shown  by  ai;hedule  marked  A3 


See  Schedule  H,  with  C.  H.  as  collateral  for  loan. 


Good. 


$81,774.85 

24, 360.  03 

5,  925.  97 


Doubtful. 


$78, 887. 49 


Worthless. 


$144,  630.  77 


112,060.85 
182,319.60 


294, 380.  45 


78,  887. 49 
293, 76;i.  80 


144,630.77 


372, 651. 29 


144, 630. 77 


Schedule  n-Quarter  ending  March  20,  I801.-Bills  receivable  in  thehands  of  the  Clear- 
ing House  Association  as  collateral  for  loan  to  Keystone  National  Bank,  loan  ^. 


Date 
due. 


1891. 
Mar.  14 
18 
21 
21 
21 
21 
22 
22 
23 
23 
23 
23 
23 
23 
23 
23 
24 
25 
25 
25 
25 
25 
26 
26 
27 
27 
28 
2» 


Eli  Funig&Co 

H.  Van  Biel 

Geo.  H.  Kobler 

Thos.  Bennet 

H.  Van  Biel&Co 

Aman  &  iiro 

B.T.  Cooling 

Patrick  O'Neil 

W.  H.  Mover 

do  ..." 

Robert  Craisey 

A.  G.  Cleramer 

Kobert  Cams 

Henry  Zaun 

T.  K.  Warman 

C.  Carpenter 

Jos.  T.  Harrison 

Jno.  McMenony 

H.  B.  Driver  .'. 

Harry  P.  Schrader 

Martin  Wilson 

B.  K.Ksler , 

Hugh  Graham , 

Saiu'l  M.  Kahu 

('oxe&  Son 

Peter  A.  (}uo«l 

Jno.  B.  Allen 

Cbas.  B.  Calwell 


End. 


Good. 


•  •  •• «  « 


A .  Falkenan 

H.VanBiel 

McLear  &.  Kendall 

do 

H.  VanBiel  &  Co 

K.  Q.  (Jibbiui 

Jos.  N.C»>oliug 

Cbas.  O'Neil... 

Jas.  R.  White 

do 

C.  H.  Kendrick 

J.  G.  Kamsdell 

R.  Cams   

Central  Market  Co 

H.  H.  Yard 

J.  A.  Wilson , 

Jno.  Casey 

ITenry  McHugh . .' 

Jno.  N.  Driver 

Jno.  Gallowav , 

W.  A.  Gearv". 

Phila  Towef  Sup.  Co 

H.  (irahain  <V  Son 

Sam  Kahn 

C.  C.  Farr 

McLear  A  Kendall 

W.T.Wilson 

L.  R.  Colwell  &  J.  Huntex. 


Doubtful. 


$1,500.00 
500.00 


1, 000.  00 
375.00 

i,  666. 66 


$200.  00 
150.00 


Worth- 
less. 


iJOO.OO 


600.00 
375.00 


4,  797. 09 
1, 428. 61 


1,000.00 

225.  00 

2. 000. 00 


450.00 


278.80 

i,  666. 66 

rm).  00 

8U0.00 

150.66 


576.  40 

i,  666. 66" 

800.00 
666.' 67' 

275.66' 

3, 000. 00 

INVESTIGATION  OF   NATIONAL   BANKS. 


2G1 


Schedule  H.— Quarter  ending    March  20,    IS'Jl—BilU   rernvahlc   in   the  hands  of  the 

Vtearing  House    tf>so(  iatiifu,  etc. — Continued. 


Mar.  28 
28 
29 
29 
30 
30 
31 
31 

Apl.     1 

1 
1 
1 
1 
1 
1 
1 
1 
2 
3 
3 
3 
3 
4 
4 
5 
5 
5 
5 
6 
6 
6 
6 
7 
7 
7 
7 
7 
7 
7 
9 
9 
9 
9 
9 
9 
9 
10 
11 
11 
11 
11 
12 
12 
13 

13 
13 
13 
13 
13 
13 
13 
14 
15 
15 
15 
15 
15 
15 
15 
15 
16 
16 
18 
18 
18 
18 
18 
18 


Wanamakei-  &.  B 

H.  Van  Biel  &  Co 

Sea  Girt  L.  &  Imp.  Co 

E.  Young 

W.  J.  Jackson  &  Co  . . 

Henry  Baunner,  jr 

E.  D.  Miller 

Thos.  E.  Wauvan 

A.  H.  Butterworth 

Excelsior  Hasy  Co 

Thos.  H.  Parks 

Jno.  Love 

Noblet.  Bros.  &  Co 

Jacob  D.  Lit 

B.  K.  Esler 

W.E.Allen 

Chas.  W.  Glenn,  sr 

J.  H.  Hathaway  <t  Co 

Am  Zaue '. 

Coxe  &  Sons 

Phillip  Catfrey 

Ja4'ob  Mevers 

H.W.  Avis 

T.  Pearson 

H .  Ghesuon 

J.  D.  Jones 

Wm.  Galloway 

Jas.  R.  Thompson 

Jas.  T.  Caul ti eld 

David  Hood 

E.  D.  Daugherty 

Geo.  Laury 

Oldacb  &  Co 

11. J.  &G.  R. Crump... 

do 

do 


J.  K.  Shoemaker 

B.  A.  Hertfich 

G.  F.  SchoUer 

F.  A.  Davis 

Jno.  O.  Bowman 

B.  K.  Esler 

Jos.  H.  Clarke 

W.  J.  Simmons , 

Phila.  Car  &  H.  Co 

J.J.  Pvle 

Oliver  H.  Dair 

W.  J.  Jackson 

Ellen  S.  Toplis 

Henry  Cuhneny 

E.  D.  Tupuby 

D.  M.  Stockliouse 

Jas.  B.  Harnier 

C.R.  Calwell 


Sam.  Black 

Wm.  Smith 

Henry  C.  Keys 

Benj.F.  Rose 

H  K.Stewart,  M.D.  . 

L.  H.  Patterson 

Jno.  Kinney 

Excelsior  Hos.  Co 

W.  J.  Jackson  &  Co 

Jno.  G.  Salter 

S.iml.  J.  Dickey 

Frank  E.  Morse 

W.  Geist 

M.Gallagher 

F.  O.  Goo<lwin 

W.  J .  Thompson 

B.  F.  Banes 

David  Guler 

Tim  J.  Donahue 

W.E.  Herring 

E.E.  Rock  well 

M.  M.  Copi>uck 

W.B.  Price 

Ed.  C.  Hill 


Wanamaker  »fc  B 

H.  Van  Biel  &  Co 

SeaG.  L.  &  I.  Co 

E.  Young 

R.  A.  Jackson 

Geo.  AV.  Clothier 

Rich.  Miller , 

H.  H.  Yard 

T.J.  Dunn  &  Co 

Ex.  Har  Co 

H.H.  Cleverly 

Jno.  Love 

D.  J.  C.  Xoblet  &  Co 

Le(m  Isaacs  &  Co 

Phila.  Towel  Sup.  Co 

;  H.H.  Yard 

I  Jo.s.  Seddon  &  Co 

'  E.  S.  Bartel  &  Co 

i  Jno.  W.  Ward  <fc  Co 

C.C.Farr 

I  H.  McHugh 

J  acob  Meyers 

I  Dockyue  &  Peunypacker  . 
I  C.  A.  Pearson 

McLear  &  Co 

E.  S.  Richmond  &  Co 

W.  Galloway  2^tpd 

Jno.  J  Pvle 

T.J.  Dnnn&Co 

J  no.  J.  Pvle 

■J      •' 

Walter  H.Lnlf 

Philip  Loury 

F.  A .  Da\  i.s 

H.J.&(;.R.  Crump 

do 

do 

J.  K.  Shoemaker 

G.W.  Clothier 

C.  B.Reese  &  Co 

A.  R.Thomas 

Jno.  O.  Bowman , 

Phila  Towel  Sup.  Co 

Henry  McHugh 

W.J.  Simmons 

W.  D.Rogers 

J  no.  Munroe 

R.  A.Jackson 

Geo.  W.  Hopkins 

Jno. Craig&  Son 

Trymby,  Hunt  &  Co 

J.  W.  liougJiton 

W.R.  Murphy 

Laura  R.Calw  ell  ;J. Hunter, 
agt. 

Henry  M.  L.  Hugh 

Jno.  F.  Kerbaugh 

H.C.Keys.... 

R.M.Wiley 

McLear  & "  Kendall 

E.  S.  Bortell  &  €o 

Jno.  Craig  &  Son 

Excelsior  Hos.  Co 

R.  A.  'lack.son 

S.G.Salter 

J.  Reynolds  A:  Son 

C.  F.  Schoolman 

McLear  &  Kendall 

M.  Gallagher 

E.  S.  Bortell  &  Co 

T.J.Dunn  &  Co 

J.  W.  Pepper 

Geo.  T.  Hitzel  <fe  Co 


H.  Me  Hugh 

W.  E.  Herrings  (pt.  paid) . . 

Bradley  Bros 

M.  M .  Coppuck 

US.  Bortell  &  Co 

Juo.Estel 


$2, 500. 00 
1, 100.  00 


200.00 

i25.66 

1,000.00 

i25. 66 


$5,000.00 
"3,' 367.' 29 


400.00 

1,  500.  00 

623.  .50 


1,  922. 00 

i,  856. 66 

300.00 


666.  67 
2,  050.  00 


225.  00 

285.  04 

500.  (Ml 

700.00  ! 

174.00  j 

1,.'>00.00  ' 

I  100.00 

100.00    

450.00  I 

181.30  i , 

.500.00  I  500.00 

250.00  ' 

268.92 

171.00  i 


200.00 
42.5. 16 


1,000.00 


t 


500.00 
345.00 
293.45 
2,  000.  00 
210.00 


175.00 

5,  000.  06 
5,  000.  00 
5,  OiiO.  00 


1,  500.  00 

366.66 

756.66 

200.  00 

3,000.00 

i56.'66 


400.  00 
300.  00 


150. 00 
269.  81 
475.00 


666.  66 
252. 62 
250. 00 


510.00 
'3,' 327.' 42 


600.00 

3,066.66 

468.78 


100.00 


380.  00 
500.00 
175.00 
12.').  00 
50O.  00 
100.  00 

1,  482.  50 

2,  500.  00 
1,  586.  76 


1,500.00 


425.  50 
129.92 


720.  00 
3,  063.  02 


504.80 
500.00 


247.  33 
800.00 


?:■' 


262 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


263 


SCIIKDII.K    H.- 


•Qnar(€r   enil'nnj  March  ;?/?,   As")/,  hllh  recnrablc  hi    the    hand^  of  the 
Cleuring- House  Jsmciai'ton,  ilv. — Contiuucd. 


SCHEDITLK     H.- 


■(Jiuirtn'   oidhiff  March    W,    ISf'/,  hills  rcvchahh-  hi   the  haiidx  of   the 
Cleurtng-Moutsc  AntfoaialioH,  etc. — Con tiiiiuMl. 


Date 
due. 


^■1 

1 

''I 

■It 

i 

.1 

\ 

:t. 

i 
it 

1 

! 

f 

1 
i 

Apr. 


May 


Apr. 
May 


18 

18 

20 

20 

20 

20 

21 

21 

21 

21 

21 

21 

22 

22 

22 

22 

22 

23 

23 

23 

23 

24 

24 

24 

25 

25 

27 

27 

27 

27 

29 

29 

29 

29 

30 

30 

30 

30 

30 

1 

2 

2 

2 

2 

2 

2 

2 

2 

2 

1« 

3 

3 

3 

3 

4 

5 

5 

5 

5 

5 

5 

5 

5 

5 

5 

5 

b 

5 

5 

6 

6 

6 

7 

8 

8 

8 

8 

8 

9 

9 


F.  "W.  I^awrence 

W.  IJ.  (lr«'«M- 

S.  Artlmr  Love,  treas 

Jiio.  B.  l>yott 

W.  H.  Meyers 

R.  Hnzar({ 

W.  J.  Jack80u  6c  Co 

0.  (J.  ClenuiHT 

H.VanHeil  &  Co 

W.  J,  Juiiksou  &  Co 

S.  W.  Montgomery 

R.  Hamilton 

1.  Taylor  &  Sou 

McMiillin 

H.  W.  Kelsey,  treas 

B.  ¥.  Banes 

Jno.  Truitt 

Mc  Bride  Bros 

B.  K.  Ksler 

J.  O.  Bowman 

W.  J.Kollv 

R.  W.  St«M'l»' 

E.  Sattertliwait 

J.  M .  CronuTieux 

Rich.  M  iller 

J.  Breiscli 

G.  W.  Keudrick,  jr 

B.  F.  Bam'8 

G.  W.  Clotliier 

L.  K.  E.sHty,  M.D 

H.Van  Beii  <fc  Co 

R.C.Horr 

Chas.ONeill 

D.  A.Rea 

E.  L.  Menamin 

B.K.EsUr 

Jacob  Zei^ler 

F.  W.  MiufiJithroyd 

\V.B.  Murphy 

J.  B.  HtMker! 

J.  R.  Mrlutire 

T.  A.  Davis 

Geo.  R.  Cninip 

C.C.Farr 

Exfelsior  Hos.  Co 

v./ •  v> •  f  <lrl'  ................. 

Wni.  Petry 

Jno.  J.  Pyie 

Amos  Ellis 

J.  S.  Miller 

Geo.  W.  ( 'lose 

C.J.That'clier 

W.W.Jae«m'tt 

Kil.se V  O.  Bath  Co 

(ieo.  C.  Black 

B.McHngh 

F.A.Davis 

Jno.  C.  Allen 

•Iame.s  McMenomy 

Kuivernck  &  Wjinier 

F.J. Todd 

Edgar  M.  Black 

Otto  Woand 

Jas.  M.  Canlticld 

Jos.  M.  J  irt  le 

Jame.'4  T.  W ilson 

Wni.  MarHhiill j 

T.  A.  l>avi«.  treas 

Guy  C.  Walraveu,  trust  . . .' 

S.  Bunting  &  Co , 

H.J.  A-  (J. R.  Cramp ! 

B.K.Esler I 

H.  P.Connell ! 

W.S.Wolford 

T.  Henry  Sweeting ! 

Boughton  6c  Willger 

C.  Henry  Marshall 

i>* \j*  xarr.  •....-.*•••••.•, 

H.  H.  Bingham 

Jos.  H.Clarke 


End. 


J.  W.  Boughton. 


CrOOd. 


$200.00 
236.  44 


225. 00 


1,  000. 00 


200.00 


200.00 
1,000.00 
1.500.00 
5, 000. 00 


1.500.00 


H.McHugh 

Jno.  (Jreer 

McFadden  &  Co 

C.  H.Kitler 

Phillip  Lowi-y , 

AiiH.  B.  Patterson 

R.  A.  JiM-k.son 

I    G.   Kamsdell 

H.  Van  lJeil&  Co 

R.  A.  JiH-kson 

(i.  E.  Dearborn 

R.  H.  Goitlon,  treas 

I.  Tavlor  &'  Son 

Chas:  O'Neill , 

H.  W.  Kelsey,  treas 

I.  W.  Pepper , 

Kyle,  B«^rry  Sc  Co.,  Liv  . . 

M  e  Bri<le  Bros 

Phila.  Towel  Sup.  Co 

J.  O.  Bowman 

Jno.  Craig  Sc  Son , 

R.W.Steele   

E.  Sattoi-thwait 

(Jeo.  Goodfellow  &S 

I{.  AI  iller 

AV.  A .  Geary 

C.  H.  Ken<lrick 

I.  AV.  Pepi>or 2,  (MW.  00 

(J.  W.  Clothier 700.00 

J.  McLaughlin ' 

H.Van  Beil  &  Co 1,100.00 

R.  C.  Hon-  &  Co :{20. 00 

Pat  O'Neill ,      1,200.00 

H.McHugh ■ 

G.  J.  Conly j         350. 00 

Phila.  Towel  Sup.  Co ' 

H.McHugh I 

Chas.  O'Neill 101.  50 

J .  O.  Bowman ! 

J.  Craig  &  S<m |         249.50 


Doubtful. 


18.5.00 
125.00 


1,0<M).00 
250. 00 

1.  000.  00 
271. 69 
500.00 


A.  R.  Thomas 2, 000. 00 

(i.  R.  Crump 

C.  C.  FaiT 

Excelsior  H.  Co 

C.  C.  Farr 

R.  M.  Braithwait  &  Co 150. 00 

J.  G.  Pyle 

Amos  Ellis '      2, 500. 00 

J.  Miller 475.75 

Geo.  W.  Close 

McLear  <fc  Kendall 300. 00 

Showell  &  Fryer 

Kilsev  O.  Bath  Co 500. 00 

Jos.  Field 500. 80 

H.McHugh 

A.  R.Thomas i      2.(KK).00 

Jno.  T.  Hillmau I  3(H}.  00 

H.llcHugh 

Jos.  IJ.  Fields I  500. 00 

Geo.  E.  De^rlxirn 225.  00 

C.  A.  Kingsbury i  100.  (K» 

La  Roche  &  Staid |  320.  IH» 

T.J.Dunn  6c  Co j  268.92 

C.  Burke 350.  00 

J.G.Salter  (part   paid) '         200,00 

Jos.  T.  Kerbaugh ' 

W.  S.  Griffith  &  Co |         750. 00 

G.  A.  Walraveu 1.  500. 00 

S.  Btiuting  6c  Co.  (pt  paid) . .        5.  tK)0.  CO 

Walter  N  vda  v '  125. 00 

Phila.  Towel  Sup.  Co ' 

G.  W.Shirlev :{50.  00 

W.  S.  Wolfofd 600. 00 

T.  H.  Sweeting 5,000.00 

J.  \V.  Boughton 

La  R<Hhe  &  Stahl 270. 41 

C.C.Tarr 

H.U.Bingham 750.00 

Heur>'  HcHugh 


$654.  74 


1. 952.  56 

2,  000.  00 
1,  080.  00 
1,  OlH).  00 


800.00. 


i  300. 00 

I  21*.  00 


551.  80 


401.99 


5.50.  00 
366.50 


475.  00 
752. 49 


2, 000, 00 


1,  000.  00 
252.02 


Worth- 
lees. 


1 

1,875.00 

3.'>0. 00 

••.••• 

2,209.87 
100.00 



1,063,83 

500.00 

101,50 

635.33 

250.00 

111.88 

420. 74 

712, 18 

202.  2:j 

317. 16 

650.00 

May  9 
9 
9 
9 
9 
9 
9 
11 
11 
11 
11 
11 
12 
12 
13 
13 
13 
14 
14 
14 
16 
15 
15 
15 
15 
15 
15 
15 
18 
19 
19 
20 
20 


20 
20 
20 
21 
22 
22 
22 
22 
22 
23 
23 
23 
23 
23 
25 
25 
25 
25 
25 
25 
26 
26 
27 
27 
30 
30 
2 


June 


2 
3 
3 
3 

5 
5 
5 
5 
6 
6 
6 
8 
8 
8 
8 
8 
8 
8 


W.  Petry 
Jacob  C.  (-assel 

J.  J.  Pyle 

Vicent«!  Portuondo 

U.S.  Waite 

Thomas  Little  &  Son 

U.McNeille 

A.  S.  l)e  Li.sse 

A.  G.  Clemmer 

E.S.Pooley 

Jesse  W.  ( Jerhart 

Ho>vard  A.  (Hiase 

Hall  &  ( JaiTison 

Hei*man  Wendall 

W.H.Mitchell 

Mrs.  H.  G.  Schwartz 

Bradford  Hill  &  Co 

C.C.Tarr 

W.  J.  Simmons 

E.  Satterth wait 

John  Connelly 

D.  M.  Stackhouse 

Sam'l  Harrison,  jr.,  6c  Co... 

B.  F.  Banes 

Wra.  Petrj' 

Madam  L.  Vauent 

Viciente  Portuondo 

Jno.  J.  Pyle 

W.  W.  Apsley,  prest 

Jno.  ConiU'Uy 

Jas.  Riley 

Geo.  Fox" 

S.  Kirk  Patrick 


G.  J.  Richardson,  ex. . 

Peoples  <fc  Bro 

W.R.  Murphy 

Price  J.  Patton 

E.  Hodges 

S.P  M.  Fo.sker 

Excelsior  H.  ('o 

Granville  B.  Haiues. . 

AVm.  Petry 

Mme  L.  Vaunt 

Chester  L.  Smith 

C.C.Tarr 

Pooley  Bros 

J.  M.Roning 

Thos.  J.  Martin  &  Co 

A.  H.  Moore 

F.A.Davis 

G.W.  Keudrick,  jr... 
Robt.  Voucher 

B.  M.  Stockhouse 

F.A.Davis 

E.D.Tuymley 

F.  A.  Davis 

G.C.Hetzel 

Thos,  Warman 

L.  F.  Borarf  A:  Co  ... . 

Jno.  R.  Shulev 

H.J,  &G.R.t!^urap.- 
Wanamaker  &  B 

A.  S.  Dc  Li.sse 

Wm.  M.  Flood 


R.  M.  Braithwait  6c  Co 
La  Roche  6c  Stahl 
J.  J.  Pyle 
V.  Portuondo 
J.  L.Galloway 

E.  S.  Bortell  &  Cu 

D.M.  Carthur 

A.  S.  De  Lisse 

J.  G.  RauLsdell 

Pooley  Bros 

H.  B.  Krew.son 

R.  G.  Chase  6c  Co.  (pt.  paid) . 

G,C.  Walraveu 

"Vendall  &  Co 


490.00 
700. 00 
2,  000.  00 


Showei;  6c  Fryer 
N.  F.  Fhans.l... 

C.C.Tarr 

AV.  J.  Simmons ... 
E.  Satterlhwaite 
H.  McHugh 


200.00 
1,. 500. 00 

400.  00 
3,  (too.  (H) 

400.  00 

162.  00 
2,  000.  00 


200. 00 
2,  500. 00 


1,500.00 


1,000.00 
275.00 


J.  W.  Brougjjton 


1, 000. 00 


Excelsior  H.  Co 

Jos.  Blackowski,  atty 
Jacob  J.  Plucker. . . . . 

Jo.s.  F.  Caulfield 

J.J.Connor 

J.K.Rishel 

J.  F.  Portuondo 

R.C.Horr 

G.W.Kucker 

R.C,Horr 

Michael  O'Rourke  . . . 

McBride  Bros 

Jno.  U.  Miles 

W.  Rhodes 


J.  F.  Hai  risen 

J .  W.  Pei>per  (pt.  paid) 

R.  M.  Braithwait 

Mad  L.  Vaunt 

V.  Portuondo 

J.J.  Pvle 

E.  C.  Ri<lnn<>nd  «fc  Co 

H.McHugh 

H.J,  &G,R.  Crump , 

Geo.  Fi)x 

A.  H.  Mot>re 

I).  6c  J.  (\  Noblet  6c  Co,  (pt. 
]>aid). 

K  vie.  Berry  &  Co 

\\*.R.  Murphy 

P.J.Pattou  -■- 

J.  G.  Ramsdell 

N.F.Evans 

Excelsior  H.Co 

(t.  B.  Haines 

R.  M.  Braithwait  &  Co 

Mme  L.  Vaunt  (pt.  paid) 

Wauamaker  6c  B 

Pooley  Bros 

Geo.  W.Oliver 

Isaac  Taylor  &  S 

A.  H.  Moore 

A,  R,  Thomas 

C.H,  Keudrick 

J,  W,  Balcora 

do 

A.  R.  Thomas 

Tuvmley  Hunt  6c  Co 

A.  R.  Thomas 

(i.e.  Hetzel  <fc  Co 

H.H.Vard 

J .  Siddons  &  Sons 


775. 12 
500.00 


650.45 
900,00 
200.00 
724.88 


400.00 


2. 500. 00 


1.50.  00 
100.00 

302.72 


1, 000.  00 
771.48 
600.00 

4,  000.  00 
200.00 


25L00 


1,000.00 


2,  750. 00 


1,000.00 
1.50. 00 
750. 00 


300,00 
1, 900.  00 

375.  00 
5,  000. 00 


1,140.00 
400,00 


2, 000. 00 
600.00 


2, 000. 00 
3, 000.  00 
2, 000.  00 
5, 000.  00 


H.Van  Beil  &Co 

Wanamaker  «fc  B 

A.  S.  De  Lisse 

E.  R.  Bryan,   L.  Schuster 
Pioreaf, 

Excels.  H,  Co 

La  lliK-he  &  Stahl , 

AV.  Phil.  Brick  Co 

T.J.  Dunn  6:  Co 

F:.  M.Cooper. 


A.  C.  Rishel.  (ntpaid).... 

J.  F.  I'ortuondo 

R.C.Horr&Co 

do 

d<. 

M.O'Uourke 

Mc  Bride  Bros.  (pt.  paid) 

H.McHugh 

Matthew  Hall 


550.  00 

110.00 

2,  500.  00 

5,  000.  00 

1,  000.  (K) 

102.00 


130.00 

1,000.00 

2(«.  91 


200.JU0 
5, 000. 00 
900,00 
300,00 
470.00 


300.00 

540.  00 

1,000.00 


150.  '66' 

1.000.00 
3,000.00 

! 

1,000.00 

375.66 
800.00 

1 

1 

1,  900. 00 

400.00 

1 ■■ 

348.00 

530.00 

1,900.0C 
2, 300. 00 

2,110.21 

2, 700. 00 

i 

2(54 


INVESTIGATION   OF   NATIONAL   BANKS. 


SciiKOiTLE  H.— 9,ujr/<r  emlin;,  March  :J0,  mi—Hilh  trveirahle  in  the  hmids  of  the  Clear 

iiiff-Hovfte  Jssodatiofi,  c/c— Continued. 


Date 
due. 


June  10 
10 
10 
13 
i:i 

13 

13 

13 

11 
11 
11 

21 
24 
24 
24 
27 


29 


July     1 

1 

1 

4 

4 

9 

10 

18 

Nov.  18 


I 

s 

I 


Whiniell  W.  (^oxe 

G.W.  Smith  \  Co 

Wilson  E.  Allen 

A.  H.  Moore 

do 

Chas.  H.  Din  Is 

H.  K.  Stowarf.Md 

Brail fV.rd  Hills  Land  Co. . . 

Po.sh^  V  Hros 

Jiis.  Ivtilly 

Geo.C.Hetzel 

Jug.  J.  Pvle 

Jas.  D.  Tlioni])son 

Van  Gunder  «fe  Young 

R.  A. Ja<k8on 

Hoflick  <fc  Wilson 

Geo.  C.  Hetzel 

Bonghton  A  Sonvillige ' 

G.  W.  Smith  &  Co 

Van  Giinder  &  Vounji 

G.  W.  Kcndrick,  jr..    ' 

F.  W.  Walton  &  Co 

H.  J.  <fe  (}.  R.  ('rumn i 

W.  H.  Tliornton 

Henry  M.  Dixey 

Excelsior  Ho.siery  Co I 

,  S.  Bnntinjj  Sons '&  Co i 

!  H.J.  &G.  li.  Crump i 

Sehwaoher  Piano  Co I 

A.  H.  Moore i 

Jos.  F.  Field I 

B.MeHu-h ;;i 

S.  P.  M.  Tiwker I 

H.C.Ball I 

do I 

G.  D.  Philan '....X 

J.C.  Wyman 

Geo.  (^'unimins; 

j.j.i'.vK'... ::;: 

G.  B.  Haines  &;  Co 

S.  S.  Garwood I 

L.  C.  G  rojjen^jeiser ! 

S.  Nels«»n  l>avis I 

Marv  P.  Loyan 

Bem.  Seiser : 

S.C.<;askill 

M.  N.  vvo(m1s ."";;| 

G.  E.  (^unimiug '. 

David  < iarrison .1 

C.  A.  Bradeuberj: I 

H.H.Taui....:'. ;:| 

J.  C.  Lnras ' 


End. 


Good. 


H.J.  &G.R.  Crump., 

Geo.  E.  Dearborn 

H.  H.Yard 

A.  H.  Moore , 

,  do 

j  C.  H.Davis,  ]tt.  paid., 
I  M<"Lean  \  Kendall... 

1  Nelson  F.  Kvans 

:  Pooh'v  Bros 

I  H.d.k  I.  It.Ciump... 
I  G.C.  Het/el&Co.... 

'  J.J.Pvle 

!  H.  Fillev  &  Son 

N.  S.  Evans 

AV,  J..ra«'kson 

lioyd,  W.  &  ( ;o 

G.C.Hetzol&  Co.... 

I.  W.  Bon«rhton 

(J.DearlMMii 

N.F.Evans 

C.  Kondriek 

F.  W.Walton  &  Co... 

C.  B.  Iteesp  «fc  Co 

J.  A.  Wilson 

K.  C.Hon 

Ex<'olsior  H.  Co 

S.  Bnntin;;  Sons  &  Co 
H.  J.  &■  (J,  K.  Crump. . 

H.W.iJay 

A.  H.  M«K»re 

Kendriek  &  Tramer. . 

H.M.Hugh 

N.  F.  Evans 

H.C.  Ball 

do 


Doubtful. 


Worth- 
less. 


$1,200.00 


1.565.87  I. 


8, 150. 00 

50.00 

125.00 

8(K).  00 


2,400.00 
2, 000. 00 

i55. 66 


200.00 


2,500.00 


1,  000.  00 
3,  500.  00 
5,  000.  00 
1, 000.  00 

1,650.66 

2.  500.  «10 


2,  <M)0.  <»0 
1,  'Mk  00 

500.66 
5,  000. 00 

8.^5.  .56 
500.  00 


5, 000,  00 
2,  500.  06 

1,020.66 


2  500.  (H) 

2,  800.  00 

500.  (;0 

67.').  00 


1,  350.  00 
4,  500.  00 


Total 


Schedule  B 


300,00 
700,  00 


182.319.60 


3.  300,  00 

701.31 

800,  V2 

l,!'0(l.  00 

1,000.00 

900.  00 

1,<KK>.  00 

5, 000,  00 

000,00 

90,  00 

800.  00 

1.000.00 

250.  00 

220.  00 

400.00 

950.  00 

2,  000.  00 

2, 000.  00 

50,  000.  00 

50.  000.  00 


293,  703.  80 


W.y.  .7/ir'.!""''"''7./^^",!^-  ^''''  ^''^^J--^''*'f^^  other  than  bilh  receirahle,  in  the 
hands  of  the  reeetrer  oj  the  Keffstont-  Xational  Hank,  of  Phihuldphia,  Pa. 


Date. 


18- 


Deaeription  of  assets. 


Good. 


$3.98 


Overdrafts  : 

Arthur.  R,  A 

Askiu,  H 

Amberlv,  (leo .'. 

Brady,  H. d  .'!.".*."."!.'.".'.' 

Bardslev,  .John 

Battersirv ,  J,  .M  .*!.".".*.'.'."!.'!!! 

Barron,  John 

B ra <1  fo i(  1 . .7 .  M '.'...'.'.'.'.'. 

Beaeh,  House 

Billen.C.K 

Bosbvsiiell.O.  C ". I  w  70  I 

Brown,  H .;; |  **• '"  1 

Brown,  Chas \\ 

Bowman,  H.  L.,  jr ■■.V"..V...V".V.. 


Doubtful. 


.05 


4.00 


$149. 99 
331.00 

i.  287.71' 
34,  088.  52 


Worthless. 


150.  78 
4,  879.42 


&;> 


27.69 


181.00 


18,30 


't;. 


INVESTIGATION   OF   NATIONAL   BANKS. 


/ 


265 


SciIKDCLK  B.— Quarter  endinff  Mar.  :*0.  fSOl— Assets,  other  than  Inlln  recrirabh,  h,  the 
hands  of  the  recdrer  of  the  hei/stone  Xational  Bank,  f/r.—CoiUiuued. 


Date. 


18- 


Description  of  assets. 


Overdrafts— Continued. 

Buckheister,  Fannie 

Burke,P,C 

Bureau  ('ar  Co.,  No.  1 

Crawford,  L,  F 

Catherine,  J.  W 

Cams,  Robert 

Canby,  (reo 

Collier,  Sarah  E 

Callioun,  Wm 

Collum,  R.  S 

Cumniings.  (i,  E 

Crump,  Sarah  R 

Crump,  H.  (J.  &  G.  R 

Crump,  John 

Davis,  Edw,T 

Dengler.  D.H 

Duskon.Jas 

Ellis,  H.C 

Greer,  J,  N 

Gliple,  Fre<l 

Gritiith,  Anna  E 

Goldberg,  G.  M 

Harrison,  Jos.  S 

Harrington,  E,  S 

Hawly,  Geo.  L 

Harris,  J.  Smith 

Haines,  C.  C 

Herdie,  F.  L 

Henling,  Wm.  H 

Hoyt,  S.  C 

Hoar,  R.  C.  &  Co 

Hummel,  A.  L 

Jackson  &.  Co.,  W.  J,,  ag'ts  . , 

Jones,  W,  B 

Krager,  A.  L 

Knauf  &  Co.,  F.  C 

Kenned  V,  M 

Kerbauh, F.J 

Kelsey,  H.  W 

Kennedy,  Jacob 

Kern.A.G 

Kinney,  Ada 

Kyle,Jno.  M 

Lee,  Hattie  Ij 

Longacre,  I.  D 

Longaker,  A.  M 

Lowry,P 

Leslie,  E.W 

Lowry,  A.  A 

Lucas,  J.  C,  est 

Lucas,  M.Elia 

Lucas,  Samuel 

Lucas,  Mrs,  J.  C 

Ly nek,  Anthony 

Mac  Afee,  J ,  B ' 

MacBride,  Mrs.  J.  W 

McConncll,  Wm 

McGlade,  Mary 

McKinley,  J.  S 

McGowan,A.H 

Matthews,  W.  W 

Merriman,  E.  C 

Miller.J 

Mitchell,  W.K 

Morgan  Bros 

Moore,  J.  A 

Moon,  Wm.H 

Mumper,  M,  A 

Nolan  Bros 

O'DonneU.E 

Pattison,  J.  B 

Patten,E.  W 

Patten,  J.  P 

Preston,  G.R 

Ridley  Building  Assoc'n 

Shaw,W.F....   

Sargeaut,  W.,  jr 

Stockton,  W.  A 

TJu-  Backus-Post  Heating  Co . 

Thomas, E,  W 

Unger,  A 


Good.      '  Doubtful.    Worthless 


$4.50 
.79 


2.72 
23. 25 


2.01 
23.49 

.9i 


3,  204,  32 

3.90 

40.27 

5.70 

3i,"i3 

30.30 

152.  05 

9.60 

17.35 

1.00 

5.00 


38.80 

134. 61 

1.18 

4,90 

1,210.68 

150.00 

11.28 

39.  32 

3.  .30 

222,  47 

240.  86 

3.50 

L80 

20,00 

86.>.  29 

1.00 

.23 

4.51 

.05 

21.77 

44.85 


36.03 


1.04 

9.07 

2.84 

2L00 

752.  84 

4.00 

.75 


70.  &5 
20,  46 

28.74 


19.80 
86.00 
46.19 


1.75 
378. 25 


.56 

1.00 

4.67 

9.84 

14.76 


$4,900.00 


1,  467.  33 


251.  89 


39,  32 
1. 198. 85 
7.811,33 
3.  772. 94 


499.37 


6,  078.  75 
270,53 


10, 359, 29 
11,744.94 


5,  309. 98 
2,655,82 


676. 14 


643. 34 
58.50 

535. 35 


2, 146.  26 
661.80 


238.96 


h 


.-!i 


ti 


206 


INVESTIGATION   OP   NATIONAL   BANKS. 


I 


SoilEiJUl.K  U.—Qiiaytcr  ciidhuj  Mar.  SO,  ISOl—AxHeis.  othrr  lh4tn   hUla  recHvuhh,  in 
hand-s  of  the  receiver,  of  the  Keyxfone  Xatioval  Hunk,  <7(;.— Continued. 


the 


Date. 


Description  of  assets. 


1»- 


OvHrtlraftn— Continued. 

Vion,  Jos 

Vineliiiul 

AV aiiamaker.  M.  B 

W'aiianiaker,  J  no.,  per 

Walker,  W 

Walker,R.H 

Wenrick.O.K 

Peals,  Hernion 

Paul,  D.  S 

Penii.  :!klat.  Elec.  Co 

Parker,  Nellie  C 

Pine,  Isaa<'  S 

Raw,  Wra.  H.  &Co 

Kankin,  Frances 

Uauiborf^er,  .\.D 

lleniington,  Pyne 

Kankin,  A.W' 

Ki«l(lle,  J.O 

Roberts.  J.  0.  K 

Smart,  Terrence  P.,  treas 

Starces.  Jess*'  W.,  jr 

.    Sanlord,  F.  If 

Sayres,  Jas.  W 

Shaw,  J .  H.,  ni'g'r 

Santa  Clara  Wine  Co 

Saxton,  D.B 

Steelman,  J.,  agt 

Shed  wick,  Geo.  W 

Stewart,  (i.  W..  treas 

Stewart,  David 

Simpson,  John 

Smith.  H.  Oscar 

StileH  &.  Fox 

Shirley.  J.  K 

Snowdcn.  Wni 

Sh«K"nakcr.  Mrs.  C.  K 

Schumacher,  IT.  C 

Southwell,  CM 

Scliuldt.J.F.  W 

Stolt /,.  Jacob , 

Talb«.t,  X.  W 

Pliila.  Hiirness  SujtplyCo. 

Toddintftou.  F.  J.  &  Co 

Thouii>sou.  Anna  K , 

Trcnholui.  Mrs.  A.H 

Torava.  Jo«ti 

Thompson.  (J.  A 

Van'devcr.  J.  M 

Watts,  H.l) 

WalUw'o,  Jno.  A , 


Good. 


i:t.  42 

5.29 


Doubtful. 


.29 

89.66 


.10 

"'.08 

5.24 


15 


Wear.J.R.  &Co. 
W«'bb.  Will.  C... 


West,  ('has 

Wilson.  Jos.  A 

Wliiting.  F.  H '!!".'.'.".'.".'.!". 

Wood.  C  A.,  trustee 

Petty  in  H  to  O  ledger,  not  aide  to  tind  record 

Sargi'iit.  \V.,.jr 

Auiouuts  due  bv  banks: 

Tnulesmen'kNat.  I{k,N.Y 

Chase  Nat.  I5k.  N.  V 

Citizens'  Nat.  Bk,  Baltimore 

National  JVk  Commerce,  ilostou  . . .' 

National  State  Bank.  Camden.  N.J 

Del.  ( :o.  Nat.  Hjiu  k,  Clu.'ster.  Pa 

Frt.  Dearborn  Xat.  B'k,  Chicago,  111 

J<Mrst  National  Bank.  Con.sholiocken.  Pa 

Second  Nati«Mi:d  Bank,  Frankford,  Pa 

Nat.  B'k,  Germaiitown 

Integrity  Title  Ins.  and  Trust  Co.,  Phila 

Jenkintown  Nat.  H'k 

1  Nat.  Bank.  Media.  Pa V... 

Merchants'  and  Manuf.  Nat.  B'k,  Pittsburg  . . . 

Northern  Savin^rs  Fund.  Phila 

Safe  Dep.Bank,P.)ttsville 

Keystone  Nat.  Bank.  Reading 

First  National  Bank,  Richmond.  Va 

First  National  Bank,  vSoranton,  Pa 

German  Bank,  Wheeling,  W.  Va 

West  Philad'a  Bank,  Phila 


.56 


1,757.32 
765. 02 

3, 0;')r?.  81 
778.  00 
980.  26 
392.  .52 

2,  793. 07 
25.  38 

4,4U2.  16 

1.  (52  t.  47 
216.  90 

58.50 
51.5.  23 

2.  535.  73 
297.  34 
202.  73 
493.  11 
263.  23 
340.  43 
428.80 
374.  79 


$49.50 


47.07 
85.4(1 


6.0C 


3.68 


Worthless. 


8.24  I. 


9.71 
28.38 


1.95 


2.66 


2, 659.  71 
26. 87 

"891.' 24' 


31.08 


4.10 

4.94 

87.54 

2.467.14 
(J4.00 
18.  01 
49.19 


197. 
57. 


00 
26 
13 


341. 47 


$46.82 


1.85 


2.0(» 


00 


24.83 

1.05 

100.77 


475.  71 
12i.l5 


70.91 
841.92 


1.00 

18.49 

.99 


1.00 


1,863.32 
10.00 


985.75 


496.81 


4.12 


4.12 
'2,'7i9.'77 


INVKSTieATTON   OV   NATIONAL    BANKS. 


267 


ScuiciX'l.K  H. — Qnarfrr  endintj  March  .'(>,  1891 — AhhvIh.  oihrr  than  hiUs  rereirahle  in  the 

hands  of  the  receive)',  etc. — C/Oiitinned. 


Date. 


18— 


2, 11,  '91 
3,1  J, '91 
9, 13,  '90 
2, 13,  '90 

5. 27,  '90 
9, 19,  '90 

10, 29,  '90 

2. 28,  '91 
2, 11,  '91 


3, 11, '91 
3, 17,  '91 


3, 
3, 
3, 
3, 
12, 

N(»v. 

Feb. 

Mar. 

Jan. 

Sept. 

Jan. 

Sept. 

Mar. 


12,  '91 
19,  '91 

18,  '91 

19,  '91 
15, '90 
15, '90 
11 

11 

],'91 
17 

3 
20, '90 

13,  '91 
13, '90 

18,  '91 

19,  '91 
13,  '91 

6, '91 
13,  '91 


Description  of  assets. 


Good. 


Doubtful. 


Amounts  due  bv  banks^ Continued. 

Farmers'  N'^at.  B'k,  West  Chester,  Pa 

Union  Nat.  Bank,  Wilmington,  Del 

N.  J.  T.  Af  L.  D.  Co.,  Camden,  N.  J 

Camden  Safe  De]).  Co.,  Camden,  N.  J.  (2,594.34). 
(Jash  items  from  dep.  made  3, 20,  91 : 
Deposit<n-s : 

J.  D.  Laws,  che<'k.  Drexel  &  Co 

City  treasurer,  check,  Drexel  &  Co 

Cit V  trr'asurer,  che<!k,  Keystone 

"       Do 

Do 

Do , 

Do 

Do 

Do 

City  treasurer,  check,  Keystone  (11,033.63) 

Country  che«-ks  from  dep.  made  3,  20, 91 : 
Depositors : 

Mrs.  E.  K.  Freeman,  New  J.  T.  &  L.  D.  Co 

City  treasurer,  Chicago,  Ills 

City  treasurer,  Frankford 

Do 

Do 

City  treasurer,  Gennantown 

Do 


Do 
Do 
Do 
Do 
Do 
Do 
Do 
Do 


City  treas..  Integrity  Trust 

City  treas..  Industrial  Trust 

City  treas.,  Manayunk 

Do 

City  treas.,  Media 

City  treas..  Northwestern  Nat.  B'k,  Phila 
City  treas.,  Northern  f^av.  F'd 

Do 

Do 

Do 

City  treas..  West  Phila.  B'k 

City  treas..  Tradesmen's  Trust 


City  treas.,  Camden,  2,8.55.93 
Cash  items : 

Protested  check,  L.  Dolmas,  Chester 

Check,  Jno.  Hayes 

Check,  S.  N.  Brbadbent 1 

Protested  check,  J .  H.  Longstreet,  pro.  fer 

Memo.,  J .  W.  Barron 

Protestetl  check,  L.  Groti'&  Co.,  end.  C.  McCilade. 
Protested  check.  H.  D.  ITolt,  end.  F.  A.  Mitchell . 
Protested  check,  E.Maguire,  end.  G.  W.  Clothier. 
Protested  check,  W.  A.  Barritt,  jr.  &  Co.;  end. 

Penn.  Granite  Co .' 

Protested  check.  And.  McClus,  end.  Jno.  Young . 
Prott^stetl  check,  Walter  H.  Smith,  end.  Geo.  J . 

Dugler 

Protested  check,  H.  Quinn,  end.  F.  M.  Love 

Protested  check,  E.  M.  Cooper 

l»rotested  check.  W.  F.  Shaw 

Memo.,  Jos.  N.  CV>oling 

Memo..  Wm.  Calh(»un 

Memo..  Wm.  Calhoun,  end.  D.  P.  S.  Nichols 

Do 

Note,  memo.,  J.  L.  Galloway,  end.W.  Calhoun,  jr. 

Memo.,  J.  MctJonnell / '. . . 

Memo.,  AV.  t^alhoun 

Memo.,  (i.  L.  Harvey 

Do!!!!]! !!!!!!!"!!!!"  ■"";!!!!]!!!!!"! 
Do 

Check,  J.  Kimble,  build,  account,  end.  J.  Rey- 
nolds, jr 

Memo.,  (i.  W.  Marsh,  pres 

Do 

Do 


$494. 87 

2,  205.  29 

205. 74 

679.04 


92.50 

262.  50 

178. 66 

10, 000.  0(1 

9.43 

14.  00 

83.00 

23. 40 

338.  58 

31.50 


15.  30 

374. 44 

113.  79 

6.05 

56.00 

11.75 

28.  26 

45.00 

200.  00 

7.40 

108. 80 

335. 95 

43.50 

82.  00 

90.  00 

26.00 

60,00 

74.00 

22.  25 

8.00 

7.50 

158. 80 

37.00 

41. 

8. 

219.50 
443. 42 
220. 22 


Do. 


,00 
,00 


25.15 
250. 00 


32. 06 


75.00 
190.95 


Worthless. 


$1.52. 12 


252. 06 

KM).  00 

1, 476.  5(; 

299. 67 


4G1.  .52 
20.  00 

.5.60 
20.  (K) 
50.  tH) 
60.00 
261.63 
25.  00 

166!  6() 


140. 00 
202.  2.r 
125. 00 
250.  00 
1 15.  00 
200. 00 

156.00 


■,.  Jl 


■A 


$162.  (H) 

98.  50 

7.68 

250.00 


. 


268 


INVESTIGATION   OF   NATIONAL   BANKS. 


>i(iii:i>i'LE  B.—QHarlir  fh(li»!f  March  30,  /SOI— Assets,  other  than  hilh  rcceivahle  in  fhs 

hands  of  the  reveirer,  etc. — Continued. 


Date. 


Mar.  16,  '91 

19,  '91 
Dec.  16,  '90 
Feb.  2, '91 
Mar.  20,  '91 

20.  '91 
Mch.  20,  '91 


Feb.  18, '91 
Mch.  20,  '91 
9, '91 
9, '91 
9, '91 
9, '91 


Description  of  assets. 


Cash  items — Continued. 

Memo.  G.  W.  MaxHh,  pres 

Do 

Note,  H.  Patterson,  end.  G.  W.  Marsh 

Receipt  for  poHtal  note  to  be  renewed 

Check,  J.  A.  Kelly  &.  Co.  (cashed  before  bank 

closed) 

Check,  Win.  J.  Baker  (cashed  before  bank  closed) . 
Check  Jacob  Meyers  (cashed  before  bjink  cIohhI) 

Memo.,  1  teller  snort  in  settlement 

Check  L.  Dolnias,  Chester  ($40  rasli  attached). 

Check,  memo.,  J.  W.  Catherine,  jr 

Do 

Do 

T>n 

UO  ••••---...-..-•...•.,...,...,..,,,.,., 

Do 

Country  check  held  from  3,  19  (sent  out  3,  20) . . 
Check  returned  from  Camden,  Nace  &  Swartlei 

Cash,  $14,168.58 

Sundry  memos.,  advances  of  salaries  to  clerks. 

Casli  on  hand,  3,  20,  own  circulation 

Mut Hated  coin 

Counterfeit  uotes  (2  $10) 

Fracti(»nal  currency 

Fractional  .silver ][[ 

Silver  dollars 

Gold  coin [[[ 

United  State.s  jjold  certiflcates,  42.009.36 

Exchanges  for  (J.  H..  3,  20,  lield  by  them 

Traction  bonds  held  by  C.  H.  a.s  collateral 

Sea  Girt  and  Sjiring  Lake  stock 

Furniture  and  tixt ures 

5  per  cent  reden»pt  ion  fund 

Error  in  item  $97,  a  former  schedule  G,  should 
be97ct8 


Good. 


Doubtful. 


Worthless. 


$45. 00 

50.  00 
700.00 


$.97  I. 


179.  87 

43. 08 

239.  12 

200.00 

152.  0-2 

'75.  07 

*2,  319. 18 

*285.  (K) 

*6«'0.  00 

*35.  11 

*2.  200.  00 

1,  072.  01 

11.36 

121.01 

577.46 

1,  000.  00 


Total  ($909,848.90) 


19.72 

1, 300. 00 

6, 000.  00 

3,  575.  50 

30.  000.  00 

70.  (J05.  46 

100, 000.  00 


$94.  14 


20.00 


i,  250. 00 


.500,  000.  00 
10,  000.  00 


96.  03 


■ 


276,  225. 57  i  624,  :M1  .  19  9, 282. 14 


*  To  be  charged  to  city  treas.  account. 
Beport  of  the  condition  of  the  Keystone  National  Bank,  March  :^0,  ISOl. 


Assets. 


Total. 


Assets  at  date  of  siisjten.sion,  viz; 

Bills  receivable   (schedule  with  this  report), 

S<-hedule  A 

Other  assets  (schedule  .with  this  reuort),  Sched 

uleB .....'. 

Excess  of  bonds  over  circulation .«. 

Total  assets  at  date  of  suspension 


Good. 


.$811,662.51   $294,380.45 

909,  848. 90  .  276.  225. 67 
.5,000.00  \       5,000.00 


1,720.511.41     575,606.02 


Doubtful. 


$372,651.29 
624,341.19 


Worthless. 


$144, 030. 77 
9,  282. 14 


990,992.48  i     153,912.91 


Estimated  actual  value  of  doubtful  and  worthless  assets,  20  per  cent  or  $230,181.07. 

Liabilities  at  date  of  snspctmion. 

Individual  dopo.sits  (scliednle  with  this  iei»oit),  C $1  300  513  07 

Deposits  made  March  20,  D *   29  240  67 

Certificates  of  de])OHit  (schedule  with  this  report),  E ... ...... ...  "7' 971  91 

Due  to  national  hanks  (schedule  with  this  njnut),  V ...... ....... ... '.  U)  573. 47 

Due  to  other  hanks  and  hankers  (scluMlule  with  this  report),  G  .  ] 3'  170  02 

Due  clearin«?.honse  loan  account  (schedule  collat.),  H 334'  '>86  60 

Dividends  unpaid , '"  6,' 120.' 00 

Due  hills  outstanding,  1 43  701. 51 


Total. 


1, 735, 577. 25 


KOBEKT  M.  YaRDLEY, 

Beceivcr. 


INVESTIGATION    OF    NATIONAL    BANKS.  269 

^    Exhibit  2,  of  May  5,  1892. 

Schedule  C. 

List  of  depositors  of  the  Eei/sione  National  Bank  of  Philadelphia,  Penna.,  and  amounts 
due  to  each  as  shown  hy  the  ledgers,  March  20ih,  1891  y  the  date  of  suspension. 


Adams,  W.  H.  &  C.  E $25. 54 

Anspach,  T.  J 98.89 

Abel,  A 21.83 

Acker,  T.  A 93. 63 

Adams,  Ehenezer 9. 63 

Applegate,  J.  E 1, 894. 89 

Armstronj;  &  Vance 2. 11 

Austin,  K.  11 537. 95 

Arthur,  R.,  &  Bro 456. 97 

Altcmus,  S.  G 96.  74 

Afruew,  H.  L 282.74 

Allen,  W.P 115.80 

Allen,J.L 14.79 

Alexander,  \V.  T 79.  73 

A  hern,  John 4, 877. 59 

Allen,  A.G 124.54 

Alcock,  E.C...    .571.50 

Alard,  H.C.  De 1.78 

Allen,  .T.  Alfred 100. 05 

Alcock,  A.  B 100.  00 

Ashraead,  A.  C .327. 25 

Annear,S 226.12 

Anderson,  D.  L 1. 12 

Apsley,  W.  W 61.55 

Anderson,  Samuel 586.  28 

Anderson,  S.  L 

Adams,  C 

Aldred,H 

A8hhrid«5e,  E.  A 

Anderson,  A 

Ashton,  Kate 

Allison,  A.  A 

Arni8tron<^,  R.  H 

Aubrey,  J.  R 

Alexander,  Lilian 

Atwoo<l,  O.  E 

Ai»plegate,  E.  M 

Applejjfate,  Ida  M 

Albright,  C 

Basteau,  H.  S 

Bradley  Bros 293. 00 

J^»Jf^',J 1.41 

JJ««'e,A.S 668.44 

Batchelor  Bros *        3.00 

Bay  ley,  Florence 9. 22 

Haker,  W.J 809.45 

Barker,  C.  A 4,141.65 

Baulsley,  John,  &,  Go 7. 02 

Braflford,  Mills 6, 152. 60 


Braithwait,  R.  M.,  &  Co 

Bailey,L.L 

Baker,  J,  D 

Basteret,  Geo.  D 

Bradley,  H.H 

Baker,  Henry 

Brandt,  J.  E 

Black,  Henry 

Bauer,  Bros  ". 

l^ailey,A.S ..'. 

Bauer,  Benj 

Braden burgh,  C.  A !."!." , 

Baldi,C.O.A'. 

Barclay,  C.B 


.25 
1.50 

201.00 
12. 2<) 

936.  71 
10.00 
36. 44 
40.  73 

400. 03 

133.80 
15. 00 

246.  47 

257. 47 
9.48 

555. 63 


391.52 

14.05 

250. 54 

545. 13 

..50 

216. 23 

.37 

104. 37 

14.  60 

.87 

.97 

368. 53 

25.77 

773. 11 


Baker,  Sally  M $11.  32 

Bardsley,  J  ohn  (special) 35, 801 .  55 

Blaucher,  D.  V 5. 00 

Bacon,  Dan  i el  H 16.  95 

Black,  Samuel 540. 17 

Bateson,  John 8.  36 

Blackburu,  C .45 

Baker,  Anna  H 38. 08 

Bradley,  M fi(i2.  44 

Blasins,  Oscar 55.  44 

Barry,  John 4(}0. 00 

Blasins  &  Sons 3. 26 

Bagot,  John 210. 00 

BlackweU's  Durham  ToJiac- 

^oCo 30.00 

Barnard,  R.C  551.46 

Barritt,  Chas.  H 264. 44 

Bancroft  &  Cox 80.  77 

Barnes,  E.C 128. 31 

Bailh^r,  J.  K 24.00 

Bahhvin,  E.  E 167.64 

Ball,C.F 5L26 

Baker,  .J.  W.,  sec'y 430.  45 

Ba  ker,  C.  T.,  agt 9. 03 

Braudenbuigh,  Garrison    &, 

Co 33.25 

Beale,S.T  245.64 

Bennage,  W.  D 160. 68 

Beard,  M.  A .35 

Bender,  W.  A 158.86 

Bell,  James 19. 39 

Barnady,  D.  E 8.  a3 

Brenen,  Johu 104. 13 

Bciswaiiger,  Carolina 150. 98 

Bergman,  H.J 763. 23 

Belmont  Driving  Club 49.  65 

Bergman  &  Moritz 253. 07 

B<'11,S.J 35.62 

Bedell,C.H 113.30 

Belmont  Racing  ^'und 27.12 

Bentley,  Mrs.  J.  H .90 

Bedell,  Florence  G 144.  75 

Bergner,  Linda  T 309. 46 

Bergner,  Serena  M 500. 00 

Billstein,  A 103. 12 

Brinton,  Lewis 2.22 

Brinbauer,  H 135. 20 

Bi  ble,  Hattie  T 245. 93 

Blester,  Wm.  H 21. 48 

Brown,  J.  H 141.99 

Boelnne,  O ^ 287. 10 

Bozelli  «&  Lotti 1, 088. 66 

Brogan  «fc  Smith 19. 34 

Brown,  Geo.  W 128. 71 

Boldt,  (:leorge  C 2,  391 .  93 

Boughton,  John  W 1,  007. 80 

Bortel,  E.S 66.17 

Brolasky,  M 325.  76 

Brook fiehl,  H.  P 770. 91 

lirower,  Carrie  M 4. 48 

Broadbent,  Catharine 147.  03 

Bock,  Chas 65.50 

Boyd,  J.  B 1,036.51 


•'  1 


270 


INVESTIGATION   OF    NATIONAL   BANKS. 


J/tnt  of  dfpotUorsofthe  Keystone  National  Bank  of  Philadelphia^  Penna.,  e/c.^Coutinned. 


INVESTIGATION    OF    NATIONAL    BANKS.  271 

List  of  depositors  of  the  Keystone  National  Bank  ofPhiladilphia,  /'ewwrt.,<?/r.— Continued. 


Boiu'r,W.H.,  &Co $135.40 

Brock  wav,  C.  A 200. 59 

Bodiu,  K.  L.,  atty 7. 9S 

Bogan,  John 227. 69 

Brooks,  n.V 25. 00 

Borden,  W.  Scott 47. 1 1 

Boyd,  A.  C... 32.06 

Bowman,  John  O 1, 45L  71 

Bonsack,  J.  A S.  817.  13 

BothwcU,  C 1H7.  25 

Bonnet.M.E 2.96 

Bowhvs,  Snsan  M 330.  S8 

Bovd,  White  &  Co mXX\ 

Bo;>the,W.  F .21 

Bonzano,  M.  G 2. 05 

B  r  o  w  n .  W 60 

Bowman,  W.  O 3. 98 

Borzell,  ChaH.  VV.  &  Co 58. 14 

Bogan,  M 79. 07 

Bonnet,  Chas.  E.,  < reas 2. 00 

Bosbvshell,  O.  C 4,  200. 00 

Brown,  ('.A 4,2(X).(H) 

Brnee,  .lane 1, 085.  98 

Bnrke,C 488.04 

Bnist,  James 32.85 

Burr,  Anna 104.42 

Bnrdette,  R.  J 17.  65 

Blum  Bros 24.20 

Bunting,  Sanniel  &  Sons 6^  272. 30 

Bulkley,  Ward  «fc  Co 1.81 

Butler,  (leo.  W 1. 12 

Burehard,  Henry 2. 48 

Buck,  Jane  .....' 2, 000. 00 

Bruner  &  B<'i.shlag 6. 93 

Burke,  .James 2.  97 

Bryan,  J.  G 5. 67 

Challenger,  T.  E .34 

Chambers,  D 81.12 

Carr,  Peter .13.98 

Cassatt,  Mrs.  A.J 782. 42 

Clark,  Fletcher 100. 32 

Cartledge,  T 4. 60 

Chandler  ife  Scheetz 204.  72 

Clark,  W.E 8.50 

Clark,J.B .93 

Crawford,  R 414.19 

Crawford,  M .  E 62.  31 

Craw  f<n*d,  M.  M 764.  .57 

Clayton,  J 9.  71 

Craig,  John  &  Son aSO.  29 

Cariss,H.T 18.71 

Camperwell,  Ira  W 445. 60 

Chase,  R.  G.  &  Co 2,289.85 

Clark  Bros 44.  58 

Champion,  S.  C 34.68 

Canning,  L 97. 62 

Clark,  F.,  treas 2. 48 

Campbell,  John 521. 15 

Clausen,  J.  R 32. 21 

Campbell,  John  &  Son 267. 61 

Craig,D 1.34 

Cramer,C.E 827.36 

Carr,  John 28.23 

Cattell,  W.C 41.16 

Casselbeny,  C.  1) 7.51 

Cliambers,  J 36.23 

Clark,  VVm.  S 252. 92 

Clausen,  J.  R.  &  Son 1,  908. 93 


Campbell,  J.  A 

Cahill.J.S 

Chad  wick,  E.  D 

Canipl>ell,  .1.  H.  &  Sons 

Chandler,  R.G 

Carn.ll.J.S 

Cha])man,  .7.  L 

Chapman,  M.  J 

Carpj'nter.  (' 

Clare,  T.M.iV  Co 

Crabtree,  Dora  L 

Carti'r,  Ida  M 

CanHeld  Mfg.  Co 

Cadwallader,  M.  P 

Chamberlain,  W 

Chad  bourne,  Hazeltine&  Co. 

Clair,J.  R 

Casvsidv,  J  (dm  P 

Cla.vbangh,  Mrs.  E 

Carpenter,  E.  K 

Central  Market  Co 

Chew,  J.  E 

CrcKson,  Ge(K  V 

Cresson,  F.  E 

Central  Electric  Co 

Cresson,  M.  B 

Cleverly,  H 

Central  Savings  Fund 

Crew,  A.  B 

Cln'ster,  H 

CliOVn-d,  Scott  &  Lawtou  ... 

Clitlord,  Eva  M 

Crispcll,  II.S 

Conlv,  (ieo.  .7 

Collier,  C.B 

Choate,  Chas.  A 

Conrad  Bros 

Coxe,  J 

Co}»pnck,  M 

Ch)thicr,  (ieo.W^ 

Conly,  Chas.C 

Cohen,  S.  Sidis 

Cooper,  .1.  E 

Conly,M 

Consumer's  Marble  Co   

Coogan,  Uani(d 

Cochran,  Henry  S 

Coates,  H 

Cotter,  J 

Cooling,  M 

Coward,  H 

Connnereial  lee  Co 

Crombie  &,  Ferguson 

Cottrelly,  Matilda 

Coony,  .lames  H 

Cotwell,  C.  K 

Cooper,  W 

Cowling,  .1 

Cox,M-.. 

Co(mey,  P.  J 

Cooper,  E.  M 

Cox,  Samnel  P 

Crump,  .John 

Cnmmings,  S 

Cunmiings,  .John 

Currie,  Anita 

Cuulitle,  (leo.  D 

Crumi>,  G.  R 


$2.86 

.33.  21 

.3,'v58 

289.  :^ 

76.20 

.11 

3.07 

2.30 

22.90 

2.74 

105.00 

53.39 

6.24 

10.00 

1,  766.  92 

7.44 

3. 93 

101. 92 

,327. 14 

31.  32 

.3, 312. 36 

1,481.94 

32.50 

1.81 

21.63 

239. 56 

742.  73 

25, 430. 90 

11. 31 

.3.07 

329.94 

82.  .59 

.5. 8.~> 

25.16 

40.71 

412. 5^1 

115. 14 

3, 577. 87 

161. 83 

1, 160. 02 

387. 30 

8.90 

35.94 

29.26 

40.00 

478.  it' 

267.81 

291. 89 

.28 

25. 61 

173.61 

63.19 

14. 95 

17.  (K) 

4,681.81' 

2.31 

.19 

.18 

.45 

345.80 

438.61 

200. 00 

ll,00i».2l 

7.9:5 

9.  i:'. 

51.9.'. 

239.  2.') 

10, 000.  (M) 


Clyde,  J.  J 

Dalby,  J.  E.,  treas 

Drayton,  H. , 

Darragh,  M.  L 

Datesman,  Geo.  E 

Davis  &  Harvey 

1  )a vis,  F.  A 

Dalmas,  Sophie 

Drake  «fc  Strattou 

Davy,  Samuel 

Drake,  W.S 

Dalby,  J.  E 

Davis,  Ed.,  supt 

Davis,  J.  H 

Dallas,  T 

Davis,  W.J 

Dakin  «fc  Petry 

Davis,  F.  A.,  treas 

Darling,  C 

Daly,M.P 

Dexter,  E.  M.  «fe  Co 

Delaney,  J.J 

Degenberg  &,  Ganserfc 

Dearborn,  Geo.  E 

Devlin,P.&F 

Dreka,  Louis 

De  Lissa,  A.  S 

DeMar,P 

Dean,  H.  L 

Deacon,  C.  R 

De  Gran,  M.  J 

Dean,  H.  L.  «fc  Co 

Devlin,  John 

Denny,  C 

Drew,W.P 

Dengler,  G.  J 

Deuneler,  Chas 

Deehan,  James 

Deakyne  &  Pennypacker. .. 

Deane,  A 

Deyoll,Z 

Dickson,  Ida  E 

Devine,  W.  J 

Dillaye.  Blanche 

Dixon,  Sally  W 

Dickson,  John  &  Co 

Dixon,  H.P 

Dix(m,  H.P.&  Co 

Dilkes,  Geo 

D'luvilliers,  A 

Dixey,M.S 

Dixey,  Charles 

Driver,  J. M 

Driver,  Chas 

Dollard&  Co 

Douglas,  Mary  G 

Dore,  Desire.. 

D(muH,  A.  B 

Dougherty,  P 

Doherty,  J.  P.  «fe  Co 

Dougherty,  Mrs.  A 

Doerr.Chas.A 

Dunning,  Stavely  &  Co 

Dollmer,  Chas.  F.,  treas 

Dunshee,  E.  S 

Dubosq,  Frj.ncis  P 

|>"nn,T.J.,J^Co 

Dunseith,  James 


$21. 22 

1, 124. 87 

14.  72 

.60 

10. 83 

315. 93 
7, 431. 32 

L83 

26.  72 

13. 69 

190.66 

1;  588.  30 

315. 94 
7.  49 

.35. 21 
.64 
214.  29 
•1,727..M 
l.(K) 
1,100.00 
370. 12 
491.95 
743.  .55 
4.  216.  78 
<>")4.  75 
1,  576.  80 
1()9.  50 
.95 
..51 
201.  80 
5.00 
.81 
1,  031.  23 
.  99 
.41 
53.  37 
401.27 
1,139.  .52 
270.  08 
.50.  34 
1,. 585.  23 
16.44  i 
.93 
162.09 
426. 37 
394. 59 
33. 57 
924. 57 
13.43 
96.77 
L41 
L41 
11.77 
2.00 
135.41 
.11 
129.  ,50 
972. 81 
538.  95 
498. 33 
.  11. 87 
3.54. 93 
168.37 
2, 230. 98 
500.  (H) 
130.04 
2, 552.  79 
13.64 


DutlV,  Chas 

Dunn  «Sr  Co 

Durham,  M 

Dye,C.R.C 

Emerson,  W.  S 

Evans  &  Battles 

Erskine,  M.  E 

Emery,  S.  H 

Evans,  N.F 

Edwards,  J.  H 

Estel,  .John 

Evarts,  L.  H 

Edmund,  W.  J 

E  bersole,  M.  F 

Ewing,  Alice  B 

Eli,  L.  1) 

Epij)hanv  Sunday  School 

Engle,A.D .* 

Ewing,  Mrs.  W.  D 

Ewing,  W.D 

Esler,  F 

Earle,J.V 

Eisenbeis,  Laura  S 

Earey,  Thomas  J 

Empire  Pub.  Co 

El  well,  Rachel  J.,  treas  . ., 

Ecroyd,  R.E 

Escaudel,W.S 

P^llis,  Amos,  2nd , 

Edwards,  V 

Emery,  J.  E.,  i^rest , 

Farrell,J.E 

Falkener,  Mrs 

Faley,E 

Faulkner,  A 

Fay,C 

Farrell,  Frank 

Flannery,  E 

Faulkner,  M.  B 

Faley,E.H 

Farquhar,  J 

Farr,B.H 

Ferkeler,  H 

Feller,  David 

Fenn,  Thos 

Ferguson,  R 


Ferguson,  C.  A 

Freeman,  J].  R 

Fence,  S.P 

French,  Wm.D 

Freeman,  A.  C 

Freeman,  S.  C 

Filley,  H.,  &Sons... 

Fisher,  Wni.  J 

Finley,  J.  D 

Flickinger,  H.W 

Fitler,C.H 

Fisher,  W.D 

Field,  .LF 

Fitzgerald,  H 

Filter,  E.B , 

Fischer,  S.  L 

Fi>r])es,  W.  S 

Ford,  J.  I' :... 

Fox,  (ieorge 

Flower,  A.  E 

Fox,  Ivan 


$460.22 

138.77 

250. 25 

76.  48 

L89 

6.03 

.75 

30.91 

500.80 

30.40 

.57 

4, 160.  62 

43.24 

.  28 

lOs!  64 

4.17 

13.55 

L50 

2a5. 36 

306.98 

L46 

548.70 

3.45 

8a.  00 

104. 37 

169.11 

3.69 

45.00 

128. 62 

80.00 

25.00 

67.  .50 

.5.54 

202.70 

2.91 

7.40 


L39 

L50 

317. 26 

89.22 

108.  65 

8.69 

465.47 

135.68 

105.  74 

4, 175. 81 

79.  .35 

622.20 

1,  643. 89 

765. 86 

300.00 

1, 152. 93 

431.81 

350.14 

93.63 

125.41 

-     6. 79 

24.79 

124.  .55 

502.  39 

300.00 

383.24 

1,2.39.  .55 

25.52 

200.15 

77.58 

836.78 


i 


272 


INVESTIGATION   OF   NATIONAL    BANKS. 


I^^^t  of  depositors  of  the  Keystone  National  Bank  of  Philadelphia,  Pen 


INVESTIGATION   OF   NATIONAL   BANKS. 


273 


"k 


'.I    ; 


Fox,  Hannah 

Flowert,  C 

Foster,  Samuel 

Forepangh, John  

Fortcsciie,  L 

ForKytli,C '///. 

^'"»'«\y,M , 

Furness,  L 

FiiUoway,  J.  V 

Fiiniess,  J.  F 

Furlonff,J.F 

Gray,  H.  VV 

Gage,J.G 

(iraysou,  C 

Graham,  S.  (! 

Grant,  H.M .'*'. 

Granlees,  W.  J.,  Mrs 

(irahanj.  E.  L 

Gray,  .las 

Granlees,  W.  J 

Gratz,\V ;*. 

Galhi^her,  K 

GJaser,  Sam'l 

Gautsche  &  Son 

Gray,M.  E [[ 

Garwood,  S.  S 

Gardiner 

Galloway,  Wni \, 

Galla«;her,  M * 

Gabell,G.T ',,[ 

Gautauerel,  Mrs.  E 

Graves,  V 

Gray,  M.D 

Garrison,  David 

Granlees,  H.  V 

Gaskell,  K.  C .'.'.* 

Granlees,  K.,  &  Son 

Graves,  O.B 

Graham,  Jas 

Galloway,  J.  L *  ] 

Graham  &  Son ', 

Gardiner,  R.  B 

-  Gray,  H.  W.,  treas .' .' ." 

«age,C.S 

Gardiner,  H.  A 

Greenslit,  E.  A '.", 

Greenor,  J.  M ] ' 

Greaves,  E.  H 

^erke,J , 

fierry,T 

Greer,  John 

Glendenniiijf,  H.  M .'. 

Green  well,  John [ 

Gerster,  Geo [[[ 

Geisse,  L.  W.  C i 

(Overdrawn.) 

GJeason  &  Co 

Green,  R.M.,&  Co '....'. 

Gerry,  L 

Gerrard,  Mrs.  A.  L 

Green,  !l 

Gre-jr.W.L [V]; 

Greene,  C.  P 

(ieary,  W.A ." 

Greer,  I )a vid 

Grimes,L [[ 

Ciilpiii,R 

Gillison,   Christie  &   Lock- 
erbee  


D  .. 


$1,039.92     Gibbons,  R.Q 

Grimths,J.J 

Givin,W.J 

Gibson,  Thos.  .J 

Givin,  S.  R 

Gilmoro,  Jas 

Gilmore,  .F.  C  ... 
Gihhrist,  W.  W  .... 
<iillan,  S 

(aimths,W.S 

Gilborr,A.L 

(Jibson,  M.  K 

Goble,  H 

Gonhl  it  Fisher 

Gkxker,  C.  W 

Groves.  W 

Groves.  \V.  J 

GroiM-n^tfiser,  L 

(iross.  II 

(iodfVey,  Wni 

(iroRswith.  H 

Gr<»sslino;,  Tlios.  R  .. 
(Joidon.  R.  H.,  treas. 
<iood fellow  A,  Son 

Goldbernr.  M 

(Jnarantee  rnml 

Cirnmley.  R 

<'«i.vn,H.H 

Grmidv,  E 

(ininke,  r 

Guide,  V 

Hammond,  L.J 

Hall.Wm 

Haz.ird,  Alex.  M. 

Harris,  T.  M 

Ha<«ist,  John 

Hall,  \Vm.  R 

Hall  cV  Garrison 

Hannan,  J.  C 

Harrison,  Kate 

Harries.  (;.  n.  &  Co.. 

I  Hall,  Matthew 

I  Hal<l(>man,  .s.  O 

:  Hayden,  Wm 

I  Hamilton,  C.R 

I  Hasselmau,  N 

I  Hancoek,  J.  B.  &.  Son 

I  Hale,  W.  G 

'  Hartman,  L.  B 

Halpin,  Rose 

Harris,  T.  M.,  &.  Co  .. 

Hawkins,  F.  H 

Harris,  S.  Clark 

Harris,  Thos.  W 

Hayes,  J.  Henry 

Hanan  &  Son 

Harland,  A.  L 

Hayes,  Chas.  E 

Harris  «&  Hend<is<m.. 

Hass,  Constantine 

Hallo  well  &  Co 

Haig,'A.H 

Harris,  W.  .1 

Ila/ledine.  .Fohn 

Hamilton.  Cbas.  L 

Haiikin,  Edw 

Hasse,  Lewis 

Helmbold,  E.  R 

Heilig,E.C 


.4.' 
452.31 
719. 32 
416. 15 
20.  75 
1.82 
12.17 
83.  .5« 
42. 15 
6<X).00 
4, 380. 41 
2.00 
189.21 
9.  .50 
14L9H 
2. 52 
249. 43 
«.  25 
43.  41 
4.2:^ 
4(K).  02 
373.  HI 
22.  10 
184.  .57 
197.  71 
195.67 
.53^1.71 
244.82 
172.86 
.5.  19 
818.  OJ) 
5.89 
2,  392. 0(> 
UK).  46 
5.62 
47.00 
1.80 
452. 31 
772. 08 
183. 05 
17.09 
2, 055. 06 
289.  .30 
12. 30 
3.09 
2HH.  76 
785.47 
6.65 
19.  67 
514. 18 
(>0.89 
669.  70 
25.68 
7.61 


156.  94 

2,  974.  72 

..52 

22.81 

53.02 

L69 

239. 15 

1.28 

276.  6!) 

3.26 

139.  fti 

794.50 


na.,  eic— Continued. 


$2,910.89 
60.76 
767.65 
2L75 
216. 53 
76.77 
1,  486. 1^ 
783. 82 
3.01 
497. 44 
27.77 
4 12.  79 
278. 19 
576. 63 
808. 86 
23. 09 
1,389.99 
20.40 
24. 23 
1,0.51.63 
954.  74 
.32.  18 
J)6.44 
258. 62 
91.67 
27.5.00 
a5. 98 
394. 2<> 
551. 24 
.15 
400.00 
94.  K2 
238.  (Mi 
20. 30 
117. 6<i 
28.69 
24.84 
447. 40 
13.99 
91.77 
10,  .507. 38 
5, 595.  98 
.5.00 
587.84 
67.02 
40.40 
.18 
15.97 
160.64 
291. 31 
.38 
.14 
69.  .34 
657.68 
2.09 
885.49 
212.  (>> 
1,  078. 20 
856.  39 
1, 030.  SX 
88.19 
18.07 
11.00 
180.  00 
11.07 
897.  7:< 
1, 303.  4 1 
51.5-1 
1.08 


List  of  depositors  of  the  Keystone  National  Bank  of  Philadelphia,  Penna.,  cfc— Continued. 


as  .. 


Henderson,  J.  D 

Hele,  Martha  D 

Heron  &  Nesbit 

Hetzel,  Geo.  C 

Hetzel,  Geo.  C,  &  Co 

Herring,  W.  E 

Henderson,  Sam'l  R 

Herohl,  Chas.  P 

Hess  C'.  F 

Hestonville  M.  *&  ''i\  R.R.  Co! 

Henry,  H.  S 

Henler  Cutlery  Co 

Heckeler,  Rosa  E 

Healy  &  Lupfer 

Hill,  James  E 

Hildrath,  Mary  A 

Hillman,  Mrs.  Kate 

1  linch,  Wm.  E 

Hitchcock,  Wm 

Hinchcliff'e,  Geo.  D 

Hillman,  John  F 

Hillborn,  Chas.,  jr 

Hildebrand,  H.,  treas 

Hinckley,  John  F.,  trea 

Hirons,  Marv  E 

Hill,P.L.,Anty 

Hicks,  Robt 

Hickman,  L.  M 

Hills,  Sarah 

Hopkins,  Martha , 

Holbrook,  R.  M 

Howard's  Sons,  Jas.  W, 

Hornickel,  H.  A 

llo]>per,  Maria 

Howell,  Francis  F 

Holland,  Geo.,  mgr 

H,  rr,  R.  C 

Horr,  R.  C,  &  Co 

Horr,C  

Holli8,W.  F.,&  Co.... 

Hopkins,  G.W 

Horter,  L.  F 

Howe,  Frank,  jr 

Hopkins,  Jas.  P 

Holler,  Wm.H 

Hood  &.  Townsind 

Hopkins,  Mrs.  Kate 

Hobson,  Geo 

Hoffman,  Wm.  A 

Ho8kin8,C.P 

Howland,  Annie  C 

Horau,Geo.S 

Hunter,  Thos.,  M.  D... 

Hunt,W.E 

Huber,  John  Y 

Huylers,  J.  G.  Harrison, 

Hunter,  John,  agt 

Hunter,  W.D , 

Hunt  &  Eaton 

Hunt,  W.  R.,  treas 

Hussey  &  Son  Co 

Hyndinan,G.  B 

Ivers&Pond  Piano  Co. 

Isaacs,  Leon  &  Co 

Ihach.  Franklin 

liwin,  J.  W 

JnglisOttoE.... 
Iiwin,  (J.M... 


mgr. 


$336. 13 
.,52 
.322. 32 
15.84 
6, 471. 88 
2, 534. 22 
8.63 
49.10 
.24 
537. 33 
56.37 
40.67 
294.00 
500.  00 
19. 25 
326.06 
59. 84 
516. 8S 
72.  .59 
25. 25 
96.26 
1, 151.  44 
570.  37 
369.  45 
.32.41 
450. 24 
470.07 
306.41 
310. 62 

103. 39 

148. 40 
8.55.  17 

4,  224.  59 
1.52.21 
231.  (K) 
.61 
219.11 
.58.  82 
.20 
2.32.68 
78.43 
168..12 
46. 95 
1.24 
13.  24 
23.  91 
30.00 
180.  (M) 
1, 576.  tK) 
1.5.42 
.30.26 
352.50 
258.05  ; 
15.68 
1,  .332.  94  ' 
402.88 
46.21   i 
20.00 
8L45 
402.  .37 
18.85  ' 
:^.79 
154.74 
514.80  I 
46.40 

.5.41 ; 

.07! 
4.29  1 


j  Irving  Publishing  Co 

International    Society     of 
I       Waiters  and  Bar  Tenders. . 

I  Jackson,  J.  T 

'  James,  Thos.  L 

j  .Jacobs,  a.  E 

j  Januvs,  Frank 

Jewell,  Geo.  J 

i  Jetireys,  (4eo.  W 

I  Jenks,  A.  S 

Jermon,  J.  G 

.Johnson,  John  C 

.Jones,  Mary 

.Jordan,  Jacob  R 

Jones,  .1.  R 

.Johnson,  IL  C 

.Jones,  W.  J 

.lohnson,  S.J 

Jones,  Rol>t.  C 

.Jones,  Mary  H 

Jones,  Jas.  H 

.Jones,  W.  K 

Judge,  P [][] 

Kauifinan,  Chas 

Kahu,  Saml.  M 

Kramer.  AV.  J.,  agt 

Kampier,  E 

KampcF.F 

Krager,  R.  L.  (overdraw  n). 

Kauflman,  Jos.  A 

Kaudman,  Luther  S 

!  Kemble,  M.  Virginia 

Kennedy,  Matthew 

Kearu«'y,  Richd 

I  Kennedy,  .Jos.  P.,  estate 

Kerst,  Jlenry 

Kendrick.  Chas.  H 

Kelly,  Thos.  J 

Kelly.  Th(tH 

Kerr,  .Jas 

Keys.  H.  C,  treas 

Kelly,  John  A 

Kelly,  .John  A.,  &  Co 

Kern,  ijwvy  A 

Kevs,  JohnC 

Kelly,  E.J 

KeystiMie  Mortgage  Co 

Keckeler,  T.T 

Kennison,  W 

Iverlin,  Isaac  N 

Keystone  Mortgage  Co.  (div. 

fund) 

Keator,  Bruce  S 

Kellogg,  Carrie  J 

Kellogg,  A.  G 

Killian,  Isaac  

Tvi tson,  Louis 

Kingsley,  C.  A 

K^immel,  M.  S 

Kirk  &  Collins 

Kri  venik  &  Trauner 

Kinnev,  John 

King,  C.  P.  «fe  Co 

Kindried,  C.  F 

Kimmel,  W 

King,  Wm 

Kolischer,  Theo 

Koshland  &  Stein 


3792- 


-18 


$1. 25 

270.00 

540. 05 
7.5.85 

11.3.  74 

5.53. 25 
85.33 
40.45 

184.88 

45.64 
316.56 
439.82 

16.24 

2, 149. 72 

590.63 

.25 

206.00 

80.00 
133. 96 
788.19 
558.00 
270.24 

27. 62 
.523. 59 
169. 27 
358. 40 

12.87 

24.45 

42.16 

192. 48 

6.70 

482.09 

112.70 

1,  390. 30 

726. 14 

L43 

58.51 

12,177.95 

6.69 

485.55 

846.^4 

39.32 

1, 076. 11 

329.92 

15. 30 

12L00 

10.00 

473.08 

13.49 

194.00 

143.06 

311. 40 

12.35 

2.07 

10L27 

176. 62 

3.78 

1,  715. 94 

49.60 

238.40 

26.10 

217.  80 

1,  758.  76 

284.02 

1, 400. 97 


•M 


^- 


•vv 


t 


274 


INVESTIGATION   OK   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


275 


J 


Ji 


I 


List  ofdepositorfi  of  the  Keystone  National  Bank  of  Philadelphia,  Penna.,  c<c.— Continued. 

Kochersperger,  C.  P $13. 00 

Kobbe,  Otto  F 245.  72 

Kochersperger,  Clayton  H  . .  46. 00 

Kolb,  Sarah  F.... 7.05 

Kugler,  Chas.  N 1^  39i>.  13 

Kutz,  H 812. 53 

Kugler,  Geo 464. 10 

Kyle,  Berry  &  Co 82. 46 

Land,  Frank  G 1.62 

Lamb,  Walter 90. 31 

Lamb,  Jas.  F 295. 56 

Lauber,  Chas 301. 84 

Laws,  J.  D.  &  Son 727,21 

Latferty,  Jesse  M 403. 81 

Laird,  Agnes 15. 00 

Lawrence,  Geo 100. 00 

Lausch,  F.  A 4. 55 

La  Koche  &  Stalil 147.  79 

Lackenby,  Ellen 35. 00 

La  Ment,  Clarenee 45. 88 

Leer,  Hattie  (overdrawn) 

Lewis,  J.  E 111.  03 

Lester,  F.  A 24. 95 

Leonard,  L.  M .17 

Llewellyn,  W.  H 1,  783.  79 

Le  Fevre.  F.  A 11.  98 

Leskie,  Harry  B 21. 31 

Leidy,  Lewis  C 19. 38 

Lejambre,  Henry 89.49 

Lewis,  B.  F 137. 25 

Lemon,  H.J 86.88 

Le  Maistre,  H.  F 24. 06 

Leouar«l,  M.  H 10.  98 

Lentz,  H.  D 29.02 

Le  Conte,  R.  G 32.  45  i 

Leupold,  Henry,  jr 60.68 

Lewis,  Sarali  C 13.  70 

Leupold,  George  C 210.21  1 

Lehman,  V.  B 251.70 

Legal  Tender  Fraternity 160. 03 

Liberty  Lodge,  A.  P.  A  /. 328. 25 

Lingle,  J.  M , 410.19 

Linford,  Chas 2. 27 

Livengood  *fe  Lipscomb 120. 38 

Lilley,  James 474.  51 

Litzenberg,  Chas.  H 5. 01 

Linsley ,  A.  B 140. 61  i 

Lindsay,  Wm 500.  00 

Libbey,  C.  P 500. 00 

Logan,  Mary  P 122.  94 

Love,  John 748.67  i 

Long,  John 14.42  ' 

Lonty,  Kate  S 75. 35 

Long,  Annie  AV 14. 22  i 

Loeb,  Joseph  «fc  Co 10.  50 

Long,  H  H 14.48  , 

Loomis,  I.  L .  65  j 

Lockwood,  Frank 191.89 

Longstreet,  John  H 2. 19  > 

Long,  James  N 594.  70 

Lucas,  Saml.  &  Co 231.94 

Lucas,  Wm 107. 94  \ 

Luay,  Hannah 157.  .59 

Lucas,  Sum'l 265.97 

Ludy,  Jacob , 166.79  ! 

Luff,  W^alter  H 1,  .567. 48 

Lynch,  Stephen 30. 29 

McArthur,  D 319.70  i 


Li8t  of  depositors  of  the  Keystone  National  Bank  of  Philadelphia,  Penna.,  etc. — Continued. 


McBride,  Mrs.  J.  W , 

McBrido  Bros 

Mcliurncv,  David 

McClanc'Wm , 

McCardle,  John , 

McCarthy,  ElJen 

McCaulcv,  Sarah 

McCall,  James 

McCandless,  W.  J.  &  Co  ..!! 

McCauslaud,  Wm 

McCarthy,  H.B '. 

McCaulcy,  Chas.  K 

McCay  &  Co 

McCaul,  John  A 

McCaddiH,  J.T.,  treas 

M(("ltes,J.j:.  &  Co 

McClellan,  K.  W 

McCreedy,  Jas 

McClinch,  Dan 

MacCoy,A.  W 

McCorinick,  Jos 

McCormick,  L 

]  MacConiH'll,  A.  A 

'  McCormick  Harvesting  Ma- 
chine Co 

i  McCoy,Clias 

McCoach,  Wm 

McCov,  K.  L 

McCullcij,  Jas.  P 

,  McCune,  K 

{  McDermott,  James 

McDimald,  Joseph 

M<Faddt'n,  Chas.,.jr 

McFaddcn,  Jolni 

:  McFadden,  Chas 

McGlade,  Chas 

McGarrv,  Frank 

i  McCilathery,  F.  1) 

McCiirr,  J.  j.,  agt 

McGillijin,  Wm 

Mc(iinty,Chas .'.* 

McGowan,  I) 

McGough,  Henry 

M<Gu<kin  &  Bro 

McHcnrv,  Jas 

McHugli,  Henry 

Mcllvaii),  E.E 

McKee,  Saml 

McKci^  liros 

McKinney,  Jas 

McLaughlin,  Wm 

McLaughlin,  J 

McLaughliu,  George  H 

McLaughlin,  Thos 

M<-Laughlin,  Wm.,  trustee  .. 

McLaughlin,  Neill 

Mc  Lear  &  Kendall 

McMaster,  John  B 

McMenomy,  K.  L 

McMenomy,  K.  L.  &,  Co 

McMichael,  L 

McNamara,  Frank 

McXichol,  Andy 

McShain  Sc  Latferty 

Mc  Walters,  W.J 

Marks,  E.N 

Martin,  H 

Maltby,  L.  W 


$0.93 

2,051. 21 

8.76 

1,  967.  78 

22.79 

183.00 

1.11 

1, 497.  41 

697.  70 

204.20 

2.95 

20L42 

247. 83 

199.98 

158. 30 

685.56 

334.82 

100.00 

2.00 

19.40 

321.34 

42.11 

172. 63 

5,  736. 66 
25.07 
535. 28 
25.00 
71.02 
28.21 
5.60 
2.62 
103. 40 
117.16 
2,  972. 40 
49.38 
399. 06 
2.68 
542.23 
5.00 
812.50 
311.96 
800.00 
4, 143.  66 
1,  476. 48 
5,  756. 39 
11.53 
859. 78 
4.71 
24.85 
274.18 
298.28 
7.19 
18.13 
411. 95 
21.76 
701. 20 
211. 77 
316.  42 
34.23 
1.65 
16L51 
300.00 
452. 57 
31.08 
28. 3f) 
51. 93 
^75.20 


Marcy,  L.  J 

Martin,  Clara  V 

Marshall,  Andrew 

Manning,  Henry 

Maloney,  E.  F 

Madden,  Jas 

Main  Belting  Co 

Mattson  &  llilkes 

Mfihoney,  Kate 

Malone,  K.  A 

Marsh,  C.  J 

Mackie,  Mary  F 

Mason,  A.  C 

Martin,  E.J 

Mann,  David 

Madden,  Catharine 

Marshall,  George  Morely 

Marsh,  J.  R 

Madden,  P.  J 

Martin  &  Martin 

Maguire,  R.  M 

Manney,  H.  N 

Maher,  Edw 

Maltbie,  L.  D 

Machattie,  Adam., 

Mcrshon,  A.  H 

Megonegal,  Wm 

Meyer,  Herman 

Meehan,  P 

Meloney,  C.  P 

Mearns,  S.J 

Miller,  J.  R 

Miller,  Richard 

Huber,  John  Y.  &  Co 

Michener,  E.  P 

Milner,  Sarah  J 

Mink,  Thos.  A 

Mills,  Chas.  K 

Mitchell,  Frank  A 

Minton,  F.  J 

Miller,  Chas.  H 

Milligan  &  Bro 

Miller,  W.B 

Miller,  Merrill 

Miller,  Peter 

Moseley,  E 

Morris,  S.  L 

Morris,  W.H 

Morris,  Wm.  R 

Morrison,  Andrew 

Monroe,  John 

Moore,  A.  H 

Mooney,  Mary 

Mooney,  T.  J 

Montelius,  H.  T 

Montelius,  A.  S 

INIooney,  Susan  S 

Morazzi,  A 

Moore,  Thos.  H 

Mooney,  Bernard 

Moore,  John  A 

Morrison,  C.  W 

Morgan  Bros 

Moore,  Alex 

Mort,  A.E 

Moore,  Edw.  J 

Morris,  Peter 

Moreley,  B.  F 


$628.27 
5.91 
1,  757. 99 
45.11 
91. 82 
108.59 
18.18 
1, 428. 34 
500.00 
134.93 
2.32 
.19 
70.68 
795. 86 
27.47 
398.  20 
764.35 
285. 75 
1, 345.  63 
277. 50 
13.37 
150.66 
200.00 
165.37 
50.00 
100.17 
1, 101. 99 
307.77 
533. 32 
153. 32 
325.00 
L61 
2, 166.  96 
1,  748. 26 
4.26 
1.52 
37.68 
98.11 
6.80- 
630.  71 
1,  757. 64 
1,  793. 13 
15.22 
130. 79 
133.00 
1, 032. 38 
12.39 
1,  359. 56 
660.00 
200.93 
161.98 
7,000.99 
44.71 
765. 82 
118.  37 
322.  96 
450.00 
2a5. 84 
89.  41 
281.50 
1.73 
1, 392. 27 
.05 
329.00 
29.67 
139. 41 
46.23 
20.00 


Morscll,  W.  F.  C 

Mueller,  .Julius 

Murphy,  E.  P 

Murphy,  Wm.  R 

Murray  &  W^ilson 

Munyon,  J.  M 

Munce,  Sarah  F 

Murney,  Mary  M 

Muri)hy,  R.  S 

Mutual  Library  Co 

Mullen,  Mary  C 

Murphy,  W 

Muller,'G 

Myers,  Jacob 

Nace  &  Swartley 

Nagle,  C.  D 

Naultv,  AVm.  P 

Newell,  W^m.,  it  Bro 

Nelson,  John 

Newton,  John  S 

Newton,  C.C 

Nesmith,  Frank  E 

Nell,p:.  j 

N<'el3^,  Ethel 

Nichols,  D.  P.  S 

Nixon  &  Zimmerman 

Northrop,  Isabel 

Norris,  Clara 

Nofer,  Ferd.W" 

Noble,  Robt 

Norris,  M.  L 

Nolan,  Johnston 

Noblit,  D.  «fe  J.,  &  Co 

Noblit,  1).  &  J.  C 

Noblit,  Jas.  C 

Ogden,  Sam'lM 

O'Neill,  John 

O'Neill,  Pat 

O'Neill,  Chas 

Oliver.  Geo.  W 

Oliver,  M 

Ogden,  R.  C 

Osborne  &  Co 

Oppenhiemer,  B 

Otis  Bros,  (fe  Co 

Orme,  C.  E 

Ogden,  E.  C.  H 

Old  Staten  Island  Dyeing 
Establishment 

O'Brien,  J.  J 

O'Rourke,  M 

O'Brien,  F.  E 

Ogden,  John 

Otis,  J.  G ' 

Wanamaker,  John 

Bardsley,  John,  city  treas- 
urer   

Palen,  E.  F 

Palace  Stable  Co 

Partridge,  C.  D.,  &  Co 

Paden,  M.  M 

Prandi,  Muie.  V 

Painter,  John  R 

Patton,  Robt.  H 

Pla,  Rosinne 

Piatt,  H.  H 

Parke,  Ga])rielle 

Painter,  Geo.  M 


$67.17 

300.86 

28.00 

526. 15 

2, 067. 47 

3.45 

44.29 

65.65 

100.74 

891.  47 

37. 05 

791. 50 

225. 00 

1,  708.  33 

1,  238. 75 

.93 

245. 95 

6, 105. 91 

90.31 

98.25 

4,  648. 31 

442. 23 

86.87 

97.75 

97.61 

443. 30 

1.02 

2.16 

280.59 

203. 50 

74.94 

50.20 

954. 59 

(U.02 

.05 

64.46 

328.85 

4,  943. 32 

662.46 

156.  34 

82.22 

219. 02 

8,  434. 57 

274.79 

19.89 

4.08 

2.08 

275.42 

369.31 

2.35 

5.00 

.48 

.83 

1,983.77 

600,  606. 65 

2.14 

196. 98 

1,  075.  00 

41.14 

85.64 

29.02 

336. 87 

L78 

1, 387.  66 

1.64 

184. 95 


^'^ 


^1 


i 

» 


276 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


277 


List  of  depositors  of  the  Keystone 

Patin,  D 

Parker,  Thos 

Pa.  Com.,  No.  14,  K.  G.  E-. . 

Payne,  Wm.  G 

l*arshlev,  J.  H 

Paine,  Dielil  &  Co 

Patterson,  Wni.  R 

Penu  l{<)otin<jf  Co 

Peddicord,  C.  H.,  &.  Co 

Peim  Granite  Co 

Penna.  Renting  Co 

Pennypacker,  H.  C 

Pettit,  R.  S 

Penrose,  VV.  E 

Perkins,  Helen  C 

Perkins,  Geo.  H 

Presbyterian  Pub.  Co 

Peirce,  Thos.  M 

Pemberton,  Maggie  T 

Pepper,  A.  C 

Pepper,  J.  W 

Pressel,  Theo 

Preston,  Geo.  R 

Perry,  Helen  B 

Peterson,  Peter 

Preston,  Edmund,  jr 

Pickap,  Elizabeth  W 

Pinola  Remedy  Co 

Phillips,  C.C 

Philada.  Towel  Supply  Co  .. 

Pierson,  A.  T 

Pine,  Jennie 

Prickett,  ThoH.  J 

Pike,  Jas 

Price,  Geo.  B 

Pioneer  Build.  Ans 

Phillips,  John  Ij 

Portuondo,  Vincente 

Pope,  John  W 

Poulterer,  Bertie  M 

Poulterer,  M.  A 

Powell,  Wm.  W 

Popp,  J.  J.  F 

Pooley  Bros 

Potts,  Mrs.  Kate  M 

Potter,  Geo.  C.,  &('o 

Porter,  Chas.  M 

Porter,  Julia  H 

Potter,  John  E.,  &  Co 

Portuondo,  J  uan  F 

Pond,J.B 

Plowman,  Geo.  Co 

Pyle,  Katie  H.  B 

Pyle,  John  J 

Quick,  Chas.W 

Quick,  Philip 

Qninn,  M.-iry  S 

Rand,  Mary  W 

Ramsdell,  J.  G 

Rainey,  Jas 

Rank,  Annie  M 

Raynumd,  W.  I 

Rahnn,E.C 

Rawle,  C.C 

Racine  Wagon  Co 

Randolph,  H.M 

Rambo,  Elizabeth  A 

Rafsny der,  Edwin 


National  Bank  of  Philadelphia,  Penna.f  etc. — Continued. 


f/ist  of  deposit  or  H  of  the  Keytiiouc  Xntlonal  Jiattkof  Philadelphia,  Pcmia.,  efc. — Contiiiued, 


$74. 67 

67.00 

5.00 

5.18 

25.54 

511.98 

300.00 

3.92 

206.  99 

.')5. 49 

30.65 

1.84 

2.  .55 

2.88 

48.25 

33. 26 

660.  99 

20.  25 

590. 19 

3.33 

736.  67 

68.  .54 

37.  70 

30.  8S 

41.03 

59.  91 

475. 00 

.76 

13. 70 

1, 057. 85 

2.  ()2 
11.. 50 

311.69 

89.  14 

73.  03 

Ki3.  17 

7.67 

1,4<>X.  03 

.61 

5.  00 

182.  45 

101.33 

5.  00 

851.36 

1.50 

51.70 

244.  S8 

20.  09 

317..'>7 

7,  .53S.  5S 

3.  24 
49 
02 


243. 

31. 

666.27 

104. 18 

90.  00 

132.  99 

46.  32 

1,  445.  iio 

27.61 

36. 00 

7.  VH 

74. 90 

8.68 

488. 18 

5  75 

69. 29 

308.92 


Raymond,  C.  W 

Ramsey,  .1.  S 

Read,  Frank , 

Reed,  Thomas  B 

Rees,  Chas.  B.,  Sous  &  Co. 

Reynolds,  J .,  &  Son 

Reeves,  Abert  A 

Reed,C.E 

Reilly,Wm.A 

Renuaud,  M.  A 

Reckefus,  A.  A 

Reeves,  M.  S 

Reichard,  Mrs.  A 

Reis,  F.  8,,  1  reas 

Reichart,  Ennua  R 

Reed,  Ennna  C 

Relief  Fund  Order  Amitie 

Reilly,  Hu^h  J 

Reiszner,  I'rank 

Reinhardt.  Sevilla  A 

Reilly,Tho8 

Re])jdier,  Mary 

Riezler,  Otto 

Ritson,  Robt 

K'ielmiond,  E.C.  Co.,lini  .. 

Kishel,  A.C 

Rihlde.N 

Riilings,  P.J 

Ki<ketts,  L 

Ri«  hards,  F.  De  B 

Rightrr  iS:  (Jibson 

Richmond.  E.  ( ".,  agt 

Ridley  Park  Cold  8p'g  Co 

RiehmoiKl,  Jas 

Riddle,  Wm 

KMshel,  A.  ('.,  nigr 

Rishel,.l.l).,&  Co 

Koden,  H.(; 

Rogers,  Sarah 

Kothengathrr  A:  Dillon. .. 

K(»ckhill,A.C 

Robinson,  L.  M 

Robinson,  .John  

Rodney.  C.H 

Roney,  C.  E . ,  t  rea  s 

Roberts.  .1.  R.  Evans 

Root,  A.  P 


RothHchild,  J.,  &(•«)... 

Rothe,  Mrs..!.  K 

Rogers.  .1.  H.,  jr 

Roch ford,  .las.  L 

Roberts,  (i«'o.  W.,  treas. 

Ruppert,  Maud 

Russell,  \).  Si  J 

Rudhavt,  A.  (t 

Russell,  (U'o.  B 

Russell,  R.  P 

Rutherford,  .las , 

Rup])ert,  .J.  H 

Sway ne  &  Wagner 

Sankey,  S.  K' 

Stankowit«'h,  Anthony. 

Swayn*',  .John 

Stang,  (ieorgif 

Stang,  Mary,  ex 

Stang,  Aug 

Soliter,  John  G 

Satterthwaite,  E 


$140.  85 
328.09 
52.46 
93. 55 
2, 185.  73 
521.07 
3.37 
245.  (X) 
531.98 
37.  73 
378. 26 
68.07 
1.11 
44.48 
7.18 
12.  .57 
1;  796.  ;i5 
6.56 
7.08 
76.  24 
24.38 
95.00 
48.44 
116. 25 
2, 445.  78 
614.97 
184.  30 
:i4.K8 
93.  25 
1.39 
573. 92 
4.31 
618.  19 
4.84 
28(>.32 
3. 31 
499. 61 
1.58 
250.00 
429.  29 
569.65 
61.88 
506.37 
35.83 
316.  28 
505. 30 
79.  70 
672. 46 
57.  00 
19.  (X) 
10.  a5 
3,  395. 16 
110.53 
500. 15 
62.91 
10.1. 50 
9.74 
.45 
75. 00 
2.76 
6. 94 
1 16. 98 
17.  20 
1,  637.  20 
157. 69 
925. 92 
596.  99 
709.63 


l> 


Sehafl'er,C.T 

Seattergood,  Mrs.  Geo 

Seattergood,  (ieorge 

Snaw,  tJ.A  ................. 

S<*attergooil,  Chas 

Sa  j.'-er,  M 

Sanborn,  Frank  A 

Staples,  Horatio 

Sa  jons.  Chas.  E 

Sh'arratt,  W.  H 

Sliar]),  Benj .  H 

Savidge,  A.  H 

San  ford,  (leo.  A 

Stanhoi)e. .) .  B 

Sayre.s,  Amos  B :  — 

Sh'ai-]),  J .  1 ).  M.  D 

Stanley  Bradley  Pub.  Co... - 

Stankowiteh,  Emily 

Sanford,  Walter  S 

Salin,  Chas.  S.,  treas 

Strawbridge,  J.  B 

Shane  Bros 

Saul,M 

Sternberg,  Constantine 

Scheible,  Wm 

Sea  Girt  Land  &  Imp.  Co  . . , 

Stet8er,W.H 

Steele,  R.W 

Steel,  Robt 

Steel  &  Hill 

Schermerhorn,  L.  Y 

Sweeney  &  Cunningham  . .. 

Smedley,  Saml.  L 

Stretch,  John 

Sterner,E.Y 

Sweeting,  T.  Henry 

Shelleuberger,  C.N 

Shreve,  Virginia  C 

Seddons,  Jos.  Lons 

Stephens,  Cooper  &  Co 

Street,  Alice  M 

Seiser,  Benj 

Steel,  Ferd 

Senior,  Jas 

Steel,  Theo 

Sheatz,  John  O 

Street,  Lewis  C 

Stern,  Max 

Stevens,  A.  F 

Skerrett,  Kathryn  G . . . . 

Spear,  Annie  F.  A *. 

Seymour,  E.C 

Steel,  Davis  W 

Schermerhorn,  C.  H 

Schmellick,  Paul 

Steel,  Jas 

Steel,  Lourane  C 

Se well,  Mary  A 

Sheffield,  Oscar 

Smith,  Mabel  C 

Schippell,  Julius 

Shirley,  Geo.  W 

Sliker,  Rufus 

Smith,  Geo.  H 

Smith,  Frank  A 

Smith,  A.  A 

Smith,  A.J 

Smith,  Josephine  B 


$26. 
63(5. 
3,  383. 
270. 
335. 
410. 

232*. 

18. 

293. 

1, 450. 

6. 

3. 

32. 

1, 195! 
1.56. 

78. 
100. 

21. 

49. 

357. 

126. 

574. 

2. 

65. 
128. 
137. 
20(}. 
727. 
147. 
397. 
419. 

27. 

34. 
291. 
585. 

10. 


41 

42 

38 

19 

78 

00 

10 

98 

86 

95 

81 

36 

87 

42 

70 

05 

85 

53 

69 

32 

25 

56 

27 

87 

02 

80  I 

6«! 


»> 


5. 
5. 

98. 
2(K). 
112. 

33. 
159. 
424. 


98 

32 

01 

03 

29 

39 

62 

35 

83 

00 

91 

6« 

83 

87 

12 

37 

50 

52 

-.22 

39. 41 

1, 573. 17 

89.72 

10.16 

305. 40 

85. 88 

2, 096. 62 

4.80 

63.33 

2,  478.  75 

1,  050. 00 

.78 

25. 00 

5, 000. 00 

78.72 

.04 

31.  .58 

.19 

72.63 

468.81 

45.00 


Smith,  Walter  H .t4JK '«> 

Smith,  Robt 1. 07 

Siegert,  B.  Frank 51 .  26 

Siggons,  L.  K 1. 00 

Siggons,M.H 21.00 

Simmons,  W.J 16.80 

Simons,  G.  J  and  C.  R 5. 59 

Spittall,  Geo.  P .91 

Shields,  Edw 400.00 

Strickland,  W^m 6. 00 

Sinnnons,  Mary  E 381. 63 

Smith,  Henrietta  H 440. 05 

Simpson  &  Murray 299.  Ot 

Simpson,  A.  Curtin 4.  72 

Siner,  John 26. 51 

Smith,H.H 1.42 

Smith,  S.  Anna 37.  .55 

Springman,  G.  Harry 85.  33 

Si)illman,  Margaret  L 7. 20 

Sidebottom,  Wm 74.  60 

S]>ring  Lake  Beach  Imp.  Co.  105.  78 

Smith,  Edw.E 102.00 

Smith,  Grace  F .87 

Simpson,E.  P 136.25 

Stiteler,  R.  D 2.00 

Spillem,  Sallie  N 200. 00 

Sc^^itt,  J.  T 41.72 

Schoft,  H.  K 259.30 

Schofield,  Eliza  F 9.20 

Stokes,  Clayton 741 .  29 

Sooy,  L.  B  \ 394.08 

Stoiie,  Stewart 49. 46 

Stokes,  Robt 1.39 

Stout,  Jas .348.95 

Schoolman,  C.  F 701.87 

Shoemaker,  .J.  K 87. 37 

Stool,  Wm.,  jr 1,  203. 93 

Stone,  C.  H 33.99 

Scott,  Mary 200. 00 

Stocks,  F.  E 581 .  .57 

Shoemaker,  L.  B 37.  74 

SoUers  Shoe  Mfg.  Co 41. 85 

Sho well  &  Fryer 460. 35 

Stokes,  Mrs.  S.J 187. 64 

Solomon,  Hermon 400. 00 

Supiot,  Francois 40.  42 

Supreme      League      Golden 

League 1,071..34 

Suplee,  Harry  T 26.  .56 

Summers,  C.  A.,  treas 13. 16 

StuU,  G.  W.,  treas 153.67 

Squires,  John  E 10. 47 

Schultz,  A.  G 210.19 

Stull,  Geo.  W 3.28 

Summers,  Geo.  W 248. 31 

Smy the,  Adam .563. 82 

Snyder,  Emily 265. 50 

Snyder,  J.  F 415.89 

Snyder,  A.  P 407.76 

Taylor,  Isaac  F 80.18 

Taylor,  John  B 19. 32 

Taylor,  Edw.  J. ,  treas 100. 84 

Taylor,  Isa  ac  &  Son 42. 27 

Trask,  A.  K.  P 4.04 

Twaddell,  John  P 342.67 

Todd,  J .  Liberty 19. 66 

The  Universal  Order  Coop- 
erative   440.73 


'  '<i 


■i 


I 


278 


INVESTIGATION   OF   NATIONAL   BANKS. 


List  of  depositors  of  the  Keystone  Xational  Bank  of  Philaclelphia,  Penna.,  c<c.— Continued. 


II 


The  Harvov  Filley  Co $173. 95 

The  Hainerick  Tank  &  Bar- 
rel Co 666. 87 

The  Bird  Printing  Co 9(j.  81 

TIio  Homcppathic  Physician.  102.77 

Tlie  Excelsior  Hosiery  Co. ..  2. 34 
The     Mutual     Banking     & 

Surety  Co 21,181.88 

The  Mill  ward  Cliff  Cracker 

Co 37.49 

•  The    Kelsey    Oriental    Bath 

Co .' 89.41 

The  Provident   (Jas    Pro«M'Ns 

Co «18.22 

The  Singer  Mfg.  Co 3,  28().  31 

The  Dairymen  Sui)ply  Co ...  770. 41 
The    Fire    Extinguish«*r    of 

America 14. 67 

The    Philada.  Carriage   and 

Harness  Co 46.64 

Thegan,  \Vm 1. 96 

The  8o.  12th  St.  Keal  Estate 

Co 63.27 

The  Philada.  Bond  and  In- 
vestment Co 8, 910. 00 

The  Drake  &  Stratton  Co., 

Lim 596.83 

Tie<h;mann,  H 161. 06 

Tighe,  .John  H 121. 45 

Tribon.D.H 10.93 

Tierney,  Thos.  F 1.66 

Twihill,  Thos.  P .20 

Thomas,  R.  R. ,  &  Co 2,  225.  34 

Thomas,  A.  C 127. 44 

Thomas,  C.  Wesley 464.  62 

Thompson,  E<1.  H '. 234.  73 

Thompson,  John 233. 97 

Thorp,  Jas.S 5..S0 

Tappin,R.M 1,500.00 

Torr,C.C 932.01 

Thorn,  Wm 9.38 

Thompson,  Jas.  R 38. 16 

Town,  F.  G 10.-».  14 

Thompson,  Jolm  B 170. 98 

Torr,  Wm.  S 1,  395.  89 

Tolan  C 602.08 

Thorn,  K.R 781.00 

Thomas,  M.  &  Sons 239. 90 

Tuppen,J.P 276.53 

Turner,  J.  F 111.58 

Turner,  Geo.,  jr 401. 39 

Turner,E.A 56.90 

Turnhull,C.S 41.40 

Turner,  H.M 487.00 

Trymhv,E.D .29 

Tyndale  &  Mi  tehell  Co 665. 89 

Trydav,  Walter 121. 41 

Trymliv,  Hunt  &  Co 2,  018. 14 

'  U.  S.  Thermometer  Co 119. 92 

Union  Credit  Co 10. 08 

Uber,Geo.  W .46 

Ufford,  Eugene 80. 51 

Van  Beil,  H.,  personal 510. 41 

VanBeil  &.  Co 3,949.84 

Van  Leer,  John  F.,  jr 93. 61 

Vaunt,  Mem.  L 175. 52 

Van  Lear,  Lizzie 789. 58 

Vallette,Dr.W.H 2.09 


VanGundeu,C $335.51 

Vail,  LouisaT 56.96 

Verner,  Semplc 299.  27 

Vieweg,  Geo.  H 2.22 

Viennot,  J.J 40.03 

Vogel,  Thco 7. 07 

Wain  Wright,  E.  M 175. 37 

Wanamaker,  .lohn,  exchange 

ac 421.34 

Wiinanuiker  &  Brown 1, 922.  .59 

Wanamaker,  Mary  Lowber  .  9. 86 

W^anamaker,  Thos.  B 1 10. 81 

Warwick  &  Co 16.86 

Wallace,  William  W 12.89 

Watson,  Pat'k 182. 80 

Walraven,  Guy  E.,  trustee..  460.26 

Waples,  E.  B 9L  11 

Warner,  Wm.  B.,  &  Co 864.00 

Walker,  Elizabeth  H 70.69 

Walker,  Jacob 56.37 

Warrick,  Wm 3.31 

Walsh,  L.  \y 76.66 

Wagner,  Adolph 26. 93 

Wame,  M.E 236.07 

Wain,  CM 96.60 

WattifeLeedom 190.88 

Wanamaker,  Fernanda  H.. .  28. 12 

Ward,  John  W.,  &  Co 322. 13 

Walton,  Fred.  M.,  &  Co 1, 696. 77 

Wanamaker,  L.  R 47. 68 

Wall&Ochs 822.57 

Watts,  Geo.  W^ 345.70 

Warner,  W.  B.,  agt 141. 97 

Walsh,  N.J .04 

Ward,  Enmia  M 95. 10 

Ward,  Mrs.H.E 6.25 

Wavne  Stone  Co 104.37 

Waite&  Hills 179.95 

Watt,  John  C,  treas 20. 89 

Watson,  J.T 15.00 

Watson,  Clarence  M 15. 00 

Warner,  W.  Y 1,  010.  74 

Walsh,  J.  M.  &  Co 117.68 

Weed,  (Jeo.L 488.59 

Wheeler  &  W  ilson 1, 639. 07 

Weintir,  M.  H .12 

Whetstone,  Mrs.  M.  G 422. 88 

Webster,  H.C 18.86 

Wendell  &  Smith 138. 92 

Weber,  C.  Phillip 2. 18 

Weber,  H.J...*..., 122.21 

Weaver,  S.  Rush 8. 40 

Wertz,  D.A 52.00 

Weaver,  W .81 

Wetherill,  A.  Lawrence 379. 37 

Wernicke,  Hermann .62 

West  Philada.  Brick  Co 344. 47 

Wenger,  Jos.  E 4. 78 

Webb,Jud8on 750.00 

Wells,  Geo.  B 177.67 

Williams,  H.W 677.03 

Wilson,  Jacob 947.29 

Wilson,  J.  Dale 73. 73 

Wilson,  Jas.C 39.95 

Wilson,  W.T 272.15 

Wilson,  Matthew 162.  ,33 

Wilcox  &.  Gibbs 492.86 

Wiley,Myra  C 320.03 


INVESTIGATION   OF   NATIONAL    BANKS. 


279 


Listof  depositors  of  the  Keystone  National  Banlof  Philadelphia,  Penna.,  efc— Continued. 


Whiting,  Mrs.  Fannie  Ken- 
sett  

Willoughbv,  Wm.  M 

Wilev,  Robt.  M 

Wright,  H.  C,  ag't 

Whitty,W.H 

Whit«,  Jas.  R.,  m'g'r 

Wilbour,  .T.  A 

Wilkinson,  John,  trustee 

Williams,  Jos.  K 

Wills,  David 

Wiltbank,  Geo.  M 

Wint,  Marvin  S 

Wiley,  JohnH 

Wittenmever,  Ann  ie 

Whittaker,  May  E 

Whitehead,  Wm 

Wilder,  Albert 

Wliite,JohnR 

Wilmington  Dental  Co 

Whitman,  Stephen  F.  «&r  Sons 
(store  account) 

W^hite,  Smith,  Pub.  Co 

Wilson,  John  M.,  ag't 

Whittier,  Wm.  W 

Whitman,  Stephen  F.,  &  Sons 
(factory  account) 

Whitakei,  H.  li 

Whitby,Geo.G 


Wllson,E.l $5.15 

$155.11     Wood,Wm.B 466.87 

2.40     W\'ilford.  W.  S 25.49 

315. 95     Women's  Silk  Culture 166. 67 

L25     Woods,  Robt 623.82 

84. 09     Woods,  John  J 498. 11 

12.49     Wood,  Mrs.  M.R 95.65 

1,99.5.28     WoM,  L.M.D 430.13 

96.77     Workman,E.S .60 

1,  .5.32.  ,53     Woodward,  Jeanette 2. 50 

479. 93     Wood,  George  A 95. 12 

48.  .52  \  W^olfe,  Annie  E.,  adm ,  142. 81 

39. 36     Worthington,  J.  C 4. 35 

10. ,57  i  Wyeth,John(Westtown)  ...  93.80 

2. 40     W> eth,  Jolm  ( Philada.) 62. 49 

24  3.  66     Yea  t  ts  &  Troth 847. 73 

1. 59  I  Young,  Ephraim 9. 64 

17.20      Young,  Robt 1,129.43 

68. 42  '  Young,  Thos.  S 310. 71 

11.20     Young,  Jas.  P 150.01 

i  Young,  John 6,248.04 

800.  71     Zeckwer,  Richd 471. 95 

158. 91     Petty  balances  Ledger  A  to 

3.78         G 2,699.12 

.  69     Petty  balances  Ledger  H  to 

;      o. 5,694.80 

6, 517. 50     Pettv  balances  Ledger  P  to 

32.83,      Z: 1,757.06 

83. 63  ;  Transient  collections 4, 565. 46 


Exhibit  3  of  May  5, 1892. 

Daily  state  of  the  Keystone  National  Bank,  1891, 


Due  bills 

Capital  stock 

Circulation 

Profit  and  loss 

Interest  

Discount 

Exchange  

Surplus  fund 

Bills  discounted 

U.  S.  bonds 

Redemption  fund  with  U. 

S.  Treasurer 

Furniture  and  fixtures 

Premium 

Expenses 

Dividend 

Individual  deposits 

Due  by  and  tu  banks  and 

bankers 

Tradesmen's  Nat.  B'k,  N.  Y. 

Chase  Nat.  B'k,  N.  Y 

Cash 

Suspense 

Shorts  and  overs 

Certificates  deposit 

Stocks  and  bonds 


General  ledger. 


Jan.  24. 


Assets.    I  Liabilities. 


$7. 125. 53 
365. 53 


$16,697.22 

500,  000.  00 

45,  000.  00 

11,  516.  97 


5,  834. 63 


Feb.  16. 


Assets.    I  Liabilities. 


1,117,949.08 
50, 000. 00 

2, 250.  00 

10,  000. 00 
2, 000. 00 

11,  652. 97 


$50,494.58 

i  500,000.00 

!     45.000.00 

!     11,516.97 

$12,505.21  i 

7,610.44 

784.29  ' 

100,000,00  I :  100,000.00 

'  980,344.54 


Feb.  28. 


Assets. 


$12, 466, 58 
"i."  333. 54 


949,  843. 40 
50,000.00  i I     50,000.00 


Liabilities. 

$39, 859. 70 

500, 0{)0.  00 

45,000.00 

11,  516. 97 

16*552.95 

166,666.66 


Aiheville,  N.  C,  "Western 
Carolina  Bank 

Baltimore  Citizens'  National 
Bank 


12.  480. 15 

28,  652. 45 

52.  724. 70 

119, 309. 65 


6, 120. 00 
719, 288. 59 

7,  552. 45 
2, 500. 00 


2,250.00  I !      2,250.00  i 

10,000.00  I i    10,000.00    

2,000.55  ' !      2,000.00  I 

20,147.65  i '    21,459.91  ! 

I       6,120.00  i I        6,120.00 

1,308,078.56  , :!,  245, 012.71 


51,783.93 

25,  20U.  98 

S.  846.  28 

280. 929. 53 

209, 326. 20 


453,  810.  02 


6,812.84  !  56,403.86          6,719.72 

!     12.711.09    

!      6,274.58  I 

!  265.044.70  I 

653.33         1,097.45    

77,701.91    ;      48,371.91 

423,810.02  ; 


1,414,509.86 


164.34 


1,414,509.86   2,113,088.63   2,113,988.63   2,013,153.96   2,013,153.96 


305. 97 
5, 675. 10 


27.50 


^'13 


2,233.75  !. 


4 


280 


INVESTIGATION    OF    NATIONAL    BANKS. 


I' 


ExJiiitiT  3.— Daily  state  of  the  Keystone  Xalional   lionh,  /,W/— Cuiitinncd. 


\ 


t- 


K 


General  h-ilger. 

Jan.  24. 

Feb.  16. 

Feb.  28. 

Assets. 

Liabilities. 

Assets.    !  Liabilities. 

1 

Assets. 

Liabilities. 

Batavia,    N.    Y.,  Bank  of 
Batavia 

$575.44 

Batovia.  N.  Y.,  First  Na- 
tional Bank 

$945.18 
283.  67 

$2, 134. 10 
319  32 

$3, 814. 87 
244  32 

Bristol,  Pa.,  Fai-mera'  Nat. 
Bank  of  Bucks  Co 

Boston  Nat.  Bank  of  Com- 
luiTce 

$387. 65 
393. 02 

1 

11,  241. 99 
4,641.80 

$4,462.79 
785. 80 

Caniilen,    N.  J.,    National 
State  Bank 

1 

1 

Charleston,  S.  C,  Carolina 
Savinjia  Bank 

923.  95 

1, 235. 07 

1  40.'!  04 

Waslin  Nat.  Bk.,  N.  Y 

"'  2,"  460."  23' 

i 

Chester,  Pa.,  Delaware  Co. 
National  Bank 

4.89 

.344.  62 

•>13  04 

Chicago,   IIU.,   Fort  Dear-  ; 
born  National  Bank '         605,  51 

5. 887. 71 

ft,  700.  71 

1 

CoBshohocken,   Pa.,    Firet 
National  Bank 

i 

20.61 

Downingtowu,  Pa.,  Down- 
ingtown  Nat.  Bk 

East  (ire<'nville.   Pa.,  Per- 
kionien  Nat.  Bank 

Frankford,   Phila.,   fciecontl 
National  Bank 

91. 13 

77.42 
2.70 

2.  6.'i3. 27 

2  (\W  95 

tJernjantown,    Phila.,   Nat. 
Bk.  of  Germuntown 

4,  285.  55 

6, 903. 76 

Harrisburg,  Pa.,  First  Na- 
tional Bank 

.15 

Honey  brook,  Pa.,  First  Na- 
tional Bank 

Integrity     Title   Ins.    and 
Trust  Co.,  Phila 

2. 

413. 

165. 
139. 

Jenkintown,   Pa.,    .Tenkin- 
town  National  Bank 

1. 

Lancaster,  Pa.,  Betid.   Mc- 
Grann  &  Co 

695. 36 
2, 814. 81 

293. 58 

n6ft  (K) 

Lewisbnrg,  Pa.,  Union  Na- 
tional Bank 

Lebanon,  Pa.,  Lebanon  Na- 
tional Bai.k 

• 

787. 16 
552. 72 

i 

Manayuuk,   Phila.,    Mana- 
vunK  Bank 

96.32 

•1  77«  no 

Media  Northern  Nat.  B'k . . . 

U.  S.  Fund 

::::::::::;:: 

776. 97 
*  1,999.06 

977.  98 

Norristown  Nat.  B'k 

Pittsburg  Nat.  B'k 

101. 50 

82.40 

2.  195.  70 
2,  003. 57 

Pottstown  Nat.  B'k 

Potts ville  Nat.  B'k 

336. 50 

2,023.64 

"^■■■22.'i7" 
23.20 
4.52. 33 

210.84 

Reading  Nat.  B'k 

84.38 

21  30 

Kichwoud  Nat.  B'k 

1 

169. 25 

Steelton  Nat.  B'k 

638.15 

440  33 

Scran  ton  Nat.  B'k 

747.84 

755  78 

Washington  Nat.  B'k 

719.50 

2. 195  92  ! 

1^2  87 

Wheeling  Nat.  Bank 

428. 80 

{KM.  68 

2.  267. 82 

12.5. 70 

West  Phila.  Nat.  Bk 

2.  his.  91 

West  Chester  Nat.  B'k 

886.  20 
5,  318. 62 
91.00  ' 

Wilmington  Nat.  B'k 

Atlanta  Nat.  B'k 

Toronto  Nat.  B'k 

Chester  Nat 

164.62 

2.56 

2  .56 

Dover  Nat 

2,500.00 

12.000.00 
165.  65 

Tradesmen's  Trust 

108. 40 

Chester  Val.  B'k 

Coatesville  Nat.  B'k 

2,476.20 

Chicago  Ist  Nat.  B'k 

8,000.00 

12, 480. 15         7, 552. 45  j    51,  783. 93  j      6,  812. 84 

56, 403. 86 

6, 719. 72 

INVESTIGATION   OF   NATIONAL   BANKS. 


281 


By  INI  1.  Wike: 

Q.  Wliut  is  tlic  date  of  tliis  repGif  tlic  cliaiiinan  n(>w  has  in  liis 
band!    T\w  dat('  of  tli<'  lettor  was  May  11.— A.  It  is  May  18. 

Q.  It  appears  seven  days  after  the  letter  from  the  comptroller,  insist- 
ing that  Drew  shall  furnish  a  schedule.  It  is  probably  customary  to 
furnish  merely  the  account.  The  presumption  is  that  there  is  no  re- 
I)ort? — A.  We  will  presume  nothing.  If  it  is  in  the  office  it  will  be  pro- 
duced. 

Q.  This  covers  the  two  points ;  all  the  items  between  the  time  the 
examiner  took  possession  and  the  time  the  receiver  was  appointed  ap- 
pear in  this  report! — A.  Yes,  sir. 

Q.  So  that  that  will  appear,  whether  you  produce  the  other  or  not  ? — 
A.  Certainlv. 

By  the  Chairman: 

Q.  Of  course,  Yardly,  in  making  up  this  report,  was  necessarily 
guided  by  the  information  furnished  him  by  Drew  and  from  the  books  of 
the  bank  whicli  had  been  in  Drew's  custody! — A.  He  would  be  guided 
to  this  extent,  that  he  receipted  for  every  item  Drew  states  was  in  the 
bank  on  March  20.  Mr.  Drew  must  either  x>roduce  the  assets  or  the 
money  collected.  The  statement  is  complete  and  shows  a  general  his- 
tory of  the  transactions. 

By  Mr.  Wike  : 

Q.  It  occurs  to  me  that,  in  order  to  arrive  at  a  certainty  in  this  par- 
ticular and  to  know  the  exact  condition  of  the  bank  on  that  day,  we 
should  have  a  statement  of  it.    Does  this  show  it! — A.  Yes,  sir. 

Q.  If  it  had  been  shown  on  that  date  or  within  two  days  after  the 
examiner  took  possession  this  would  be  sufficiently  accurate! — A.  Un- 
doubtedly the  records  and  books  there  show  all  this,  but  it  was  not 
necessary  to  transcribe  them  and  send  them  to  the  office.  They  are 
there  now  and  have  been  there  since  Drew  took  charge  of  the  trust. 

By  Mr.  Walker  : 

Q.  It  is  simply  a  question  of  being  there  or  being  here.  The  items 
are  all  here,  but  not  assorted. — A.  We  only  require  to  have  transmitted 
to  us  such  as  we  need.  The  books  are  in  the  custody  of  the  receiver 
and  subject  to  the  examination  of  this  committee  or  anybody  else,  and 
they  show  any  transactions  during  that  whole  ])eriod. 

Mr.  Wike.  The  statement  we  have  here  was  made  months  after  the 
transaction.  There  ought  to  have  been  one  made  at  the  time  the  exam- 
iner took  possession  for  the  Government. 

Mr.  Payson.  It  purports  to  be  of  the  very  date  when  the  examiner 
took  possession. 

Mr.  Walker.  It  was  transcribed  on  that  date. 

The  Witness.  The  record  is  made  by  the  Government  through  its 
agent,  the  examiner,  and  it  is  left  with  the  receiver,  and  is  there  subject 
to  any  examination  which  may  be  hereafter  made. 

By  Mr.  Wike  : 

Q.  The  receiver  simply  takes  what  the  examiner  turns  over  to  himf — 
A.  Whatever  the  Government  does  has  to  be  done  through  its  agent. 
That  agent  was  the  examiner  and  that  examiner  took  possession 

Q.  (Interposing.)  And  run  it  for  three  or  four  months  without  having 
started  with  a  statement  to  the  Government? — A.  It  was  about  50  days. 
That  was  on  account  of  the  continuous  expectation  of  resumption.  Mr. 
Drew  must  explain  that  for  himself. 


(    i;; 


!'.■' 


I' 


I' 

sit?-' 


282 


INVESTIGATION   OF   NATIONAL   BANKS. 


The  Chairman.  It  is  understood,  then,  that  the  eomiiuttee  desire  a 
further  search  in  your  office  for  information  as  to  whether  or  not  you 
have  in  your  office  the  schedules  made  by  the  examiner  of  the  assets 
and  liabilities  of  the  l)ank  when  he  took  possession  of  it  under  your 
order.    If  you  have  such  we  desire  a  copy  of  them.  - .,    . 

The  Witness.  (To  Mr.  Stoddard.)  Make  a  memorandum  of  that. 

By  the  Chairman  : 

Q  That  brings  us  down  to  the  point  where  the  receiver  had  taken  pos- 
session of  the  property.  1 1  a ve  yon  any  list  of  the  persons  against  whom 
assessments  were  made  as  stockholders  of  the  bank?— A.  No,  sir;  the 
assessment  is  made  by  the  Comptroller  in  bulk,'and  the  particular  per- 
sons charged  with  being  stockholders  and  with  having  incurred  indi- 
vidual liability  is  ascertained  by  the  receiver,  and  he  eniorces  the  col- 
lection of  those  particular  items. 

Q.  Is  there  any  report  of  the  persons  against  whom  he  makes  assess- 
ments as  to  the  number  of  shares  and  the  amount  of  eacli!— A.  I  think 
not.  I  recpiiied  him  to  send  me  at  one  time  a  transcript  Irom  the  stock 
ledger  showing  those  who  were  represented  as  stockholders  when  he 

took  possession  of  the  bank.  .       .     .,  j     i 

Mr.  WiKE  (to  the  chairman).  Is  there  anything  in  the  record  show- 
ing the  reason  for  the  increase  of  the  Sea  Girt  property  at  the  time  ot 

the  second  reports  .,    .  -^  .  i 

The  Chairman.  There  is  nothing,  except  that  it  was  increased. 
The  Witness.  Mr.  Drew  states  in  his  correspondence  that  he  had 

taken  pains  to  investigate  the  value  of  the  Sea  (Jirt  property,  and  had 

come  to  the  conclusion  that  it  was  worth  $700,000. 

By  the  Chairman  : 

Q.  There  is  a  list  attached  to  this  exhibit  of  the  stockholders  as  they 
appear  upon  the  books  on  March  20,  1891?— A.  Yes,  sir. 

U  I  think  you  have  testiiied  that  there  was  in  the  list  furnished  you 
of  the  stockholders  on  June  1,  which  was  produced  and  put  m  evi- 
dence, and  this  is  the  one  which  accompanies  the  report,  i  he  law 
requires  that  a  list  of  shareholders  shall  be  furnished  to  the  Comptrol- 
ler as  of  the  first  Monday  in  July  of  each  year.  That  list  was  lur- 
nished  for  the  first  Monday  in  July,  1889,  but  it  was  not  furnished  lor 
1890  —A.  There  was  no  list  of  shareholders  sent  to  my  office,  so  tar  as 
I  know,  between  the  first  Monday  in  July,  1889,  and  March  20,  1890. 

Q  I  understand  that  no  report  has  ever  been  made  by  the  receiver 
of  the  Keystone  National  Bank  of  the  persons  against  whom  he  made 
assessments  in  compliance  with  your  instructions  contained  in  your  let- 
ter—A. The  chairman  will  recollect  that  I  had  a  conversation  with 
liim  in  reference  to  the  sixth  paragraph  of  his  letter,  dated  April  21, 
which  reads  as  follows:  "We  shall  also  desire  all  correspondence  be- 
tween the  receiver  or  his  attorney  and  yourself  or  your  Bureau  relating 
to  the  assets  or  business  of  the  bank  and  showing  the  present  condition 
of  the  trust."  It  was  verbally  understood  between  myself  and  the 
chairman  that  he  would  h)ok  over  the  record  since  the  receiver  took 
possession  of  the  assets  and  select  out  such  papers  as  he  wanted  copied 
and  submittetl  to  the  committee.  1  should  prefer  not  to  make  any 
statements  with  reference  to  this  part  of  the  inquiry  without  having 
the  official  documents  before  me.  I  may  say  that,  so  far  as  I  uow  re- 
member, the  receiver  has  not  transmitted  a  list  of  the  names  ot  the 
shareholders  supposed  to  be  subject  to  the  assessment  for  individual 
liabilities. 


INVESTIGATION   OF   NATIONAL   BANKS. 


283 


The  chairman  calls  the  attention  of  the  witness  and  the  committee  to 
the  tact  that  the  sixth  paragraph  of  the  letter  relates  only  to  the  cor- 
respondence between  the  Comptroller's  office  and  the  receiver,  and 
desires  to  correct  the  recollection  of  the  witness  by  stating  that  m  tact 
the  conversation  between  the  witness  and  the  chairman  related  only  to 
the  correspondence  of  tlie  receiver,  and  it  was  with  regard  to  that  only 
that  the  chairman  accepted  the  suggestion  that  he  would  examine  the 
correspondence  at  the  office  of  the  Comptroller  before  the  certified 
copies  were  made;  and  to  further  call  the  attention  of  the  Secretary  to 
the  fact  that  the  inquirv  now  put  to  the  witness  refers  to  a  report^nd 
not  to  the  correspondence  between  the  I^ureau  and  the  receiver.  With 
that  explanation,  I  do  not  know  why  tliis  matter  of  the  receiver's  report 
should  not  wait  until  the  witness  be  given  further  time  tor  the  examin- 
ation of  the  records  of  the  offi(*e,  if  the  committee  agree  with  me  m 
that  opinion.— A.  We  are  very  glad,  and  very  willing,  to  furnish  certi- 
fied copies  of  everything  in  relation  to  the  trust  which  the  committee 
desires  to  have  submitted  to  it.  ^ 

The  Chairman.  Was  there  at  any  time  a  request  made  by  a  com- 
mittee of  the  citizens  of  Philadelphia  with  reference  to  an  investigation 
of  the  affairs  of  this  bank,  or  was  such  request  made  upon  the  Secre- 
tary to  your  knowledge!— A.  All  applications  for  permission  to  inves- 
tigate the  affairs  of  this  bank,  so  far  as  I  remember,  have  been  disclosed 
in  the  correspondence  which  has  been  read.  Certainly  all  that  has 
been  addressed  to  me  and  all  that  which  was  a  part  of  the  records  have 
been  submitted,  so  far  as  I  am  informed. 

Q.  You  have  stated,  I  think,  that  there  was  in  progress  now  an  inves- 
tigation'?— A.  Yes,  sir.  ,  ^. 

Q  I  do  not  know  that  I  am  able  to  identify  the  letters  relating  to 
that  investigation.— A.  That  is  not  under  my  direction,  but  under  the 
direction  of  the  Secretary  of  the  Treasury,  and  is  made  by  clerks 
detailed  from  the  Treasury  Department,  acting  with  certain  experts 
appointed  by  the  committee  of  citizens  of  Philadelphia.  My  recollection 
is  that  the  committee  of  Philadelphia  appointed  and  paid  for  four  ex- 
perts; that  five  have  been  detailed  from  the  Treasury  Department,  and, 
acting  lointly,  they  have  been  making  a  complete  examination  of  all 
the  books  and  records,  both  of  the  Keystone  Bank  and  the  Spring 
Garden  Bank,  since  the  1st  of  October  last,  and  that  said  exainination 

nearly  completed.  . 

Q.  Are  reports  of  the  progress  of  that  examination  made  to  you  or  to 
the  Secretary  of  the  Treasury  direct  f— A.  They  are  made  to  the  Sec- 
retary direct.  „      »     r,.,        ^      •  i  i-i 

Q.  And  do  not  come  to  your  Bureau?— A.  They  furnish  us  with 

copies,  but  not  the  originals.  ^        ., 

Q.  Are  those  furnished  from  the  Secretary's  office,  or  from  the  per- 
sons engaged  in  the  examination  ?— A.  From  the  Secretary's  office. 

Q.  Who  is  the  head  of  that  examination?— A.  A.  E.  Barrett. 

Q.  Has  he  been  in  your  Bureau?— A.  He  is  a  special  operator  m  the 
Division  of  the  Secret  Service  of  the  Department,  and  beholds  my  com- 
mission as  a  national-bank  examiner.  I  send  him  to  banks  which  it  is 
necessary  to  investigate  in  this  manner.  That  appointment  was  made 
as  a  matter  of  convenience  to  fiicilitate  the  investigation. 

Q.  That  was  an  investigation  undertaken  under  authority  of  letters 
which  you  have  read  here,  and  by  certain  gentlemen  for  the  city  of  Phil- 
adelphia?—A.  An  investigation  by  certain  experts  appointed  by  the 
city  council  of  Philadelphia,  in  relation  to  the  city  treasurer. 


■  r  i 


>  ■  4 

■■■■  I 
:      \ 


■'--■  :( 


a 


II   1 

I 


I*  i 


!'■' 


n 

i 

<    ■ ' 

284 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


285 


Q.  The  letter  was  jiddressed  to  the  mayor  of  the  city? — A.  There  was 
a  subsequent  ont^  made  by  th<'  eity  of  rhihi(h'Ii>hia. 

Q.  Is  the  one  made  by  the  mayor  comph^ted,  or  the  one  made  by  the 
experts  emi)h)yed  by  the  mayor? — A.  The  examination  disclosed  by  the 
correspondence  was  not  ma<te  by  the  mayor,  but  by  the  Secretary  of  the 
Tieasury,  who  employed  two  experts  designated  by  the  mayor.  Their 
report  was  made  to  the  Secretary  of  the  Treasury. 

Q.  And  was  not  transmitted  to  your  Bureau? — A.  My  recollection  is 
that  it  was  not.  I  would  not  say  whether  I  have  a  copy  of  it  or  not. 
It  was  transmitted  to  the  Secretary,  because  it  was  under  his  direc- 
tion. 

Q.  There  was  still  another  which  was  made  by  experts  employed  by 
the  common  council  of  the  city. — A.  There  was  one  made  by  experts 
employed  by  the  common  council,  which  was  the  first  investigation. 

Q.  Was  there  a  report  made  to  you? — A.  It  was  made  to  the  com- 
mon council  of  Philadelphia. 

Q.  Ko  copy  came  oflicnally  to  your  Bureau? — ^A.  No,  sir.  There  have 
been  at  least  fonr  examinations  of  the  afiairs  of  the  Keystone  National 
Bank — one  made  by  experts  apiK)inted  by  the  common  council  of  Phila- 
delphia; one  made  by  the  agents  of  the  governor  of  Pennsylvania; 
another  by  the  experts  named  by  the  mayor  of  Philadelphia,  appointed 
by  the  Secretary  of  the  Treasury;  and  the  fourth  is  now  in  progress 
under  the  direction  of  the  Secretary  of  the  Treasury,  by  experts  con- 
sisting of  employes  of  the  Treasury  Department,  detailed  for  that  pur- 
pose, and  four  experts  representing  the  committee  of  fifty  of  the  city  of 
Philadelphia.  The  latter  investigation  is  now  progressing,  and  is  very 
nearly  completed. 

Q.  Can  you  say  how  soon,  in  your  opinion,  it  will  be  completed? — A. 
I  should  suppose  w  ithin  a  ^  eek  or  two.  It  is  substantially  complete 
now.  It  is  now  being  conducted  with  reference  to  a  criminal  action 
pending,  and  another  action  with  reference  to  a  civil  suit  upon  due- 
bills  which  were  issued  by  the  Keystone  National  Bank  in  favor  of 
John  Bardsley,  treasurer,  amounting  to  some  $925,000,  which  did  not 
appear  on  the  books.  The  asignee  of  Bardsley  brought  suit  against  the 
receiver  to  recover  that  amount. 

By  Mr.  WiKE : 

Q.  Did  the  Treasury  officials  have  any  connection  with  the  gover- 
nor's investigation  ? — A.  No,  sir;  tliat  was  an  independent  investigation. 
That  by  the  council  committee  and  by  the  governor  were  entirely  inde- 
pendent. 


Copy  of  list  of  names  and  residences  of  shareholders  of  the  Keystone  National  Bankf  Phila- 
delphia, Penn.,  on  the  first  Monday  of  July,  1885. 


Name. 


Kesidence. 


Arthur,  Robt Philadelphia . 

Aguew,  Sain'l I do 

Jirintzinjf hoffer,  Chaa i do 

liurns.B.C do 

Brenueman,  B.  C Lancaster 

Brown,  R.  A Philadelphia. 

Buck,  Daniel do 


Crump,  H.J do 

Craig,  John do 

Chapin,G.  W do 

Chapin,  Sarah  C do 

Cooper,  Mrs.  D.  E ' do 

Clingan,  AdaN.,  Geo.  Brooke,  guardian |  Birdsboro.  .. 

Ditman,  I.  G j  Philadelphia. 

Dreka,  L do 

El'r  Div.,  Sons  of  Temp do 

Fields,  Geo.  F do 

Freedlev,  J.  K | do 

Garrett^  W^alter do 

Holbrook,  R.  M ..I do 

Howard,  Jaa.  W i do 


Hickman,  M.B 

Holbrook,  J  no.  O 

Hopkins,  Mrs.  M 

Johnson,  Henry 

Kemble,  W^.  H.,  pres't. 

Kerlin,  I.  N 

Lott,  W.  R 

Luca«  I.  Hunter 

Lucas,  W.  R 

Lucas,  Florence 

Lucas,  Samuel 

Lucas.  John  C 

Mellock,  J.M 

McCune,C 

McMullin,  Wm 

Morgan,  J  ames 

Murphv  Sous 

Matthews,  C.  T 

Moore,  A.M 

Omensetter,  S 

Otto,  Jno.  O 

PenneU,  W.  H 

Nichols,  D.  P.  S 

Norton,  C.  D. 


do 

do 

do 

Muncy 

Philadelphia. 

Media 

Philadelphia. 

do 

do 

do 

do 

do 

Harrisburg .. 
Philadeli»hia. 

do 

do 

do 

do 

do 

do 

Williamsport 
Philadelphia. 

do 

do 


Paul,  H.  S ' do 

.do 
-do 
-do 
-do 
-do 
-do 


Stokes.  Rich'd 

Stang,  Pter 

Wheeler.  M 

Webb  Mrs.  E.  D.... 

Ware,  W.  M 

Warner,  W.  R.  &  Co. 

Van  Beil,  Henry \ do 

Haines,  G.  B ! do 


No.  of 
shares. 


10 

25 

5 

10 

50 

25 

6 

21 

5 

7 

10 

2 

11 

20 

20 

10 

90 

20 

50 

5 

20 

100 

5 

5 

50 

10 

10 

10 

2 

2 

3 

20 

2,128 

20 

5 

7 

10 

20 

20 

30 

5 

10 

50 

20 

25 

10 

10 

10 

10 

20 

10 

100 

50 

791 


4,000 


State  of  Pennsylvania, 

County  of  Philadelphia^  sa  : 

I,  G.  W.  Marsh,  cashier  of  the  Keystone  Kat'l  Bank,  being  duly 
sworn,  depose  and  say  that  the  foregoing  is  a  full  and  correct  list  of 
the  shareholders  of  said  bank,  with  the  residence  of  each  and  the  nuni- 
Ijer  of  shares  of  the  stock  of  said  bank  held  by  each  of  them  on  the 
tirst  Monday  of  July,  1885,  and  that  the  same  is  a  true  copy  of  the  list 
of  shareholders  on  file  in  said  bank  on  that  day. 

G.  W.  Marsh,  Cashier, 

Subscribed  and  sworn  to  before  me  this  29th  day  of  July,  1885. 
Official  seal  of  officer. 

John  W.  Barron, 

Kotary  Fublic, 


t-TS 

-i 


*.  1. ! 


v.r 


286 


INVESTIGATION   OF   NATIONAL   BANKS. 


i  - 


Copy  of  list  of  names  and  residences  of  shareholders  of  the  Kci/stone  Natimial  Bank,  Phlia- 

delphia,  on  thejirsl  Monday  of  July,  1S86. 


[Name. 


Hesideuce. 


Arthur,  R 

Ajjiiew,  E 

Briutzinshoffer,  C 

Burns,  B.C 

Bnrennenian.  R.  ( ' 

irowii,  Kachel  A 

Buck,  Daniel 

Bare,  W.J 

Baiues,  ().  E 

Bradley,  H.H 

BradU'V.W.  H 

Beatty'M.  A 

Bender,  W.  A 

Byrd,  John •-•- 

Canning,  liotitia 

( 'amcross,  John  L 

Cattell,W.  C ~ 

( ^ooner,  H.  L 

(or,  W.  P 

Chai.in,(J.W 

Chapin,  Sarah  C 

Cooper,  Mrs.  D.  L 

Crump,  H.  L 

Crump,  Jolin 

Crump,  Sarah  K.,  Mrs 

Durham,  Johu  C 

Ditraan,  J .  ( r 

Dougherty  &  Downs 

Drekn,  Louis • 

Evaiif*.  W - ' 

Excelsior  Div..  Sons  of  Temp 

Elliott,  A .  G. ,  &  C:o - 

Frirka.  H.  A 

Freedley.I.K 

rjeld>4,  George  F. 

Fuchsiuger,  Louis • 

Garrett,  Walter ■ 

Gabel.  Geo.  '1'.,  jr , 

Goforth.M.A <)" 

Gilford,  J.  A I *j" 

Graham.  Mrs.  S.C *<> 


Philadelphia. 

do 

do 

do 

Lanca.Htor  . .. 
Philadelphia. 

do 

do 

do 

do 

do 

do 

do 

do 

, do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do , 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 


(ireen,  Henry  W 

Goble,B 

Greyson,  Joseph 

Groves,  Wm 

Haines,  Mrs.  Anna  M 

Heraty,M.P 

Heraty.E.J 

Hoopes,  D.  J • 

Hornickel  H.  A 

Holbrook,  R.  M 

Holbrook,  John  O 

Huber,  John  Y 

Hopkins.  E 

Hubl)ard,L.  Y 

Howard,  J.  W 

Hickman,  M.  B 

Hopkins.  Mrs.  E 

Hunt«'r,  J  ohn 

Jackson,  J.  T 

Jeitles,  J .  A 

J  ohnsou,  Henry 

Kerable,  W.  H..prest 

Kahlmus,  John 

Kerl in.  J .  N 

Keen,  Chas.  J 

Landaner,  M 

Laurence,  Chas 

Lex,  W.E 

Logan,  J.  P 

Logan,  Mrs.  Mary  P 

Lowrj',  A.  A 

Long,'B.C 

Long,  M.  V •. 

Lukens.C 

McFa«ldeii,  Chas 

Lnca.s,.JohnC , -•  -I «" 

Lucas.  Sam'l i d" 

McHride  Bros <jo 

McBurney.D 1 do 


do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

do 

Muncv,  Pa. .. 
Pliiladclphia. 

do 

do 

do 

do 

do 

do    

Weatcliester. 
Philadt'lphia. 

do 

do 

do  ...... 

do 

, do 


"N"o.  of 
shares. 


25 

50 

5 

10 

100 

25 

12 

20 

25 

5 

1 

10 

10 

8 

10 

50 

30 

7 

5 

7 

10 

2 

11 

10 

100 

10 

70 

20 

40 

10 

10 

50 

5 

40 

90 

10 

50 

4 

1 

14 

10 

20 

10 

20 

30 

50 

50 

50 

20 

5 

10 

10 

150 

5 

30 

20 

100 

5 

200 

40 

10 

100 

10 

40 

10 

20 

10 

20 
•I 

20 

]00 

1 

15 

20 

10 

500 

2,459 

20 

5 

20 


INVESTIGATION    OF    NATIONAL    BANKS. 
Copy  of  list  of  names  and  residences  of  shareholders,  etc. — Continued. 


287 


Name. 


Residence. 


Philadelphia. 

do 

do 

do 


McCausland,  W 

McClees,  J.  E 

McGilliam,  W 

McCune,  C ,  , 

McMullin,Wm I <  « 

Marshall  &  Co *}" 

Marsh,  Mary  J \ do 

Moloney,  Geo.  R ' "" 

Miller,  C.H 

Miller,  J...... - • 

Morgan,  J 

Malloch,  J.  M.  .......•.....-.....-.-•••••--•--■•••-•-••••••••" 

Moore,  Andrew 

Murphy,  Frank 

Matthews,  C.  T 

Myers,  Jacob 

Nace  &.  Swarthley 

Isewton,  C.  C i do 

Nicholas,  D.  P.  S • 1 "O 

Norton,  CD \ <j" 

Omensettor,  L d" 

Otto,Jno.O ; <|» 

do 

do 

do 

uo 

do 

do 

do 

do 


Over,  D.  A. 

Payne,  Geo.  F.,  Co 

PinnellW.H 

Penrose,  Emily 

Pajie,H.S 

Perot,J.S 

Pooley,I.B 

Portuondo,  J.  M.,  Co. . 

Preston,  Geo.  R <»o 

Richel,A.C *Jo 

Reed's,  Jacob,  Sons ] do 

Rees,  P.  Ashman | do 

Robinson,  J do 

Sharp,  Chas j ^^ 

Sheeler,  Sallie  M do 

Stang.  Peter j do 

Sautter,  Christian | do 

Steel.  Theo *^^ 

Sm i th ,  Walter  B \ <lo 

Shelleuberg  &  Stehle , do 

Shellenberg,  C.  N ; do 

Shellenberg,  Esther ! do 

Singerly,  Wm '' do 

Shirley,  Geo.  W ; do 

Stokes,  R..  Est i do 

do 

do 

do 

do 

do 


Supploe.  J.  W 

Taussig  &  Taylor • 

Torr,C.C 

Torr.  W.S 

Van  Beil.  Henry 

Van  Gunden  &  Young ' do 

Warner  &  Co - ' do 

Warner,  Mrs.  Sallie do 

Wheeler,  M do 

Whilldeuifc  Son • do 

Webb,  Mrs | do 

AVoodman  &  Co.,  G.  B | do 

Weaver,  D.  S i do 

Ware,  W.M I do 

Haines.  G.  B ! do 

McArthur.  D j do 

Stang,  Goo ' do 

Lucas,  Florence do 


No.  of 
shares. 


10 
12 

2 

5 

7 
5 
4 

3 
50 
2 
2«) 
20 
30 

120 
20 
50 
10 
10 

120 
25 
10 
20 

40 
20 
100 
5 
10 
5 
4 
4 
100 
5 
100 
4 
10 
6 
3 
10 
30 
5 
10 
25 
100 
10 
100 
10 
30 
100 
20 
5 
20 
150 
10 
150 
5 
20 
30 
20 
100 
10 
10 
791 
5 
50 
4 


State  of  Penna.,  County  of  Philad^a,  ss: 

G.  W.  Marsh,  cashier  of  the  Keystone  Nat'l  Bank,  of  Philad'a,  l>eing  duly  sworn 
deposes  and  says  that  the  fore«]:oing  is  a  full  and  correct  list  of  the  shareholdeTs  of 
said  hank,  with  the  residence  of  each,  and  the  number  of  shares  of  the  stock  of  said 
hank  held  by  each  of  them,  on  the  first  Monday  of  July,  1886,  and  that  the  same  is 
a  true  copy  of  the  list  of  shareholders  on  file  in  said  bank  on  that  day. 

G.  W.  Maksii,  Cashier. 

Subscribed  and  sworn  to  before  me  this  27th  day  of  October,  1886. 
[Official  seal  of  notary  public]  W.  W.  Duughkkty, 

Notary  Public* 


V 
in 


m 

^H 

,"#ifl 

^^^H 

% 

pH 

w^ 

.fi'X 

Mi 

W 

Hb 

'} 

.^^R; 

'    1  ■ 

' ....  1 


:! 


M 


288 


INVESTIGATION    OF   NATIONAL    BANKS. 


Copy  of  list  of  names  and  residences  of  shareholders  of  the 

first  Monday  of  July,  1SS7, 


National  Bank  on  the 


Name. 


Residence. 


Arthur,  Robt '  Philad'a 

Agnew,  Ed ' do  . 

Barr,  W.J ! do  . 

Baiues,  C.  E I do  . 

Bradley,  H.  H '■ do 

Biadlftv,  W.  B I do  . 

Briutzinchotter,  C do. 

Beatty,  M.  A ' do  . 

Bender,  W,  A ' do  . 

Burns,  B.  C ■ do  . 

Brenuenmn,  B.  F I do  . 

Brown,  K.  A ! do 

do  . 

do. 

do. 


Buck,  Dan'l 
Byrd,  John 

( 'anning,  L „„ 

Crump,  H.  J ' (|o 

Crump,  John do 

Cox,  W.  P do 

Cauthorn.P do 

T)reka,  L do 

Dittman  ,J.G do 

Durham,  John  C do 

Downs,  A.  C do , 

Excelsior  Div.,  S.  of  T do 

Evans,  W do 

Elliott,  A.  G.,  &  Co do 

Fields,  Geo.  F do 

Freeman,  H.  G do 

Frieka,  Henry  A do 

Gabel,  G.  F..  jr d(. 

Goforth,  W.  A do 

Graham,  Mrs.  S.  C do 

G reen.  Henry  "W do 

Gift'ord,  J.  J do 

Garrett,  Walter do 

Gregson,  Joseph do 

Groves,  Wm do 

Goblo,  Brookfee j do 

Heraty,  E.J t do 

Heraty,  M.  P I do 

Holbrook,  H.  M 1  do 

Howard,  J.  W 

Hibbard,  Mrs.  S.  T. 

Hickman,  M.  B 

HopkiuH,  Ed , 

Holbrook,  J  no.  C  ... 

Hoopes,  D.J 

Hopkins,  Mrs.  A  . .. 

Hornickle  H.  A 

Huber,  Jno.  Y 

Johnson,  Henry 

Jeitles,  H.  A 

Jackson,  J.  F 

Kemble,  W.  H.,  p't. 

Kahlmus,  Jno 

Keen,  C.J 

Kerlin,  Jno 

Landaur,  M 

Logan,  Jno.  P 

Lowry,  A.  A 

Long,  Benj.  C 

Long,W.V 

Lex,  W.  E 

Logan,  Mrs. M.  P... 
Lukens,  H.  T. 


do 
do 

-do 

do 

.do 

.do 

.do 

do 

do 

do 

do 

-do 

.do 

do 

.do 

-do 

.do 

do 

.do 

.do. 

do 

do. 

.do 

.do  . 

Mellock,  J.  M do  . 

McFadden,  C i do 

McBuniey,  D j do  . 

Mc  Arthur,  D i do  . 

McBride  Bros ! d©  ] 

McCuue,  A  ..^^ i..       "do 

do. 
do. 
do. 
do. 
do. 
do. 


McCausland,  W 
McClees,  J.  E . 
McGillian,  W 
McMullan,  W 
Morgan,  Jas. . 

Marsh,  M.J. .  ^ 

Murphy  &  Sons I . . . ! .  .do 

Helouey,  G.  K !!!.!!. do 

*$50. 


No.  of 
shares. 


*25 

50 

4U 

25 

5 

1 

5 

10 

10 

10 

100 

25 

12 

8 

10 

11 

10 

5 

4 

40 

7o 

10 

20 

10 

10 

50 

90 

10 

5 

4 

1 

10 

20 

14 

50 

20 

30 

10 

50 

50 

10 

20 

30 

100 

5 

10 

20 

5 

5 

150 

100 

10 

40 

10 

40 

20 

10 

10 

20 

1 

15 

30 

2 

100 

10 

20 

500 

ao 

5 
5 
5 

10 

12 

2 

7 

20 

4 

120 


INVESTIGATION    OF   NATIONAL   BANKS. 

Copy  of  list  of  names  and  revidences  of  shareholders,  etc. — Continued. 


289 


Name. 


Matthews,  C.  T. 
Miller,  C.  T.... 

Miller,  J 

Moore,  A.  M 

Myers,  J 

Nace,  S 


Newton,  C.  C... 
Nichols,  D.  P.  S 
Nirdlinger,  S.  F 
Nathans,  H.F.. 
Omensetter,  G.. 

Otto,  Jno.  A 

Over,  David  A. . 
Paynely,  F.,  Co  . 

Penrose,  E 

Perot,  Jno.  S  — 

Pooley,  J.  B 

Portuondo,  J.  F  , 
Pennell,  W.  H... 

Paul,  H.  S 

Preston,  Greo.  R  . 

Reed,  A.  H , 

Rees,  P.  A 

Richel,  A.  C 


Residence. 


Philad'a 

do. 

, do  . 

do. 

.....do. 
do. 


No.  of 
shares. 


.do 

-do 

.do 

-do 

-do 

.do 

-do 

-do 

-do 

-do 

.do 

.do 

-do. 

.do  . 

.do. 

-do. 

.do  . 

-do  . 

Sheeler,  L.  M [ do  . 

Sautter,  C.  H do  . 

Steel,  Theo i do  . 

Smith,  W.  B I do  . 

Shellenberger  &  Shcble ! do  . 

Shcllenberger,  E.  A^..._. I do  . 

do  . 
do. 
<lo  . 


Shellenberger,  Dr.  C.  N 

Shirley,  G.W 

Simmons,  W.  J  ... 

Stokes,  Est.  Richard I do 

Supplec,  J.  W ! do 

Stang,  Peter j do 

Stang,  George \ do 

Sharj),  A.  M | do 

Torr,  C.  C •. ! do 

Torr,  W.  S do 

Van  Beil,  Henry do 

Weaver,  D i do 

Warner,  W.  R.  Co ! do 

Warner,  Mrs.  Sallie i do 

Wootlman,  G.  B | do 

Wheeler,  M i...       do 

Webb,  Mrs.E.  D do 

Whilldin  <fc  Sons ! do 

Ware,  Hetty j do 

Haines,  G.  B ' do 

Robinson,  J .  W I do 

Wilgus,  Stanton ! do 

Lucas,  Jno.  C do 


20 
50 
2 
30 
50 
10 
10 
120 
40 
20 
10 
20 
40 
20 
5 
5 
4 
4 
100 
10 
100 
100 
4 
5 
3 
30 
5 
10 
25 
10 
100 
10 
10 
30 
100 
40 
50 
6 
5 
20 
200 
10 
100 
5 
100 
20 
20 
30 
10 
791 
10 
10 
3,015 


8,000 


Stato  of  Pennsylvania, 

County  of  Philadelphia,  ss  : 

G.  W.  Marsh,  cashier  of  the  Keystone  National  Bank,  heing  dulysworn,  deposes 
and  says  that  the  foregoing  is  a  full  and  correct  list  of  the  shareholders  of  said  hank, 
with  the  residence  of  each,  and  the  nnmber  of  shares  of  the  stock  of  said  bank  held 
by  each  of  them,  on  the  tirst  Monday  of  July,  1887,  and  that  the  same  is  a  true  copy 
ol  the  list  of  shareholders  on  file  in  said  bank  on  that  day. 

G.  W.  Marsh,  Cashier, 

Subscribed  and  sworn  to  before  me  this  thirtieth  day  of  July,  1887. 

[seal  of  notary.]  John  W.  Bakr, 

Notary  Public. 

[Indorsed :]  No.  2291.     Copy  of  list  of  shareholders  of  the  Keystone  Nafl  Bank,  of 


on  the  first  Monday  of  July.— (See  section  5210,  Revised  Statutes.) 
Ihe  oath  must  be  administered  by  an  officer  having  an  official  seal. 

3792 19 


'■•T  ■ 


■*.•< 


.  'A 


M' 


'^  '.i 


290 


INVESTIGATION   OF   NATIONAL   BANKS. 


If 


Copy  of  list  of  nanws  and  residenvea  of  shareholders  of  the  Keystone  National   Bank 
of  Fhiladelphia,  Pa.,  on  the  first  Monday  of  July,  1888. 


l^aroe. 


1 
2 
3 
4 
5 

7 

8 

9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 

38  I 

39  I 
40 

41  ! 

42  ! 
43! 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
61 
62 
63 
64 
65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 


Residence. 


Philada , 
do. 


.do 
.do 
.do 
.do 
.do 
.do 
.do 
.do 
.do 


Arthur,  Robt 

AlcoiTi.W.W 

Agnc  w,  Erwin « 

Barr.W.J 

Barnes,  C.  E - 

Bastinu,  Henry  S 

Bradley,  H.H 

Bradley,  W.B 

Brintzinjiliofler,  C 

Beatty.M.A 

Bender,  "W.  A 

Bums,  B.  C I do 

Brown,  Jno.  A.  S do 

Brown,  Georjie - do  .  - . 

Breneman,  B.  F j  Lancaster 

Brown,  Mrs.  R.  A.  Bro Philada. . . 

Brick,  Daniel ' do  . . . 

Blum,  Isaac I do  . . . 

Byrd,  John do  . . . 

Butler,  Mrs,  Mary  S } do  . . . 

Canning.  L do  .. . 

V./1   UXl]Xl>    JU-a   *J     ••    as*************************************-******!***    >*    'CIO      ■    •     ■ 

Crnmp.  Jno ! do  . . . 

Comcross,  Jno  L ' do  . .. 

Chapin,  Sarah  C ' do  . . . 

Cattell,W.C I do... 

Cooper,  Mrs. D.  C ! do  .. . 

Crump.  Geo.  R ' do  . .. 

Commonwealth  Title  Ins.  and  Tr.  Co do  . . . 

Cox,W.  K do... 

Chambers,  Airs.  Mary  J do  . . . 

Chapin,  G.W do... 

I)avi8, Mary  Ann do  ... 

Dreka,  L do  . . . 

Dillman,  J.  G do  . . . 

Dunham,  Jno.  Co do  . . . 

Downs,  A.  C j do  .. . 

Downs,  Emma [ do  . . . 

Excelsior  Div.,  Sons  of  T t do  . . . 

Evans,  AV I do  ... 

Elliot,  A.  G.  &  Co I do  ... 

Elliott,  R.M i do  ... 

Fields, Geo. F ; do  ... 

Freeman,  Henry  G.,  jr j do  . . . 

Frioka, Henry  A i do  ... 

( rlass,  M.  Ida I do  . . . 

Gabell,Geo.F.jr j do... 

Gaforth,  M.  A I do  ... 

(rraham,  S.  C do  ... 

Green,  Heni*v  W I do  . . . 

Gane,  W.  Walter i do  ... 


Gregson,  fJ  oseph . 

GrtK»ves,  Win 

Goble,  Brook  field. 


.do 
.do 
-do 


Goodrich,  E.T do 


Gibbs,  Almira 
Haines,  Granville  B  ... 

Harm  an,  Mr«.  J.  C 

Heraty,  E.  J-. 

Heraty,M.P 

Haines,  Franklin  I)  ... 

HoJ brook,  R.M 

Howard,  J  as.  "NV 

Hibbard,  Mrs.  Susan  Y 

Hopkins,  Edward 

Holbrook.  Jno.  O 

Hoopes.  D.  J 

HopKin8,  Mrs.  VV I do 

Hornicle,  Heniy  A t do  . . 

Johnson,  Henry i  Muncv,  1* 

Jackson,  J.  T I  Philada. . 

Kahlmus,  Est.  Jno ' do  .. 

Kahlmus,  Annie  L I do  . . 

Keen,  Chas.  J I do  . . 

Keen,  Chas.,  Ex • do  . . 

Kirst,  Henry j I do  . . 


do 

do 

do 

do    

do 

do 

do 

do 

West  Chester. 

Philada 

do 

do 


No.  of 
shares. 


Kerlin,  J.  N 
Logan  John  P 
Loury,  A.  A  . . 


.do 
.do 
.do 


31 
17 
50 
25 
31 
25 

6 

1 

6 
10 
12 
10 
10 
10 
125 
25 
20 
25 
10 
10 
15 

5 
11 
10 
12 
12 
30 

2 

100 

13 

15 

10 

9 
10 
50 
70 
10 
20 

5 
13 
10 
59 

3 
90 
12 
15 
11 

4 

1 

15 
40 
50 
25 
50 
38 
25 
10 
791 
40 
62 
42 
14 
12 
25 
36 

5 
15 
25 

6 

5 

125 

50 

40 

4 
10 
2 
30 
12 
25 
1 


INVESTIGATION   OF   NATIONAL   BANKS. 


291 


Copy  of  list  of  names  and  residences  of  shareholders,  e<c.— Contiuued. 


Name. 


81 

82 
83 
84 
85 
86 
87 
88 


90 

91 

92 

93 

94 

95 

96 

97 

98 

99 
100 
101 
102 
103 
104 
105 
106 
107 
108 
109 
110  j 
HI  1 
112  ! 
113 
114 
115 
116 
117 
118 
119 
120 
121 

122  ; 

123  .. 

124  ; 
125 

126 ; 

127 

128  1 

129  '■■ 

130  ! 
131 

132  j 

133  ; 

134  '■ 

135  i 

136  ! 

137  i 

138  i 

139  I 

140  i 
141 
142 
143 
144 
145 
146 
147 
148 
149 
150 
151 
152 
153 
154 
155 
156 
157 
158 
159 
160 
161 


Logan,  Jane  Hibbard 

TiOng.  Benj.  C  . . .  .* 

Long,  W.  V 

Lex,  W.E 

Leech,W.H.J 

Logan,  Mrs.  Mary  P 

Lucas,  Siun'l 

Lucas,  Jno.  C 

Luken.s.H.T { <]<> 

Melloek,J.M <|" 

McFadden,  Chas do 

McBui-ney,  David do 

MeBurnev,E.C do 

McCune-b do 

McArthur,D do 

McBride  Bros do 


Residence. 


West  Chester. 

Philada 

do 

do 

do 

do 

do 

do 


McCau8land,N do 

McClees,  Jas.  E.,  trustee do 

McGillian,Wm do 

Melliek,  Mrs.  E.  D do 

MeMullen,N 1 do 

Mc  Ardle.  James ' do 

Morgan,  James 1 do 

Marsh.  Mrs.  W.J do 

Maasey.T.  J do 

Murpliv,  W.  F.,  Sons ! do 

Meloney,G.  R j do 

Matthews,  C.  T : do 

Mackie,B.  T do 

Miller,  C.H ' do 

Miller,  J ! do 

Moore,  A.  M ' do 

Myers,  Ja<ob 1 do 

Murray,  Saml.  A do 

Nace  &,  Swarkley do 

Newton,  C.C do 

Nell,  L do 

Norton,  Chas.  D do 

Nicholas,  D.  P.  S do 

Nirdlinger,  S.  F do 

Nathans,  Horace  A do 

Nathans,  Marie  Louise do 

Omensetter.  S do 

Otto,  Jno.  O do 

Over,  David  A do 

Payne,  Geo.  F.,  Co do 

Penrose,  Emily do 

Perat.LS do 

Pepper,  Carrie  C ' do 

Pepper,  J.  W do 

Pennell,  W.  H.,  est ' do 

Portuondo,  J.  M.,  &  Co , do 

Paul,  HenrvS ' do 

Preston,  G  eo.  R do 

Peters,  C.K do 

Regar,  Newton  K : do 

Reed,  Jacob,  Sons ! do 

Reed,  Allen  H j do 

Reee,P i  do 

RichelA.C ! do 

Robinson,  Jno do 

Rogers,  Itobert ! do 

Sheller,  Sallie  Mary i do 


Sautter,  Christian do 

Steel,  Theo do 

Smith,  W.B do 

Shellenberger,  W.  N do 

Shellenberger,  E.  A do 

Shellenberger,  C.  N do 

Shirley.  George  W do 

Sower,  J.  R do 

Scarborough,  W.  A do 

Stokes,  Richard ,  est do 

Stang,  Peter do 

Stang,  Geo do 

Sharp,  Amelia do 

Ton,  Chas.  C do 

Torr,  AVm.  S do 

Tobiason.  Louis do 

Van  Biel,  Henry : do 

Weaver,  D | do 


No.  of 
shares. 


2 

19 

37 

2 

20 

100 

20 

1,823 

12 

20 

625 

20 

7 

5 

7 

5 

12 

15 

2 

5 

7 

4 

20 

4 

15 

150 

3 

25 

1 

62 

2 

30 

50 

19 

15 

10 

2 

25 

220 

50 

20 

5 

12 

20 

50 

20 

6 

6 

10 

12 

125 

4 

13 

100 

5 

11 

100 

25 

1 

7 

10 

5 

3 

37 

5 

10 

2 

12 

194 

12 

8 

12 

50 

50 

100 

7 

6 

25 

10 

213 

13 


^1 

i 


i 


f 


292  INVESTIGATION    OP    NATIONAL    BANKS. 

Coyy  of  list  of  names  and  residences  of  shareholders^  cfc— Continued. 


162 

163 
164 
165 
166 
167 
168 
1«9 
170 


Name. 


Warner,  Wm.  P.,  Co .... 
Warner,  Mrs.  Sallie  . . . . 

Wilpi8,  Stanton 

Wooilinan,  (ieo.  B 

Wheeler.  Mifflin 

Webb.  Mrs.  K.O.D 

Wbilldin  <fe  Sons,  L.M. 

Ware,Helbv 

yard,H.Hl 


Residence. 


do 

do 

do 

do 

do 

do 

do 

do 

Ocean  Beach. 


No.  of 
shares. 


125 
6 
10 
20 
15 
25 
40 
10 

225 


8,000 


State  of  Penna., 

County  of  Philada.,  S8 : 

^'  ?i  ^- Mai\sh,  cashier  of  the  Keystone  Nat'l  Bank,  being  duly  sworn,  deposes  and 
says  that  the  foregoing  is  a  full  and  correct  list  of  the  shareholders  of  said  bank 
With  the  residence  of  each,  and  the  number  of  shares  of  the  stock  of  said  bank  held 
by  each  of  them  on  the  first  Monday  of  July   1892,  and  that  the  same  is  a  true  copy 
Qt  the  list  of  shareholders  on  tile  in  said  bank  on  that  day. 

G.  W.  Marsh,  Cashier, 
Subscribed  and  sworn  to  before  me  this  31st  day  of  July,  1888 
[Official  seal  of  officer.]  John  W.  Bonner, 

Notary  Public. 

[Indorsed:]  No.  2291.  Copy  of  list  of  shareholders  of  the  Keystone  National 
f.'JJl  n/S  PJ"^»^.*^\P^'«>  Pa>  on  the  first  Monday  of  July,  1888.  Capital  of  bank, 
^SitV^.J  No-  o*  sliaros, ;  par  value  of  shares,  $50;  No.  of  shareholders,  170. 

Ihis  list  must  in(bcate  the  shareholders  as  they  appear  on  the  books  of  the  bank 
on  ih&  first  Monday  of  July.    (See  section  5210,  Revised  Statutes.) 

The  oath  must  be  administered  by  an  officer  having  an  official  seal. 


i'' 


INVESTIGATION   OP   NATIONAL   BANKS. 


293 


[Form  251.] 

Examiner's  report  of  the  condition  of  the  Keystone  National  Bank,  located  at  Philadelphia, 
VpJy**'  ^*^*^'^^y  *^f  ^fiiladelphiu,  State  of  Pennsylvania,  at  3  o'clock  p.  m.,  February  10, 

loot, 
John  C.  Lucas.  President. 


GroEON  W.  Mabsh,  Cathier. 


Kesources. 


1.  Kotos  and  bills  discounted 

2.  Overdrafts , 

3.  U.  S.  bonds  to  secure  circulation 

(3  per  leut) 

4.  U.  S.  bonds  to  secure  deposits 

5.  U.  S.  bonds  on  baud 

6.  Otber  stocks,   bonds,   and  mort- 

gagw 

7.  Due  from  app'd  reserve  agents, 

viz: 

Hanover  Nat  j  Bank, 

N.  Y $22,772.42 

Tradesmen's    Nat. 

Bank,  N.  Y 96,-384.36 


Dollars. 


1,282,104.49 
8,684.83 

50,000.00 


8. 


Due  from  other   national  banks 

(46) 

9.  Due  from  State  banks  and  bank- 
ers (J2) , 

10.  Banking  house 

11.  Other  real  e.state 

12.  Furniture  and  fixt'rs  ..  $10,000.00 

13.  Current  expenses 9, 709.66 

14.  Taxes  paid 

15.  Interest  paid 

Exchange 

17 


18 
19. 
20. 


Checks  and  other  cash  items 

Exch's  for  C.  H.,    includ'g  gold 

ch'ks 

Bills  of  other  national  banks 

Bills  of  State  banks 

Fraction'l  currency,  includ'g  nick- 
els   

21.  Specie,  viz: 

Fractional  silver. . .    $3,252.75 

Silver  dollars 6,937.00 

Silver  Tr'y  cert's. . .     8,429.00 

Gold  coin 6,639.00 

Gold  Tr'y  cert's 120.00 


119,156.78 
38,157.85 
14,585.92 

10,000.00 

9,709.66 

1,728.14 

762.97 

25,690.17 

5M.519.95 
6,545.00 

2,738.81 


Liabilities. 


1.  Capital  stock  paid  in 

2.  Surplus  fund 

3.  Discount $16,079.46 

4.  Exchange , 

5.  Interest 

6.  Premiums 

7.  Profit  and  loss '. . .      1,255.56 


Dollars. 


Bents  from  boxes 

8.  Circulation  received  . .  $45,000.00 
On   hand   and   re- 
turned  


9.  State-bank  circulation  outstand- 


ing. 


22.  Legal-tender  notes , 

23.  U.  S.  cert's  of  dep.  for  legal  tenders 
34.  5  p.  c.  reiVn  fund  with  Treas.U  S 
25.    Other  funds  with  Treas.  U.  S. : 

C.H.  gold  certs 

Trade  dollars 

Ca«h  short 


Total. 


25.377.75 
28,371.00 

2,250,00 

60,000.00 

31,960.00 

37.08 


10.  Dividends  unpaid , 

11.  Individual  deposits,  viz: 

Subject  to  check.  $1,101,464.41 
Demand  certifs..        24,141.13 


Time  certificates 
Certified  checks. 
Cashier's  checks . 


400,000.00 
80,000.00 


17,336.02 
55.00 


45,000.00 
617.50 


12.  United  States  deposits 

13.  Deposits  of  U.S.disbursing  officers 

14.  Due  to  national  banks  (6) 

15.  Due  to  State  banks  and  bankers 

(4) 

16.  Notes  and  bills  rediscounted 

17.  Bills  payable 


1,771,380.40 


Cash  over 
Total  ., 


1,125,605.54 


76,285.23 
26,482.11 


1,771,380.40 


Records  are  complete.     Bills  discounted  found  correct:  they  are  proved  quarterly 

,  Other  books:  2  individual  ledgers  (1,553  oper.)  balanced  monthly,  $403.46  short,  a 
recent  difterence.  ' 

President :  Manager  of  bank  owns  2,420  shares  of  stock.     Vice  Prest.  Granville  B 
Haines,  owns  791  shares  of  stock,  is  head  of  G.  B.  Haines  &  Co.,  dry  goods.  &c  ' 
doing  a  large  business.  .  ,      j  g       o,  o^^., 

Cashier:  Formerly  teller;  bred  to  the  business;  a  careful  and  laborious  officer. 
Directors:  10,  owning  4,311  shares  of  stock;  mainly  in  active  business.     Board 
meets  twice  each  week. 

Stockholders:  147.     All  have  certificates  of  stock.    Par  value  of  shares  $50-$58. 

Tnn^!*"'  "l'^  ''''.T.i^i?''^®  building,  opposite  U.  S.  Mint,  on  Chestnut,  corner  of 
Jumper;  rent  paid,  $8,000  «e<.  ' 

Safe:  Good  safe  and  vault,  with  boxes;  2  watchmen. 

Dividends  and  surplus  (section  5199  of  the  Revised  Statutes  of  the  U.  S.) :  Date  of 
last  dividend,  October  29,  1886.    Amount,  3  per  cent.    Carried  to  surplus,  $10,000. 


'k' 


.(;.,  . 


"I 


■^■1 


fi 


1 


2!U 


INVESTIGATION    OF   NATIONAL   BANKS. 


II 


fi 


LOANS  AND   DISCOUNTS. 

On  paper  with  two  or  more  individual  or  firm  names  (deni.  $37,178.71)..  $956, 178. 99 
On  8in«;le-namt'  i)aper  (one  person  or  lirui)  without  other  security  (deui. 

.$.58,000) 283,480.50 

On  niort j»;aftevS  and  other  real  estate  security 

On  U.  S.  bonds  payable  on  demand 850. 00 

On  other  stocks,  bonds,  &c.,  payable  on  demand  (or  trade  dolls.,  $198)..       13, 125.00 

On  time,  secured  by  collaterals 28,  470. 00 

Includcil  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204  of  the  Revised  Statutes  of  the 

II.S 

Other  suspended  and  overdue  paper 82,  744. 84 

Liabilities  of  directors  (individual  and  firm)  as  payers 64,  981. 53 

Loans  exeeding  the  limit  prescribed  by  section  5200  of  the  Revised 
Statutes  of  tlie  U.  S.,  viz: 

G.  B.  Haines  &  Co.  have  disc'ted  our  order 33, 124. 53 

And  by  other  parties  (some  on  clerks) 24, 497. 30 

57, 621. 83 

GENERAL  REMARK8. 

Overdrafts : 

Principal  item,  G.  B.  Haines  &  Co.,  dry  fr««<Is 4, 1^1. 97 

Bal.   firm  $11,000  .Jany  1,  1887,  at  time  of  purchase  by  them  of 

'' Cooper  &  Conard  "dry -goods  house — G.B.Haines  is  vice-prest. 

of  the  bank — will  be  made  good  in  a  few  days. 
Other  overdrafts  (22   c.  per),  small  loss,  if  any 4,  299. 86 

8,  <W4. 83 
Fast-due  paper : 

Due  from  1882  to  1887.  13  notes  with  attorney ;  may  lose,  say,  $1,500, 

eventually '. $12,  185. 41 

Due  1885.  .J.  H.  Haverly  indorsed  C.  M.  Southwell.    Prest.  believes 

this  to  be  good  eventually 1,  800.  00 

Due  1885.  Ely,  Hunsberger  &.  Ely,  in  assignment ;  good  for  i 1, 090. 98 

Due  1885.  G.  P.  Snuut,  in  suit ;  hopeful 529. 42 

Due  Feb.,  1886.  J.  C.  Dobbins  &  Co.,  in  assignment ;  good  for  i 3. 256. 63 

Due  Feb.  to  May,  1886.  5  notes,  Lewis  T.  Young  &  Co.;  failed;  in- 
dorsed John  Crawfonl ;  hopeful  for  latter 3,  914.  48 

Due  Feb.  1886.  Eltonhard ;  endorsed  Pfeffer ;  hopeful 1, 250. 00 

Due  1886,  Dec.  18.   Henrv  H.  Harrison,  with  60  shares  DuttV  Malt 

Whiskev  Co. ;  bal.  tirni,  1,500 ;  dift'.  hd. ;  hoi)efiil 1, 300. 00 

Due  1886, "^Dec.  Franklin  Brien ;  endorsed  J.  H.  Mapleson ;  hopeful. .  1,  370. 00 

Due  1886.  10  notes ;  probably  good 2,  322. 35 

Due  1887.  8  notes  ($2,000  pd^ during  examination) ;  good 5, 725. 57 

:il,  744. 84 

Balances  with  other  banks,  including  reserve  agents.  Have  been  verified  by  cor- 
respondence. 

Interest  not  paid  to  depositors  except  in  a  few  cases. 

Average  reserve  for  the  last  thirty  days  25-f-. 

Mem. — Of  discounted  paper  some  $85,000  re]>resents  sundry  notes  which  have  been 
continued  from  time  to  tinui  as  renewal  with  past  payments.  Interest  is  regularly 
and  fully  paid  on  all  of  them,  and  the  president  is  clear  in  his  opinion  that  all  are 
good,  although  it  would  be  ditticult  to  realize  at  once  upon  all  at  maturity. 

Mem. — Examination  of  this  bank  l»y  the  directors  has  been  sutt'ered  to  fall  into 
desuettule  the  past  year.  Periodical  and  thorough  examinations  by  the  bank  should 
be  required. 

Mem. — The  settlements  of  this  bank  with  the  clearing-house  often  make  it  a  large 
debtor,  and  ccunpels  it  often  to  api)ly  to  other  banks  for  assistan<e.  Some  of  the 
loans  should  be  called  in  and  less  money  kept  in  New  York. 

W.  P.  Drew, 

Examiner 

To  the  Comptroller  of  the  Currency, 

Washington,  D,  C, 


INVESTIGATION   OF   NATIONAL   BANKS. 


205 


[No.  of  bank,  2291.) 

Examiner^s  report  of  the  condition  of  "The  Keystone  National  Bank,^'  located  at  PhiJa- 
delphia,in  the  county  of  Philadelphia,  State  of  Pennsglvania,  at  S  o'clock  p.  m.,Sep' 
teniher  5,  1887. 

J  OHN  C.  Lucas,  President.  GroEON  W.  Marsh,  Cashier. 


Keaources. 


1. 
2. 
3. 
4. 

5. 

6. 

7. 

8. 

9. 
10. 
IL 
12. 
13. 
14. 

15. 
16. 


Notes  and  bills  discounted 

Demand  loans  with  collat'l  security 
Overdrafts  (92  aos.  probably  good) . 
U.  iS.  bond8  to  sei-ure  trircnlation* 

(3  per  cent). 

U.  S.  bonds  to  secure  deposits* 

U.  S.  bonds  on  hand* 

Other  stock  and  bonds 

Premiums  paid 

Minor  coins 

Cash  items 

Due  from  national  banks 

Due  from  State  banks  .ind  bankers 

Exchanges  for  cieariiiff-house 

Ciiecks  on  other  banks  in  same 

place 

Nat  ional  bank  notes 

Due  from  apit'dreserveagents.viz : 

Tradesmen's    Nat.  bank,  Now 
York $101,335.11. 

Hanover  Nat,  Bank, 
New  York 18, 923. 54 


Dollars. 


1,206,427.47 

73,325.00 

8,228.36 

50,000.00 


Liabilities. 


153.83 


1 .  Capital  stock  paid  in  (.$27,340  new) . 

2.  Surplus  fund 

3.  Other  undivided  profits,  viz: 

Discount .$18,245.95 

Exchange 195.61 

Interest 57.28 

Preujiums 

Rents ■ 

Profit  and  loss 2, 284.86 


60,729.96 

18,337.59 

230,454.27 

14,900.79 
1,923.00 


17. 


Reserve  fund  in  bank,  viz : 

Fractional  silver . . .  $1, 993.  .50 

Silver  dollars 1,  815. 00 

Silver  Tr'y  cert's  . .  13, 051. 00 

Gold  coin 5, 183 

Gold  Tr'y  cert's....        120 
Legal-t*'nder  notes.  26,999 

U.  S.  cert's  of  dep 

C.  H.  cert's  of  dep  . .  30.  000. 00 


120, 258. 65 


00 
00 
00 


4.  Due  to  national  banks 

5.  Due  to  State  banks  and  bankers. 

6.  Divi<lends  unpaid 

7.  Individual  depo-sits,  viz: 

Subject  to  check .  .$1, 124,9.50.92 


Demand  certifs. . .  16, 500. 00 

Time  certificates 

Cerl  iticate  chocks 

Cashier's  checks 


Dollars. 


427,340.00 
80,000,(»0 


20,783.70 

136,502.70 

15,485.26 

1,491.00 


8.  United  States  deposits 

9.  Deposits  of  U.  S.  disbursing  oflii- 

cers 

10.  Circulation  received..  45.000.00 
IjOhh  on  hand  and 
retn'd 


1,141,456.92 


18. 
19. 
20. 


21. 
22. 


5  p.  c.  red'n  fund  with  Treas.  U.  S . 

Other  funds  with  Treas.  U.  S 

Banking  house $ 

Furniture  and  fix- 
t'rs 10,000.00 


Other  real  estate  and  mortgages. . . 

Current  expenses 11, 693. 55 

Taxes  paid 225. 00 

Interest  paid 


Cash  short 


79, 161.  50 
2, 250. 00 


10, 000. 00 


11, 918. 55 


11.  State  bank  circulation  outstand- 


4'j,  000. 00 


Total !l,88S,008.97 


iiig 

12.  Notes  and  bills  rediscounttMl 

13.  Bills    payable    (7th    Nat.    Bank. 
Phila.) 

(C.  n.  due  bill,  with  $26,000  bills 
receivable  as  collateral :  j>aid 
during  examination.) 


Cash  over  (to-day) 
Total 


20,  00:).  DO 


9.39 


1,888,068.97 


^'Designate  what  F.  S.  bonds  are  held  in  each  case. 

[Note. — Examiners  are  requested  to  report  below  whether  the  records  are  fully 
and  explicitly  kept,  and,  it  not,  Avhether  proper  corrections  and  additions  have 
been  made  during  examination ;  whether  the  books  are  correctly  kept,  and  how  often 
accounts  are  balanced;  which  officer  is  in  charge,  and  if  the  others  are  active  or  in- 
active ;  their  reputation,  salaries  paid,  and  bonds  required  of  them ;  whether  the 
officers  are  trained  bankers,  and  if  they  are  engaged  in  business  outside  of  the  l>auk; 
whether  the  directors  meet  regularly  as  a  board,  and  how  often ;  the  number  of  shares 
owned  by  each ;  whether  they  have  active  discount  and  examining  committees,  or 
leave  management  entirely  to  the  officers ;  the  number  and  classes  of  stocklndders, 
and  whether  annual  meeting  was  regular;  whether  the  office,  vault,  and  safe  are 
secure,  and  if  used  in  any  other  business  than  that  of  this  bank,  whether  its  business 
is  kept  entirely  distinct  and  separate.] 

Records:  Complete.     Bills  discounted  are  ]>assed  monthly.     They  are  $1.39  over. 

Other  books:  Very  well  kept.  3  individual  ledgers  (1,687  ace.)  balanced  monthly. 
Their  dift'erence  August  15,  ult.,  $227.37  short.  Over  difference  close  of  Sept.  6,  inst., 
$1,367.22  over,  which  will  be  looked  up. 

President:  Manager  of  the  bank,  owns  2,175  shares  of  stock;  salary,  $5,tX)0;  no 
bond;  owns  much  real  estate  in  Philadelphia,  and  at  Spring  Lake  and  Sea  Girt, 
N,  J.;  member  of  "Lucas  &  Bro.,"  wholesale  grocers,  Philadelphia. 

Vice-president:  Granville  B.  Haines,  head  of  Granville  B.  Haines  &  Co.,  a  large 
retail  dry-goods  house;  owns  791  shares  of  stock. 

Cashier:  A  trained  officer;  owns  no  stock;  salary,  $2,400;  bond,  $10,0(X).     Takea 


•  ^1 

i 


m 


li 


ly 


Ii       1 


li  - 


m  ' 


296  INVESTIGATION   OF    NATIONAL    BANKS. 

tliir'iml\lct'il!s*'^^^"^^^  '*^  ^^'"^  bank,  althoui;li  familiar  with  all  Irausac- 

$1oSk)^**"^  t^ashier:  John  Hayes,  jr. ;  acts  as  paying  teller;  salary,  $1,500;   bond, 


DIVIDENDS  AND  SUKPLUS  (SECTIONS  5199  AND  5204,  U.  S.  REVISED  STATUTES). 

Date  of  last  dividend.  May  3, 1887.     Amount,  $ ,  3  per  ct.    Carried  to  profit  and 

loss,  Jploo.  lo. 

vahle"^^^^  ^"*^*^  ^^^^  examination:  Losses, $229.66;  premium, $ ;  decrease  of 

LOANS  AND  DISCOUNTS. 

^'  "^'ISo^^JS^l^ll  *^'^  ^^^  *"^^^  individual  or  firm  names  (on  demand, 

«Poo,D00.5o) djoi  1    nnn   QiT 

B.  Single-name  paper  (one  person,  company,  iimi,  or  members  of  a  coiii-  ' 

pauy  or  firm)  (on  demand,  $6,000),  without  other  security 247  870  29 

C.  Loans  and  discounts  secured  by  real-estate  mortgages  or  liens  upon  ' 

real  estate ^  ^ 

D.  Demand  loans  secured  by  other  collaterals . ...!!..!'[. 46  89621 

E.  Time  loans  secured  by  other  col  laterals !..!!.'.!]'."!!        73'  325!  00 

Total  notes  and  bills  discounted \  279  752. 47 

Included  in  the  above  are —  " 

F.  Bad  debts,  as  'defined  in  section  5204  of  the  Kevised  Statutes ....        $3. 035. 42 

Kj.  Other  suspended  and  overdue  paper 24  016  60 

^'  ^Jii^^Jl*^^®  of  directors  (individual  and  firm)  as  payers"  (firm, 

$62,o24.53) 104,824.53 

LOANS  EXCEEDING  THE  LIMIT  PRESCHIBED  BY  SECTION  5200,  U.  S.  REVISED  STATUTES. 

Granville  B.  Haines  &  Co.  (see  above)  have  direct  own  order..  33  124  53 

And  au  endorsement  of  H.  P.  Lemaistre  (formerly  of  the  firm  and  "re"-  '       * 

81)01181  ble),  6  notes 24  479  30 

57, 603. 83 

(Although  on  these  notes  the  uamo  of  the  firm  does  not  appear,  there  is  evidence 
that  they  are  tor  %  ol  the  firm.) 


a  military  camping  ground  at  Sea  (iirt,  for  $72,000,  by  the  president  of  the  bank, 
will  probably  pay  most  of  these  notes,  if  not  all. 

1.  To  order  of  '' Samuel  Lucas,  treasurer  Spring  Lake  Land  and  Improvement  Co." 

w  S- 5'"  •  T' *^  ^^ $10,000 

H<^««»«* 4^862 

2.  To  order  *'  Lucas  &  Bro."  '^^^'  ^^ 

jr.lLSweeney 5  g20 

K.  W.  Cromio 4'  gg2 

A.  S.  Lauer '.'.'.'. 3'  iwi 

3.  To  order  '' Edward  Irwin,  treasurer  Sea  GirrLkiui'aiidlVn'pVco!" 

James  Wilson ^  y3Q 

H.c.Brownaii ^•^^:^:::::::::::::::::::::,  ^m 

Y .  H.  Smith 3'  ygQ 

J.  H.  Goodwin '[[' ►'  ^^^ 

J.  H.  Weldon !!!!!!!!! 4^860 

'- 23,758 

$526,  8:^3 
Edward  Irvin  is  a  clerk  of  "  Lucas  &  Bro.,"  as  also  are  some  of  the  other  names  on 
the  notes,  at  least  such  is  my  impression.     Irwin  is  undei-stood  to  be  a  man  who  in 
nnaucially  responsible. 


W.A 


INVESTIGATION   OF   NATIONAL    BANKS. 


207 


Mem. — The  following  notes  represent  balances  of  not«'S,  many  of  which  were  in  the 
bank,  under  a  previous  management,  and  some  when  a  nat'l  bank.  The  interest  is 
rc^gularly  paid  every  six  montbs,  and  they  are  accounted  good. 

J.  C.  Lucas,  trustee,  balance  from  $30,000;  difference  paid,  $14,280,  city 

liens  as  collateral $13,850.00 

John  O.  Rourke,  order  M.  O'Rburke,  contractor,  bal.  from  $18,000,  dift*. 

pd 16,410.17 

Chalks  I^iwrence,  trustee.  Amies  Publishing  Co.,  failed,  balance  Irom 

$20,000,  difference  paid,  secured  by  books,  plates,  &c 8, 445.  76 

William  Armstrong  (formerly  pres't  of  bank  and  a  contractor). 

Order  J.  C.  Lucas,  pres't $8, 136. 00 

Order  Lucas  &  Bro 5,860.50 

13,996.50 

Sainl.  B.  Griffith,  order  J.  C.  Lucas,  trustee  ac 7, 278. 00 

Chas.  E.  Blumner  &  Co.,  order  J.  C.  Lucas,  pres't 2,  929. 05 

W.  H.  Butler  (lithographer  and  publisher),  failed,  going  on  order  W.  H. 

Butler,  trustee 10  901. 84 

The  Combination  Trust  Co.  by  M.  H.  Alberger,  pres't,  with  700  shares 

Combined  Iron  and  Steel  Co.  (no  quotation) 10,000.00 

83, 511. 32 

W    P    Drfw   ExoniinfiT 
To  the  Comptroller  op  the  Currency,  Washington,  D.  C. 

Mem. — There  has  been  but  little  improvement  in  settlements  with  clearing-house 
on  the  condition  mentioned  in  last  report.  To-day,  and  for  the  last  few  days,  the 
bank  has,  however,  settled  creditor. 


[Note.— Under  the  head  of  General  Remarks,  the  examiner  should  mention  the 
(haracter  of  collaterals  held,  and  give  a  clear  description  of  the  loans  and  discounts, 
overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses,  bills  payable, 
or  other  accommodations  sought  by  the  bank,  and  the  necessity  therefor.  He  should 
schedule  all  loans  obtained  by  any  corporation,  company,  or  firm,  through  its  stock- 
Imlders,  members,  officers,  or  employes,  for  the  benefit  aiid  use  of  such  company,  cor- 
jxuation,  or  firm,  as  may  appear  from  the  credits  such  account  has  received,  and 
should  describe  the  manner  and  means  by  which  such  accommodations  were  obtained.] 

GENERAL  REMARKS. 

Bad  debts : 

Due  1885.  Smart,  order  Fullerton ;  hopeful  for  most 

Due  1886.  March  24,  Wallace,  order  Dobbins  «fe  Co. ;  hopeful 

Due  1886.  March  to  May,  3  notes,  Bartleson ;  good  for  | 

Due  1886.  April  23,  Brotherhead,  order  Shill ;  doubtful 

Due  1886.  Sept.  20,  Culbertson,  order  Lex ;  doubtful 

Due  1886.  Dec.  2,  Bien,  indorsed  Mapleson ;  hopeful  for  most 


$529. 42 

295.00 

466.00 

50.00 

325. 00 

1,  370. 00 


Other  past-due  paper :  = 

Due  1882.  Apl.  26,  O.  D.  Buffum,  with  atty. ;  good  for  \  eventually  .. 
Due  1884.  Apl.  to  June,  2  notes,  K.  McBurney  &,  Sons,  failed;  in  suit; 

hoj)eful  for  \ 

Due  1884.  June  to  Dec,  Whiteside,  $400;  Schroyer,  $154.86;  cKde' 

$2,000;  Milanow,$400;  Gould  &  Co., $136 ;  all  in  suit;  hopeful... 
Due  1885.  Oct.  27,  Amies  Publishing  Co. ;  failed;  in  suit;  hopeful.. 
Due  1885.  Apl.  to  June,  Ely,  Hamburger.  &  Ely;  failed;    in  suit; 

good  for,  say,  \ *. "1 ., 

Due  1886.  Feb.  to  May,  6  notes,  Lewis  T.  Young  &  "co. ;  failed;  in 

suit;  doubtful 

Due  1886.  March,  8  notes,  W.  B.  Metis  &  others;   failed;  in  suit; 

goodfor^ '  ' 

Due  1886.  Aug.  16,  Tobin ;  good 

Due  1886.  May  15,  The  Wm.  Wilson  Silversmith  Co.,  order  Giles,  Bro. 

&.  Co. ;  ho]»eful ;  firm  indorsed 

Due  1886.  May  18,  McNichols,  order  McGlue,  with  atty. ;  good!...". 
Due  1886.  Oct.  11,  J.  Lippincott,  order  J.  C.  Lippincott;  failed;  75 

per  cent  is  ofiered 

I^ue  1886.  Dec.  18.  H.  H.  Harrison,    Avith  $3,000  stock"  Di'iftV  'iU\\t 

Whisky  Co. ;  failed ;  with  atty. ;  hopeful  for  most ". 

Due  1887.  12  notes,  recent ;  good  within,  say,  $600 


3,  035. 42 

1,000.00 

1,500.00 

3, 090. 86 
432. 57 

1,090.98 

3, 914. 58 

3, 316. 53 
277.35 

2,619.73 
42.25 

3,000.00 

1,  300. 00 
2, 431. 75 

24,016.60 


'A 


■I! 


% 


i. 


29a 


INVESTIGATION   OF   NATIONAL   BANKS. 


Mem. — The  luanageiiiciit  Hjiy  that  h»aii8  «ii  tlie  above  lists  will  )»«>  cliarj;c<l  oil'  when 
<leiinitely  ascertained.  Meanwhile  a  suggestion  from  the  comptroller  to  reduce  before 
next  dividend  is  respectfully  advised. 

lialanveH  with  with  other  banks,  including  reserve  agents,  have  been  verified  by 
c«)m'S)>ondence.  2<o  interest  is  paid  on  deposits  (and  sparingly  to  banks)  t  xc^i^t  3 
Iter  cent  on  §113,000,  cts.  of  deposit.     Average  reserre  for  the  last  thirty  days,  25^  per 

vi'ni. 

mih  pai/able:  To  Seventh  Nat.  Bank,  Philada.,  on  C.-H.  due  bill,  with  bills  receiv- 
able ($2(),()()())  as  collateral,  j>flu?  during  this  examination,  $20,000. 

Mkm. — This  bank  coutinnes  to  act,  under  authority  of  councils,  as  the  deposit<iry 
of  the  city  treasurer.  Its  balance  to-day  in  that  account  is  '$4.1(i,fKH),  which  is  about 
$5,(100  mme  than  a  daily  average.  It  is' the  examiner's  opinion  that  this  account  is 
of  disadvantage  to  the  bank,  as  it  necessarily  contributes,  more  than  anything  else, 
to  throw  the  bank  largely  in  debt  with  the  clearing  house,  compelling  resort  to 
borrow  ing  too  frequently  for  settlement. 

Please  see  supplementary  sheet. 

W.  P.  Drew,  Examiner. 

To  the  C<)mi»tji()lli:r  of  thk  Currjincy, 

Washington,  D.  C. 

Mkm. — Measures  are  promised  forthwith  to  replace  the  3  per  cent  called  V.  S.  bonds 
with  others  bearing  interest. 


Exaniiner^s  report  of  the  condition  of  the  Kegntone  Xational  Bank,  located  at  Philadelphia, 
in  the  conntg  of  Philadelphia,  State  of  rennxglrania,  at  8  o'elovk  p.  m.,  Fehrnarg  I'tlh, 


ISSS. 
John  C  Lucas,  Prenident. 


GmEON  W.  Marsh,  Cashier. 


Ee«ource8. 


!' 

1 

2 

3 

4 

1 
1 

5 

■1 

6 

, 

7 

',% 

8 

1 

9 

1 

10 

1 

11 

1- 
1 

12 

I 

13 

14 

15 

10 

Bollard. 


Liabilities. 


Notes  and  bills  diHeomiteU 1,181,783.57 

Ben'iUMl  loans, witli  collat'l  secwrity     5fi,  080. 85 

Overdrafts 9, 177  98 

IT.  S.  lM»nd8,  to  seeiire  circulation  i 

(4J) I   r>o,ooo.oo 

U.  S.  bonds,  to  secure  deposits  •  . .  j 

U.  S.  bonds  on  band" \ 

Other  stocks  and  bonds I 

Premiums  pai<l j      3, 999. 32  ' 

IJiicurn'nt  and  minor  coins |  4,')6. 64  1 

Cash  items  (advances) i  33. 00  , 

Due  from  national  banks  (34) |    45, 167.  tiS 

Due  from  State  banks  and  bankers 

(11) 

Exchanges  for  clearing  house 

Checks  on  other  banks  in  same 

jdace  

National  bank  notes 

Due  from  app'dreser  ve  agents,  viz : 
Hanover     Nafl 

Bank,  New  York      !j!81,950.73 
Tradesmen's   Nat'l 
Bk,  New  York  ..        94,753.81 


2. 
3. 


Capital     stock    paid    in    (new, 

Surplus  fund 

Other  undivided  profit.s.  viz: 

Discount $13, 744. 11 

Kxcliange 

Interest 383.41 

Premiums 

Protit  and  loss  ...       7, 378. 92 


Dollars. 


423,  940. 00 
80, 000.  «K) 


9,101.47 
230, 047. 42 

16,161.12 
6, 825. 00 


0. 


Rents  from  lioxes 

Due  to  national  banks  (12) 

Due  to  State  banks  and  I)ankers 

Dividends  unpaid 


-!      21,  506. 44 

44.00 

•      94,885.51 

.1       15.705.94 
889.00 


17. 


Reserve  fund  in  bank,  viz : 

Fractional  silver  . .  1.440.75 

Silver  dollars 

Silver  Tr'y  Certs  . . 

Gold  coin 

CJold    or    Treasury 

Certs. 

Legal  tender  notes. 
U.  S.  Certs,  of  Dep 
C.  H.  Certs,  of  Dep.      170,000.00 


.',962.00 
19.426.00 
11,342.50 

1,570.00 
27,092.00 


176,  704.  54 


233,  833. 25 


Individual  deposits,  viz: 

Subject  tocheck. $1,330,225.87 
Demand  certif  s .        34,058.75 

Time  eertiticates 

Certified  checks 

Cashier's  checks 


8. 
9. 

10. 

11. 
12. 
13. 


United  States  deposits 

Deposits  of  U.  S.  disbursing  oflB- 

cere 

Circtlation  received.        45,000.00 
Less  on  hand  and  retirt?d  . . . 

State  bsujk  cir'n  outstanding 

N<»tes  and  Idlls  rediscounted 

Bills  payable 


1, 364, 284. 62 


45,000. 


18. 

19. 
20. 

21. 
22. 


5-p.  c.  red'n  fund  with  Treas.  U 

S  ■      2,250.00 

Other  funds  with  Treas.  U.  S \      2, 040. 00 

Banking-house,  fumi- 

tnre  and  fixt's 10,000.00       10, 000. 00 

Other  real  estate  and  mortgages  . . ' 

Current  expon.ses $8,910.08  ' 

Interest  paid 3,290.75 

Exchange 193.22  1 


Cash  short 


12, 394. 05 
199.95 


i: 


Total 2,046,255.51  || 

I  II 


Cash  over . 
Total.... 


2, 046, 255. 51 


*  Designate  what  U.  S.  bonds  are  held  in  each  case. 


INVKHiTIGATION    OP   NATIONAL   BANKS.  209 

* 

INoTK.— Kxaniiucrs  arc  requested  to  report  below  whether  the  rtcimls  are  fully 
and  explicitly  kei»t,  and,  if  not,  whether  i^oper  corrections  and  additions  have  been 
made  during  examination;  whether  the  books  are  correctly  kept,  and  how  otteu 
.u-counts  are  balanced;  which  officer  is  in  charge,  and  if  the  others  are  active  or  in- 
jutive;  their  reputations,  salaries  paid,  and  bonds  required  of  them;  whetlier  the 
officers  are  trained  bankers,  and  if  they  are  engaged  in  business  outside  ot  the  bank; 
whether  tlie  directc.rs  meet  regularly  as  a  board,  and  how  often ;  the  number  ot  shares 
owned  by  each;  whether  the v  have  active  discount  and  examining  committees,  or 
b'ave  management  entirely  to  the  officers;  the  number  and  classes  of  stockholders, 
and  whether  annual  meeting  w^as  regular;  whether  the  office,  vault,  and  safe  are 
secure,  and  if  used  m  any  other  business  than  that  of  this  bank ;  whether  its  business 
is  kept  entirely  distinct  and  separate.] 

Records :  Are  com]dete.     Bills  discounted  are  correct.     They  are  proved  quarterly. 

Other  books:  Well  kept;  3  individual  ledgers  (1,510  aces.),  balanced  monthly; 
$2,134.72  short,  a  recent  ditference.  The  stock  ledger  and  certificate  book  ditter  by 
20  sliares  of  stock.  ,     .   ^        .   j  •  i 

President:  Manager  of  bank;  owns  2,175  shares  of  stock,  largely  interested  m  real 
estate  in  Philadelphia,  and  at  Spring  Lake  and  Sea  Girt,  N.  J. ;  an  energetic,  active 
officer;  salary,  $4,000;  no  bond.  ^         ,     ,       ,    ^i  , 

Vice-president:  Granville  B.  Haines;  owns  791  shares  ol  stock;  head  of  large  dry 
goods  firm  (Granville  B.  Haines  &  Co.),  which  has  excellent  credit;  takes  small 
part  in  management  of  bank;  an  able  and  successful  man. 

Cashier:  Formerly  paying  teller  3rd  Natl.  Bank;  a  faithful  officer,  sharing  but 
sli«Hitly  in  manageinent  of  bank;  owns  no  stock;  salary,  $2,500;  bond,  $20,000. 

Assistant  cashier:  John  Hayes,  jr.,  formerly  receiving  teller  3d  Nat.  Bank;  aneasy- 
iroing  officer;  owns  no  stock ;  salary,  $1,800;  bond,  $15,000. 

Direct(»rs :  Eleven,  owning  4,254  shares  of  stock.  Charles  McFaddeu,  a  millionaire 
railroad  contractor,  owns  500  shares.  Board  meets  twice  each  week;  make,  by  com- 
mittee, semiannual  examination  of  assets. 

8tockh(dders:  141;  all  have  certificate  of  stock;  par  value  of  shares,  $j>0;  sell,  foa. 

Office,  vault,  and  saf«*:  Good,  tenquuary  quarters  on  Chestnut  st.,  near  U.  8.  Mint; 
rent  paid,  $6,000;  rents  received  from  boxes,  $:300. 

DIVIDENDS   AND   SURPLUS    (SECTIONS   5199    .\ND   .5204,  U.  S.  REVISED    STATUTES). 

Date  of  last  dividend,  November  1,  1887.     Amount,  $ ,  3  per  cent.     Carried  to 

profit  and  loss,  $6,121.06.  ^  ,  „ 

Charged  oft'  since  last  examination:  Losses,  $ ;  premiums,  $ ;  decrease  ot 

values,  $ . 

LOANS  AND   DISCOUNTS. 

A.  Paper  with  two  or  more  individual  or  firm  names $875, 946.  20 

B.  Single-name  paper  (one  person,  company,  firm,  or  members  of  a  com- 

pany or  firm ),  without  other  security 290, 799.  37 

C.  Loans  and  jliscounts  secured  by  real-estate  nuutgages  or  liens  upon 

other  real  estate -. 

I).  Demand  loans  secured    l»v  other  collaterals  (<m  ])ersonal  security, 

$19,743.05) ^'noSm 

E.  Time  loans  secured  by  other  collateral  (on  nine  $3,000) 1j>,  038. 00 

Total  notes  and  bills  discounted 1, 237, 864. 42 

Included  in  the  above  are —  ^  -,ru\  o« 

Y.  Bad  debts,' as  defined  in  section  5204  of  the  Revised  Statutes  ..  2, 100.85 

G.  Other  suspended  and  overdue  paper 52, 835. 60 

H.  Liabilities  of  directors  (individual  and  firm),  as  payers  (firm, 

$105,134.83) 149,634.83 

LOANS  EXCEEDING  THE  LIMIT  PRESCRIBED  BY  SECTION  5200,  U.  S.  REVISED  STATUTES. 

Granville  B.  Haines  &  Co. :  Direct;  7  notes,  own  order  ....  $33, 124.53 

By  <»therH  (see  sujiplementary  sheet) 19,  749. 30 

— $^2,  873. 83 

Lucas  &  Bro. :  Direct ;  7  notes,  own  order 31,  896. 00 

By  others  (see  supplementary  sheet) 20, 365. 00  „  ar»i  aa 

^— ^— — ^—        52.  261. 00 


i 


.•I 


■ 


t 


llil 


r' 


300  INVESTIGATION    OF   NATIONAL    BANKS. 

Mkm.— Tlio  iiulireet  iiidobUdiioHs  (in  form)  c<nisi«t8  in  Hundry  not<'8,  which  have 
been  previonsly  reported,  by  persons  (stated  to  be  themselves  responsible  as  to  per- 
TJ^:.  iD'  but  connected  in  some  capacity,  as  clerks,  etc.,  with  the  respective 
hrms ;  on  these  notes  the  names  of  the  tirms  do  not  appear. 

Supplementary  sheet  to  report  of  Feb.  15,  1888,  as  Keystone  National  Bank,  PhUadeU 

phia,  Pa. 

Orerdrafts.-Of  these,  $2,iiS.60  represent  old  petty  debit  balances,  more  than  off- 
set  by  sundry  petty  credit  balances  of  long  standing.  Of  the  remainder,  $2,910.42 
L  t  c^  1  *^%^^;;*^^t«^:  i-^'  I>itn«a^  (niade  Feb.  20,  during  this  examination),  no 
doubt  good ;  of  the  rest,  they  are  probably  good  with  slight  exceptions. 

Large  loans  and  discounts: 

John  Wanamaker,  own  order,  4  notes $40  000  00 

^•H.  Mayer,  order  Philadelphia  Smelting  Works,  6  note's".'".'. !!'.'.'.*.     22' 352*  80 

T    wlt:r  iV?*^}"T**'*'"^*'''*'^*^^^"^^""^P 20!  000;  00 

li.  VV.  Maltby  &  Co.,  own  order,  6  notes 27  000  00 

W .  H.  Butler,  order  W.  H.  Butler,  agent ;  4  notes ."!!.'.*.".".*.*.'!""  19  400"  00 

The  Combination  Trust  Co.,  with  700  shares  ($35,000)  stock  of  the        '       ' 
Co.  as  collateral  m  the  bank  some  years,  interest  fully  paid  on  re- 

newals.     I  he  president  says  it  will  be  paid  in  full  eventuallv  . .  10  000  00 

Demand  note,  Jauuarv  19th,  1882.     William  Armstrong  (formerly  city        ' 
contractor  and  president  of  this  bank),  ordet  of  John  C.  Lucas,  presi- 

dent ;  interest  paid  reqularly.  President  says  it  is  good  eventuallv .  8  136  00 

Demand  note,  January  30th,  1882.     S.  B.  Griffith,  o?der  of  John  C 

Lucas,  trustee  acct. ;  int.  pd.  regularly ;  pres't  says  good 7, 278. 00 

154,166.80 

r^.^r^^'f  ''i^^'''  ^^^''^  ^'^^  of  undoubted  strength,  and  I  do  not  know  of  any  good 
reason  lor  discrediting  any  of  them,  even  those  of  ^'long  continuance,"  except  the 
Conibmation  Trust  Co.  ($10,000),  which  I  regard  as  doubtful.  '         ^ 

MEM.— 1  he  loans  mentioned  under  *'  Loans  in  excess  of  legal  limit  "  are  virtually 
so  tar  as  I  am  able  to  learn,  being  for  ac.  respectively  of  ''Granville  B.  Haines  & 
h^  II  Lucas  &  Bro.  "  though  not  bearing  these  names,  are  as  follow^j,  they  hav- 
mg  been  long  in  the  bank,  interest  being  fully  paid  on  renewal  of  the  same: 

Order  of  Henry  F.  Lemaistre,  for  Granville  B.  Haines  &  Co. : 

Due  March  4,  1888,  Charles  Harrison «i«8nnnn 

Due  -  7,  -  T.  c.  Morris  &  Co ::;:;;:; 297930 

DueApL     6,      ^'    Sam'l  Batten n'ooom 

Due     "        7,      "    George  Hillisan sSS'no 

DueMay     2,      ''    M.  Potter  &  Bros ll'.\l[[[[]][ll]]     tjmOO 

Order  of  Edward  Irwin,  for  Lucas  &  Bro. :  ^^'  ^^^'  ^ 

DueAp'l  22,  1888,  R.  W.  Cramie  «m  99^;  m 

Due  do.     ♦'     "                *'                                     V^fm 

DueM'ch31,  "                "                 l'«Q?m 

DueFeb.  16,"    J.  H.Wilson  &  Co  !  l!!!  *.'.!; q'Tfiom 

DueFeb.  20,   "    James  Black '.'.^'.IV.]]V.[[\'.['.[[[[  4  860;00 

20, 365. 00 

^  J*?mwT^^vM**''*  ^^'J^'^'vlI'loA/'*''*'  ^y  Morris  &  Co.  ($2,979.30),  Potter  &  Bro. 

iftd^^/^ri   ?^'*T.^,^"'i^^i^^^^^  "«*  ^«  "'^^1«  to  stricture,  but  the 

others  are  believed  to  be  wholly  for  the  account  of  the  firms  nameil;  Lucas  &  Bro 
are  a  wholesale  grocery  house  in  Philadelphia,  rated  at  $75,000,  and  doing  a  large 
business     Samuel  Lucas,  elder  brother  of  tlie  president  (who  has  an  interest  in  the 

m'^'J"*    'im  "'^""^\"S  ^"^"'V^I'  ^n*l  a  director  in  this  bank,  owning  20  shares  of  stock. 

MkM.— Iho  ijresident  of  this  bank  is  erecting  a  large  and  elegant  banking-house, 
cor.  Juniper  and  Chestnut  st.  with  offices,  etc*,  complete,  and  a^  room  for  this  bank 
when  completed,  probably  in  July  next. 

Mem.— This  bank  continues  as  the  authorized  depository  of  the  city  treasurer.  To 
befn^^^  04^  07  'Vr-  *""^Y  ''.  $365,923.55,  the  receipt^  (cash  and  checks)  to-day 
of  tbe'^tv  treasurf^^^  piesident  and  vice-president  of  this  bank  are  the  bondsmen 

MEM-^rie  ''settlements"  with  the  clearinghouse  have  lately  been  much  more 
favorable  than  at  time  ot  my  last  report,  but  I  have  a  suspicion  that  in  some  few 
instances  the  ''credits"  shown  were  largely  made  up  of  duchills   of  other  banks 

?«  l"*'^!  •"""^,*^^'^^y.V/^-''*^^'**"«*'  "^  *'"«^;  ^^'l^i^'l*  ^^as  a  part  of  the  reserve  of  the 
bank.    This  probably  will  not  recur.  .  v^uivuo 


INVESTIGATION   OF   NATIONAL   BANKS. 


N^ 


301 


Mem.— The  amt.  in  "Interest  ac."  (paid),  as  shown  in  this  report,  largely  con- 
sists of  interest  paid  to  banks  for  loans ;  sometimes  for  a  period,  as  pledge  of  bills 
discounted ;  sometimes  for  duebills  for  a  day.  This  bank  has  been,  in  its  manage- 
ment, particularly  as  to  its  daily  "  settlements,"  the  subject  of  some  criticism,  not  to 
say  anxiety,  on  the  part  of  the  C.  H.  committee,  and  I  am  convinced  that  its  habit- 
ual settlements,  heretofore  in  debt  to  the  C.  House,  has  injured  its  reputation  among 
its  associates.  The  bank  has  had  a  hard,  "  up-hill"  experience  ever  since  it  was  char- 
tered, but  I  think  it  has  seen  its  worst  days. 

Mem.— The  president  of  this  bank  is  largely  interested  in  real-estate  operations, 
and  by  his  friends  is  regarded  as  having  made  a  fortune  within  the  last  few  years; 
others  again,  perhaps  through  prejudice  or  spite,  express  doubts  as  to  whether,  less 
all  incumbrances,  he  is  worth  much.  He  is  obviously  a  very  candid,  honest,  and  lib- 
eral man,  and  also  full  of  energy  and  enthusiasm.  He  is  conducting  several  large 
enterprises,  and  expresses  the  hrmest  conviction  of  entire  success.  He  lives  gener- 
ously but  modestly,  and  is  liberal  in  assistance  to  worthy  objects. 

W.  P.  Drew, 

^     ,  Kat.  Bank  Examiner. 

To  the  Comptroller  of  the  Currency, 

Washington,  D.  C. 


[Note.— Under  the  head  of  General  Remarks  the  examiner  should  mention  the  char- 
act/cr  of  collaterals  held  and  give  a  clear  description  of  the  loans  and  discounts,  over- 
drafts, stocks  and  bonds,  other  real  estate,  cash  items,  expenses,  bills  payable  or 
other  accommodations  sought  by  the  bank,  and  the  necessity  therefor.  He  should 
schedule  all  loans  obtained  by  any  corporation,  company,  or  firm,  through  its  stock- 
holders, members,  officers,  or  employes,  for  the  benefit  and  use  of  such  company,  cor- 
poration, or  firm,  as  may  appear  from  the  credits  such  account  has  received,  and 
should  describe  the  manner  and  means  by  which  such  accommodations  were  ob- 
tained.] 

general  remarks. 

Bad  debts  due  from  1884-'6,  5  notes,  hopeful  but  slow,  $2,100.85. 
Other  past-due  paper: 

*  Due  1883.  William  Hasse . .  $1,  624. 18  S  ^^il^^  ^^  "Jr^^  Keystone 

D.H.Johnston 4,808.91)     Vinegar  Works,"  m  suit, 

'  (     hopeful  for  most 

*  Du6  1885.  Wash  Fitler ....        420. 50  f  ^';?^^,,*^^  !,'  ^^]  J '  ^"»»^^«g«i' 

John  Murphy 467. 31  i      f  ^^^J 5 ^J^l •  ^I^^^? \^^^' 

W.  H.  Haslet 203. 17  I      ?T  F'^  ^^^'  P^^''  ^^P*^' 

t     but  slow 

*  Due  1886.  "  Haulenbeck,"  order  "  Balfour,"  i  offered,  declined 

*  Due  1886.  "Eltonhead,"  order  "Pfeffer,"  $500;  pd.,  not  credii 

hopeful 

*  Due  1886.  ''  Franklin  Bien,"  endorsed  "  J.  H.  Mapleson."'  *  Bie'n  says 
_  he  will  pay  when  he  can.  Mainly  a  loss,  probably .  .1 . 
Due  1886.  March  to  May,  6  notes,  Lewis  B.  Young,  own  order,  failed. 

President  thinks  Young's  mother  will  pay,  but  doubt- 
ful  


$6, 433. 10 


redited. 


Due  1886.  Henry  H.  Harrison  with  60  sh's  ($3,000)  "Duffy  Malt 
Whiskey  Co.,"  failed ;  hopeful  for  a  part 

•  Due  1877.  Jany.  "  Culbertson,"  order  "  Six ; "  hopeful 

Due  1887.  Jany.  3  notes  endorsed  Thomas  Durham  &  Son ;  hopeful 
Due  1887.  Jany.  to  Aug.  8  notes ;  hopeful  for  i 

*  Due  1887.  Sept.  2  notes ;  hopeful 

Due  1887.  Sept.  16.  "J.  H.  Haverly,"  order  C.  M.  "  Sou'thweilV"'$2o6 
paid,  not  credited ;  doubtful  for  most 

Due  1887.  Nov.  and  Dec.  3  notes;  probably  good ', 

Due  1887.  Nov.  24.  "John  C.  Lucas,  trustee,"  originally  (years  ago) 
$40,000,  difference  jjaid,  well  secured  by  city  liens  on 
owner's  proi)ertie8  in  Philadelphia  for  improvements 
made,  $1,350  paid  on  ac.  during  this  examination; 
renewed  balance 

Due  1887.  Dec.  8.  John  C.  Lucas,  with  400  shares  ($40,000)  Spring 
Lake  Beach  Improvement  Co.  (stock  not  quoted) ;  re- 
newed  during  examination ;  interest  paid 

Due  1888.  6  notes;  good '..;;;; 


1,090.98 
1,000.00 

1. 250. 00 

1. 370. 01 

3,  914. 55 

1,300.00 

325.00 

2, 630. 00 

1,770.77 

86L09 

2, 05^.  21 
450.00 


13,850.00 


12, 500. 00 
2,027.89 


52,825.60 


In  hands  of  attorney  and  carried  in  "  suspense  ac." 


n 


i 


iu 


m'3. 


:i 


r-= 


302 


INVESTIGATION   OF    NATIONAL    BANKS. 


Mem.— At  the  next  dividend  period  the  ubove  list  should  be  carefully  revised,  with 
a  view  of  charging  off  all  doubtful  values  (some  $6,000  at  least)  before  niakiug  a  divi- 
dend. .X5     T   ^ 

Balances  with  other  banks,  including  reserve  agents,  have  been  verified  by  cor- 
resi)ondence.    Interest  at  2  per  cent  is  paid  on  some  $60,000  of  deposits  and  $40,000 
bank  balances. 
Average  reserve  for  last  30  days,  29|  pr.  ct. 
Please  see  ''supplementary  sheet." 

W.  P.  Drew, 

Examiver. 
To  the  Comptroller  of  the  Currency, 

Washivglon,  D.  C. 

[Indorsed:]  Please  leave  indorsement  blank.  No.  of  bank,  2291. 
Examiner's  report  of  the  Keystone  Nat'l  Bank,  of  Philadelphia,  Pa. 
Feb.  15, 1888.    W.  P.  Drew,  examiner. 


Granville  B.  Haines,  Pruident. 


Resources. 


Gideon  W.  Marsh,  Cashier. 


Dollars. 


Liabilities. 


1,251,101,60 


37,800.00 


1.  Notes  and  bills  discounted 

2.  Demand  loans  with  collateral  se 

curitv 

3.  Overdrafts j    22.938.83 

4.  XT.  S.  bonds  to  secure  circulation*  | 

(4  J) ]     50, 000. 00 

5.  U.  S.  Iwnds  to  secure  deposits* i 

6.  U.  S.  bonds  on  hand* j 

7.  other  stocks  and  bonds j 

8.  Premiums  paid '      2,999.32 

9.  Minor  coins 2,508.11 

10.  Cash  items 27.12 

11.  Due  from  national  banks  (27) |  118, 207. 75 

12.  Due  from  State  banks  and  bankers 

(8) 

13.  Exchanges  for  clearing  bouse 
U    Checks  on  other  banRs  in  s 

place 

15.  National- bank  notes 

16.  Due  from  app'd  reserve  agents, 

viz: 
Chase  Nat  Bank,  New 

York $65,253.84 

Tradesmen's  Nat. 

Bank,  New  York ...     9, 301 .  36 


il 


1.  Capital  stock  paid  in 

2.  Suri>lus  fund 

3.  Other  undivided  profits,  viz : 

Discount $23,  734. 33 

Exohaiiye 

Interest  

Premiums 

Rents 88.75 

Priflt  and  loss '    5, 641. 95 


same 


17.  Reserve  fund  in  bank,  viz : 

Fractional  silver $4, 261 .  50 

Silver  dollars 3,  785, 00 

Silver  Tr'y  certs 58, 659. 00 

Gold  coin 8,299.00 

G old  Tr'y  certs 3, 360. 00 

Legal-tender  notes...  55,240.00 

U.S.  certs  of  dep 10,000.00 

-  C. H. certs. of dep  ....  30,000.00 


18.  5  p.  c.  red'n  fund  with  Treas.  U.  S. 

19.  Other  funds  with  Treas.  U.  S 

20.  Banking    house,   furni- 

ture and  fixtures $10, 000. 00 


16, 486. 50 
85,679.42 

32, 521. 11 
11,635.00 


74,555.20 


4.  Due 


lie  to  app'd  reserve  agents,  viz : 
Chase  Ts  at.  Bank,  New  York, 


coU.»^ 
5.  Due  to  national  banks  (6) 


21 .  Other  real  estate  and  mortgages  . . 

22.  Current  expenses $16, 338. 96 

Taxes  paid 225. 09 

Exchg 411.56 

Interest  paid 6,226.59 


173,604.50 

2,  250. 00 


10, 000. 00 


6.  Due  to  Stat«  banks  and  bankers 

7.  Dividends  unpaid 

8.  Individual  deposits,  viz : 

Subject  to  clieck.fl,  150, 438. 36 
Demand  certif  's .  9,  508. 39 

Time  certificates 

Certified  checks 

Cashier's  checks 


Dollars. 


500,000.00 
90,000.00 


29, 465. 03 


10, 343. 06 
75,189.78 


9.  United  States  deposits 

10.  Deposits  of  U.  S.  disbursing  otti- 

cers 

11.  Circulation  received $45, 000 

Less  on  hand... 1,780 


1, 159, 946. 75 


12.  State-bank  circulation  outstand- 


ing. 


Cash  short. 


23, 202. 11 
15. 24 


13.  Notes  and  bills  redistounted. 

14.  Bills  payable 


6, 799. 69 
507.50 


4,'J,  220 


Total 11,915,471.81 


Cash  over. 


Total 1,915,471.81 


*  Designate  what  U.  S.  bonds  are  held  in  each  case. 


INVESTIGATION   OF   NATIONAL   BANKS  303 

[Note. — Examiners  are  requested  to  report  below  whether  the  records  are  fully 
and  explicitly  kept,  and,  if  not,  whether  proper  corrections  and  additions  have  been 
made  during  examination;  whether  the  books  are  correctly  kept,  and  how  often 
accounts  are  balanced ;  which  officer  is  in  charge,  and  if  the  others  are  active  or 
inactive;  their  reputation,  salaries  paid,  and  bonds  required  of  them;  whether  the 
officers  are  trained  bankers  and  if  they  are  engaged  in  business  outside  of  the  bank ; 
whether  the  directors  meet  regularly  as  a  board  and  how  often;  the  number  of  shares 
owned  by  each ;  whether  they  have  active  discount  and  examining  committees  or 
leave  management  entirely  to  the  officers ;  the  number  and  classes  of  stockholders  and 
Avhether  annual  meeting  was  regular;  whether  the  office,  vault,  and  safe  are  secure, 
and  if  used  in  any  other  business  than  that  of  this  bank,  whether  its  business  is 
kept  entirely  distinct  and  separate.] 

Records:  Complete.    Bills  discounted  are  correct.    They  are  proved  semiannually. 

Other  books:  Very  well  kept.  3  individual  ledgers  (1,559  %)  balanced  monthly  ; 
net  difference  to-day,  $297.71  over. 

President :  Owns  991  shares  of  stock.  Head  of  large  of  dry  goods  (retail  house  of 
Granville  B.  Haines  &  Co.);  at  bank  for  an  hour  or  two  on  board  days,  and  occa- 
sionally on  other  days.     Salary,  $2,000.     No  bond. 

Vice-president:  Henry  Van  Beil.  Owns  300  shares  of  stock.  A  large  wine  mer- 
chant. Professes  to  be  at  bank  daily,  but  his  business  causes  frequent  absences.  A 
conservative  officer.     Salary,  $2,000;'  no  bond. 

Cashier:  The  factotum  of  the  bank.  Owns  54  shares  and  is  a  director.  A  trained, 
diligent,  popular  officer.     Salary,  .$3,500.     Bond,  $25,000. 

Assistant  cashier:  John  Haves.  Owns  no  stock.  Is  paying  teller  and  fully  occu- 
pied at  that  desk.     An  efficient  officer.     Salary,  $1,800.     Bond,  $10,000. 

Directors:  9,  owning  2,619  shares  of  stock.  Charles  McFaddeu,  a  millionaire  con- 
tractor (railroad)  owns  700  shares.  D.  P.  S.  Nichols,  horse  and  carriage  bazaar,  350 
fihs.     Meet  twice  each  week.     Examine  semiannually. 

Stockholders:  186.  All  have  certificates  of  stock.  Estate  of  John  C.  Luca*»,  late 
preset,  dec'd,  2,689  shares.    W.  F.  Torr,  a  capitalist,  750  shs.    Par  of  shares,  $50.     Sell, 

$57. 

Office,  vault,  and  safe:  Elegant  room  in  new  John  C.  Lucas  building,  Chestnut 
St.,  opposite  U.  S.  Mint.  Rent  paid,  $13,000 ;  rent  rec\l,  $4,000.  Superior  vaults  and 
safes,  time  locks  and  watchman. 

DIVIDENDS  AND  SURPLUS  (SECTIONS  5199  AND  5204,    U.    S.    REVISED   STATUTES). 

Date  of  last  dividend,  May  3, 1889.     Amount,  $ ,  3  per  cent.    Carried  to  surplus, 

$5,000. 

Charged  off  since  last  examination:   Losses, $ ;  premium, $ ;  decrease  of 

value,  5— . 

LOANS  AND  DISCOUNTS. 

A.  Paper  with  two  or  more  individual  or  firm  names $768, 370. 00 

B.  Single-name  pajier  (one  person,  company,  firm,  or  members  of  a  com- 

pany or  linn)  without  other  security 402, 683. 10 

C.  Loans  and  discounts  secured  by  real-estate  mortgages,  or  liens  upon 

real  estate 

D.  Demand  loans  secured  by  other  collaterals 37, 800. 00 

E.  Time  loans  secured  by  other  collaterals 80, 048. 50 

Total  notes  and  bills  discounted 1,288,901.60 

Included  in  the  above  are — 

F.  Bad  debts,  as  defined  in  section  5204  of  the  Revised  Statutes  ...  $8, 086. 11 

G.  Other  suspended  and  overdue  paper 17, 881,  75 

H.  Liabilities  of  directors  (individual  and  firm)  as  payers 65,  (XK).  00 

LOANS  EXCEEDING    THE  LIMIT    PRESCRIBED    BY   SECTION   5200,    U.    S.    RE\  ISED   STAT- 
UTES. 

John  Wanamaker $59,500 

John  Wanamaker,  by  H.  S.  Jones 50, 000 

$109, 500 

Granville  B.  Haines  &  Co 56,000 


'ii 


i 


n 


U 


»-,<i 

^.'-.1 


$4 


tl 


v\ 


1 


■, 


1 


i 

i 


304 


INVESTIGATION   OF   NATIONAL   BANKS. 


[Note.— Under  the  head  of  general  remarks,  the  examiner  should  mention  the  char- 
acter of  collaterals  held,  and  give  a  general  description  of  the  loans  and  discounts 
overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses,  bills  pavable 
or  other  accommodations  sought  by  the  bank,  and  the  necessity  therefor.  He  should 
schertule  all  excessive  loans  obtained  by  any  corporation,  companv,  or  firm,  through 
Its  stockholders,  members,  officers,  or  employ<?8,  for  the  benefit  and  use  of  such  com- 
pany, corporation,  or  firm,  as  may  appear  from  the  credits  such  account  has  received 
obtWineTl^^'         should  describe  the  manner  in  which  such  accommodations  were 

GENERAL    REMARKS. 

Supplementary  sheet  on  examiner's  report  of  October  10,  1889,  of  The  Keystone 
National  Bank,  Philadelphia,  Pa.  '       xue  ivt^^sione 

^  Balances  with  other  banks,  including  reserve  agents,  have  been  verified  by  corre- 

Interest  is  paid  on  deposits  (some  $250,000)  at  2  per  cent  and  3  per  cent. 
Average  reserve  for  the  last  thirty  days,  26^  per  cent. 

$s^^;  ocr.1,  i^^t  S!l!tni:m:^'  ''"*• '''  ''''^'  '^^*-  ''^  ^'^'  ^^''  ''* 

wHl'^Jl;^'?^'^^^^•''^''1'^"*'^**'  ^^^.""^  depository  for  the  city  treasurer,  alternating 
With  the  Third  National  Bank.  Balance  to-day,  $315,488.03;  average  balance  for 
each  thirty  days,  from  $820,000  to  $450,000  daily:  ^      ^^iiauce  lor 

1  ^ Y'TI^^®  Central  Sayings  Bank  and  Trust  Company,  lately  organized  with 
largely  the  same  stockholders  and  directors,  occupies  quarters  in  rearof  thebankinir 
room  of  this  bank,  paying  a  rental  to  the  bank  of  $3,000  per  annum.  It  has  to-dav 
as  deposit  m  this  bank  $117,000.  The  cashier  of  this  bank  is  the  secretary  and  treasurer 
of  the  company,  without  salary.  ^  i^i^aouiei 

Mem.— Extended  paper  doubtful  of  payment  in  full. 

1.  Due  Nov.  18,  1889,   to  .Jan\v  6,  1890,  6  notes.    Robert  A.  Jackson,  order  W 
J.  Jackson,  renewals,  $16,081.  '        ^*   »*. 

Tliese  represent  notes  done  for  the  above  of  R.  H.  Powel,  Son  &  Co.,  Chipman  & 

"ofnVbu'iLs  herT"^  "^  ''''"  """  ^"'  ^^^^'  '^"^^^^  '''''    ^^«  *^-^--  -« 

2.  Frank  J.  Primrose,  wool,  5  notes,  due  from  Nov.  9,  1889,  to  Jan'v  7,  1890  re- 
SwTorder  $12'"308  '^  '^'"'"^  business,  but  is  weak,  and  these  notes  are  to'  his 

MEM.-The  condition  of  this  bank  as  regards  its  settlements  with  the  clearing-house 
and  its  practice  of  borrowing  money  from  other  banks  is  much  improved  since  the 
last  examination  It  still  needs  an  able  and  firm  head  who  can  give  his  whole  tii  e 
i.rnT  .{;?m  "'it-  .r^^T^^'  ^^^"  repeatedly  urged  upon  the  directors,  and  there  s  a 
probability  that  J)y  January  next  the  desired  result  will  be  reached.  It  is  respect- 
fully suggested  that  the  Comptroller  refer  strenuously  to  this  necessity. 

W.  P.  DREW, 

To  the  Comptroller  of  the  Currency,  Examiner. 

Washington,  D.  C, 

Mem.— Aggregate  resers^e  short,  $17,586.04. 


P>,a?w«;~  J  11  .  1^u^^  ""^  general  remarks,  the  examiner  should  mention  the 
^^»l^l  of  collateral  held,  and  give  a  general  description  of  the  loans  and  dis- 
counts  overdrafts,  stocks  and  bonds,  other  real  estate,  cash  items,  expenses  bi  Is 
Wableor  other  accommodations  sought  by  the  bank  and  the  necessty  therefor. 
He  should  schedule  all  excessive  loans  obtained  by  any  corporation,  company  oi 
firm,  through  its  stockholders,  members,  officers  or  employes,  for  the  benefit  and  use 

?il'^'^}' "l"^^^  from  the  credits  such  account 

has  received,  or  otherwise,  and  should  describe  the  manner  in  which  such  accommo- 
dations were  obtained.]  «v.v.u*iiuiu 


INVESTIGATION   OF   NATIONAL   BANKS. 


305 


Bad  debts ; 

Demand  loan,  March  12,  1881,  Charles  E.  Blummer  &  Co.,  failed, 

worthless $2,  929. 05 

Due  1885,  Feb.  18,  Lewis  F.  Young  «fe  Co.,  failed,  doubtful 675. 00 

Due  1886,  Dec.  18,  H.  H.  Harrison,  in  suit,  doubtful 1, 300. 00 

Dne  1888,  Apl.  10,  L.  L.  McCann,  bal.  from  $3,000,  diff.   pd.,  good 

from  nine  in  board 2, 437. 06 

Due  1888,  May  1,  G.B.Morse,  doubtful 590.00 

Due  1888,  Dec.  12,  C.  F.  Turner,  good 150.00 

8,08L11 
Other  past-due  paper : 

Due  1887,  Jany.  to  June,  4  notes,  Thomas  Durham,  in  assgt.,  hopeful.  3, 490. 00 
Due  1888,  May  6,  The  Amies  Publishing  House,  failed,  in  suit,  hope- 
ful for  i  from  lithographic  plates,  etc 8, 145. 76 

Due  1888,  Aug.,  Boden  $900,  Oct.,  Keating  $^116.66,  hopeful,  in  suit.  1, 316. 66. 

Due  1888,  Nov.  16,  W.  J.  Kelly,  in  suit,  hopeful 2, 040. 00 

Due  1889,  7  notes,  recent  and  good,  $1,857.10,  renewed  during  examin- 
ation   2,889.33 

17,88L75 
Mkm. — The  administrators  of  the  estate  of  the  late  John  C.  Lucas, 
deed.,  former  i)resident  of  this  bank,  have  agreed  to  pay  off  (within  the 
next  three  months  probably)  the  following  discounted  notes,  in  which  he 
was  more  or  less  interested,  and  on  which  the  interest  has  been  regularly 
l)aid : 
Demand  notes : 

John  C.  Lucas,  trustee  (with  $13,200  municipal  liens) 12,  .500. 00 

John  C.  Lucas  (with  400  shs.  $20,000,  Spring  Lake,  N.  J.,  Beach  Im- 
provement Co.) 12,500.00 

John  C.  Lucas'  own  order i,  800. 00 

William  Armstrong,  order  John  C.  Lucas,  prest 8, 136. 00 

Samuel  B.  Griffith,  order  John  C.  Lucas,  prest 7, 278. 00 

Time  loans : 

W.  H.  Moyer,  order  James  K.  White 27,885.22 

70, 099. 22 

The  administrators  state  that  the  estate  will  settle  up  for  $400,000,  at  least,  above 
all  liabilities.    My  best  information  supports  this  view. 
Please  see  supplementary  sheet. 

W.  P.  Drew, 

^      ,     ^  Examinei\ 

To  the  Comptroller  of  the  Currency, 

Washington,  D,  C, 

[Indorsed:]  Please  leave  indorsement  blank.  No.  of  bank,  2291.  Examiner's  re- 
port of  The  Keystone  Natl.  Bank  of  Philadelphia,  Penna.,  October  10, 1839.  W.  P. 
Drew,  Examiner. 

3792 ^20 


I 


GENERAL  REMARKS. 

Overdrafts  (54ac8.): 

Estate  John  C.  Lucas,  late  presdt.,  dec'd,  good  (see  below)...  $4  595  §7 

Mrs.  M.  E.  Lucas  (widow  of  above)  has  $48,000  credit  in  other'ac' ! '  4  049*  52 

John  Wannamaker,  good  by  another  ac 2  907*  63 

Mrs.  M.  B.  Wannamaker,  good  by  another  ac * "  3'  474"  gn 

50ac8.;  estimated  loss, $559. 27 '..'.'.'.....'.......  4' 910^95 

22,938.83 


P^H:  • 


I:.:' 


* 

.''y    I 


\ 


.IF 


306  INVESTIGATION   OF   NATIONAL   BANKS. 

[Use  the  blank  linos  if  necossary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

No.  of  bauk,  2291. 

Report  of  the  condition  of  "  The  Keystone  National  Bank"  at  Philada.,  in  the  State  of 
Penna.,  at  the  close  of  business  on  the  18th  day  of  July,  1890. 


Db. 


Cm. 


Resources. 


Dollars. 


1  Loaus  and  discounts  (see  sched- 

ule)  

2  Overdrafts  (see  schitlule) -^ . . . 

3  U.  S.  bonds  to  secure  circulation 

(par  value per  cents. . 

4  U.  S.  bonds  to  secure  deposits  (par 

value per  cents.. 

5  TJ.  S.  bonds  on  hand  (par  value) 

])er  cents .  - 

G  Stocks.      securities,      iudgment, 
claims,  etc.,  (see  schedule) 


1,209,719.36 
916.72 

50,000.00 


7  Due  from  apjiroved  reserve  agents 

(sec  srhedule) 

8  Due  from  other  National  banks 

9  Due  from  State  and  private  banks 

and  hankers 

10  Banking  house 

11  Furniture  ami  fixtures 

VI  Other  real  estate  and  mortgages 

owned  (see  si^hedule) 

13  Current  expen.ses  and  taxes  paid. . 

14  Premium  on  bonds  for  circulation, 

$          Premium  on  other  U.  S. 
bonds,  $ 


19 


15  Check.s  and  other  cash  items  (see 

schedule) 

16  Exchanges  for  clearing  house 

17  Bills  of  other  banks 

18  Fractional  paper  currency,  nickels, 
and  cents '. 

Specie,  viz : 

Gold  coin $2,042.50 

Gold   treasury    certifi- 
cates   

Gold  deai'ing-house  cer- 
tificates    

Silver  dollars 8,437.00 

Silver  treasury  certifi- 
cates   

Fractional  silver  coin 

Legal-tender  notes 

United  States  certificates  of  de- 


20 
21 


posit  for  legal- tender  notes  (sec. 
5193,  Rev.  Stat.) 

22  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent.  ro<lemption  fund. 


126,726.90 
159,168.03 

49,213.12 

10,000.00 

8,661.71 

1,000.00 


12,078.93 

216,442.72 

2,000.00 

864.15 


Liabilities. 


1  Capital  stock  paid  in 


Dollars. 


2  Surplus  fund 

3  Unaivide<l  profits 


4  Circulating  notes  received  from 

Comptroller 

Less  am't  on  hand  and  in  Treas- 
ury for  redemption  or  in  tran- 
sit  

5  Stat«  bank  circulation  outstand- 

iug 


6  Dividends  unpaid 


7  Individual  deposits 

subject  to  check  ..  $1,037,776.63 

8  Demand  certificates 

of  de{H>sit 

9  Time  certificates  of 

deposit 

10  Certifie<l  cheeks 

11  Cashier's  chcx'ks  out- 

standing,     teller 

due  bills 110,599.35 


12  United  States  deposits 

12  Deposits  of  U.  b.  disbursing  offi- 
cers   


14  Due  to  approved  reserve  agents 

(see  .schedule) 

15  Due  to  other  National  banks 

16  Due  to  State  and  private  banks 

and  bankers , 


500,000.00 

100,000.00 
14,374.47 


45,000.00 
1,218.00 


1,148,375.89 


10,479.50 
58,985.00 


17  Notes  and  bills  re-discounted. 

18  Bills  payable 


2,250.00 


Total 


1,918,536.14 


8,328.40 
1,238.78 

100,000.00 


Total 


1,918,536.14 


XV  \^?'*°.^*^'®'^*  ^^^-  ^^  "  ^**^  Keystone  National  Bank,  Philadelphia,  Penna.,"  do  solemnly  swear 
that  the  above  statement  is  true,  to  the  best  of  mv  knowledgeand  belief,  and  that  the  schedules'on  back 
ot  the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  8tat«  of  the 
several  matters  therein  contained. 
Correct.— Attest: 

John  Hayes,  Cashier. 
G.  B.  Uainks, 
G.  W.  Marsh, 
Samuel  Lucas, 

Direetort. 
State  of  Pennsylvania,  County  of  Philadelphia: 
Sworn  to  and  subscribed  before  me  this  29th  day  of  July,  1890. 
[^^^^■]  Henry  G.  Hart, 

Notary  Public. 

Must  be  acknowledged  bsfore  an  officer  using  an  official  seal See  act  approved  Feb.  26, 1881. 


INVESTIGATION  OF   NATIONAL  BANKS. 


307 


[Fill  all  cchedules,  writing  in  the  word  "  none  "  wherever  no  amount  is  to  be  entered.  J  ^ 

SCHEDULES. 

Loam  and  digeountg. 

On  demand,  <m  U.S.  bonds '- 

'«          "         "  stocks,  bonds,  and  other  personal  securities $133,935.67 

On  time,  paper  with  two  or  more  individual  or  firm  names 608,226.32 

"      "    single-name  paper  (one  person  or  firm)  without  other  security 398,610.01 

"      ••    secured  bv  stocks,  bonds,  and  other  personal  securities 68, 947. 36 

*•      "    on  mortgages  or  other  real-estat«  security  (see  schedule) 

Total 1,209,719.36 


Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  R«v.  Stat $13, 248. 13 

Other  suspended  and  overdue  paper , None. 

Liabilities  of  directors  (individual  and  firm)  as  payers    42, 403. 00 


Enter  the  amount  in  each  of  these 
three  items,  or  write  in  the  word 
"none"  if  there  is  no  amount 
to  enter. 


Loans  exceeding  the  limit  prescribed  by  Section  5200  of  the  Revised  Statutes,  including  amounts  which  ex- 
ec^ this  limit  due  from  State  and  private  banks  and  bankers. 


Name  of  borrower. 


J.  Wanamaker  . 
Est  J.C.Lucas. 


Enter    fall 

amount  of 

loan. 


$110,000 
57,000 


Stocks,  securities,  judgments,  claims,  etc. 


Enter  number 

shares  of  stock 

or  face  value 

of  bonds. 


Name  of  corporation  issuing 
stock,  bonds,  et<5. 


Amount  at 
which  car- 
ried on 
books. 


Estimated 
actual  mar- 
ket value 


State    whether   taken  for 
"debts  previously  con- 
tracted,   or  otherwise. 


Balances  due  from  or  to  approved  reserve  agents. 

From— 
Enter  name  and  location  of  bank. 

Amount. 

To— 
Enter  name  and  location  of  bank. 

Amount. 

Tradesmen's  Nat'l .................... 

$74,796.38 
51,930.52 

Chase                 "     

Cheeks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city. 

Check  and  drafts  on  other  banks 


Average-reserve  atid  t7if«>«*f.— Average  reserve  for  last  30  days  (in  bank  and  with  reserve  agents), 
was  23  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3 
per  cent. 

Overdrafts. 


Secured. 


Standing  12  months  or  over 

ti  a  11  11 

It  o  ti  (1 

"  1 

Temporary , 


II 


Unsecured. 


Standing  12  months  or  over. 

II  a  11  II 


1 


Temporary 


Other  real  estate  and  mortgages  owned. — None. 

Loans  and  discounts,  secured  by  mortgages  or  other  real-estate  security. — None. 

Committee  a<]journed  subject  to  the  call  of  the  chairman. 


916. 72 


l:J 


I 


' 


i 


■i 


■1 

1,1 


I     vl 


308 


INVESTIGATION   OF   NATIONAL   BANKS. 


Washington,  D.  C, 

_,^  .,,  Thursday^  May  19, 1892. 

The  committee  met  at  11  a.  m. 

Present:  The  chairman  (Mr.  Bacon)  and  Messrs.  Dickerson,  Town- 
send,  Cobb,  Henderson,  Brosius,  Cox,  Sperry,  Walker,  and  Bussey. 

The  Chairman  (to  the  stenographer).  I  will  have  put  in  evidence 
the  following  papers : 

Report  of  the  Keystone  National  Bank,  dated  August  27, 1886,  and 
marked  Exhibit  1; 

Exhibit  1.— May  19, 1892. 

No.  of  bank,  2291. 

[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  ''The  Keystone  National  Bank"  at  Philada.,  in  the  State  of 


Db. 


Fenna,,  at  the  close  of  business  on  the  27th  day  of  Augustj'lSSd. 


Or. 


Kesonrces. 


1  Loans  and  discounts  (see  schedule) . 

2  Overdraft* • 

3  U.  S.  bonds  to  secure  circulation 

(par  value)  .per  cents,  3  per  cents . 

4  U.  S.  bonds  t<)  secure  deposits  (par 

value)— per  cents 

5  TJ.  S.  bonds  on  hand  (par  value) 

—per  cents 

6  Other  st^ocks,  bonds,  and  mortgages 

(see  schedule) 


Dollars. 


1,208,177.14 
677. 82 

50,000.00 


7  Due  from  approved  reser\'e  agents 

(see  schedule) , 

8  Due  from  other  national  banks 

9  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10  Banking  house 

11  Other  real  estate 

12  Furniture  and  ftxtures  .$10,  000. 00 


13  Current  exi)enses  and  taxes  paid  . . 

14  Premium  paid  on  bonds  for  circu- 

lation, $     .  Other  premiums,  $. . 

15  Checks  and  other  cash  items  (see 

schedule) 

16  Exchanges  for  clearing  house 

17  Bills  of  other  banks 

18  Fractional  paper  currency,  nickels, 

and  cents 

19  Trade  dollars 

20  Specie,  viz: 

Gold  coin $25,300.00 

Gold  treasury  certifi- 
cates (sec.  254,  Rev. 
Stat.) 

Gold  treasury  certifi- 
cates (sec.  12,  act  of 
July  12, 1882) 

Gold    clearing-house 
certificates 40, 000. 00 

Silver  coin,  dolls., 
16,700;   fract'l.  5,300  22,000.00 

Silver  treasurv  certifi- 
cates (Act  i'eb'v  28, 
1878) 


21  Legal-tender  notes 

22  United  States    certificates   of  de- 

posit for  legal-tender  notes  (sec. 
5193,  Rev.^t.) 

23  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent  on 
circulation) 

24  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redemption  fund) . 


47, 577. 81 
65, 043. 59 

19, 990. 02 


10, 000. 00 
8,791.41 


5,  325. 00 

42, 583. 03 

2,  700. 00 

147. 82 
2,000.00 


87,300.00 
88, 000. 00 


40, 000. 00 
3,950.00 


Total 


1,682,263.64 


Liabilities. 


1  Capital  stock  paid  in. 

2  Surplus  fund 

3  Undivided  profits 


4  Circulating  notes  re- 
ceived from  Comptrol- 
ler  

Less  amt.  on  hand  and  in  Treas- 
ury for  redemption 


Dollars. 


400, 000. 00 

70, 000. 00 
22,460.00 


5  State  bank  circulation  outstand- 
ing  


6  Dividends  unpaid. 


7  Individual    deposits 

subject  to  check.  .$1, 049, 389. 36 

8  Demand   certificates 

of  deposit 

9  Time  certificates  of 

deposit 

10  Certified  checks.... 

11  Cashier's  checksout- 

standing,  teller's 

due  bills 27,343.22 


12  United  States  dej^sits 

13  Deposits  of  U.  S.  disbursing  offi- 

cers  


14  Due  to  other  national  banks 

15  Due  to  Stat«  and  private  banks 

and  bankers 


16  Note*  and  bills  re-discounted. 

17  Bills  payable 


45, 000. 00 


114.12 


1,078,732.58 

59, 568. 31 
8,388.63 


Total 11,682,263.64 


INVESTIGATION    OP   NATIONAL   BANKS. 


309 


I,  G.  W.  Marsh,  cash'r  of  "  The  Keystone  Nat'l  Bank,  I'liiladelphia,  Penna.,"  dosolenuily  swear  that 
_-, ._. .  .    ._ ^^.^^.^ 


the  above  statement  is  true,  to  the  best  of  my  knowledge  and  be 
Correct.— Attest : 


Statb  of  Penna.,  County  of  Philada: 
Sworn  to  and  subscribed  before  me  this  Slst  day  of  March,  1886. 

[8EAL.] 


G.  W.  Marsh,  Cashier. 
D.  P.  S.  Nichols, 
Samuel  Lucas, 
Louis  Dreka, 

Directors. 


John  W.  Barron, 

Notary  Public. 


Must  be  acknowledged  before  an  officer  having  an  official  seal.— See  act  approved  Feb.  26, 1881. 

SCHEDULES.     . 
Loans  and  discounts. 

Onpai)er  with  two  or  more  individual  or  firm  names $965,828.58 

On  single-name  papers  (one  person  or  firm)  without  other  security 85^  600. 00 

On  mortgages  and  other  real  estate  security 

On  U.  S.  bonds  (demand  loans) !!!!.!!!!!!! 

On  other  stocks,  bonds,  etc.  (demand  loans) !.!!!.*!!!!!!!!!!!!!! 

On  time  secured  by  collaterals I..!!J..l!!i!J!!!I!*!,'!!      156  748. 56 


Included  in  the  above  are — 

Bad  debts,  as  defined  in  section  5204,  Rev.Stat $ 

Other  suspended  and  overdue  paper !!!!!!. 

Liabilities  of  directors  (individual  and  firm)  as  payers 


1, 208, 177. 14 


9,432.81 
78, 724. 53 


^11 


Due  from  approved  reserve  agents. 


Tradesman's,  N.  Y 

Hanover,  N.  Y 


$26, 563. 89 
21, 013. 82 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks 

Coupons 


$5, 325. 00 


U.  S.  refunding  certificates. 


Average  reserve  and  interest.— A\eT»ge  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  26.53  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3 
percent.  x-         j 


M 


11 


:t 


i 


t-r^' 


310 


INVESTIGATION   OF   NATIONAL   BANKS. 


Eeport  of  the  condition  of  the  Keystone  National  Bank,  dated  Oct.  7, 
1886,  and  marked  Exhibit  2. 

ExmBiT  2--May  19, 1892. 

No.  of  Bank,  2291. 

[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 
Eepori  of  the  condition  of  ''  The  Keystone  National  Bank,"  at  Philada.,  in  the  State  of 


Penna.,  at  the  close  of  business  on  the  7  day  of  October,  1886. 


Dr. 


Cb. 


Resources. 


1  Loans  and  discounts  (see  sched- 

ule)  

2  Overdmfts 

3  V.  S.  bonds  to  secure  circulation 

(par  value) — per  cents — percents. 

4  U.  S.  bonds  to  secure  deposits  (par 

value) .  .per  cents 

5  U.  S.  bonds  on  hand  (par  value) 

— per  cents 

6  Stocks,  securities  J  udgment,claim8, 

etc.  (see  schedule) 


Dtdlars. 


1,208,398.12 
687.59 

50,000.00 


7  Due  from  approved  reserve  agents 

(see  schedule) 

8  Due  from  other  national  banks 

9  Due  from  State  and  private  banks 

and  bankers 

10  Banking  house $ 

11  Furniture  and  axtures . .  $10, 000. 00 


12  Other  real  estate  and  mortgages 

owned  (see  si'liedule) 

13  Current  expenses  and  taxes  paid  .. 

14  Premium  on  bonds  for  circulation, 

$        .     Premium  on  other  U.  S. 
bonds,  $ 


15  Checks  and  other  cash  items  (see 

schedule)   

16  Exchanges  for  clearing  house 

17  Bills  of  other  banks 

18  Fractional  paper  currency,  nickels, 

and  cents 

19  Trade  dollars 

20  Specie,  viz: 

Gold  coin $29, 180. 00 

Gold   treasury  certifi- 
cates   

Gold  clearing  house  cer- 
tificates  50,000.00 


Silver  dollars 22, 400. 00 

Silver  treasury  certifi- 

Fractional  silver  coin.  10,420.00 


105, 331. 45 
71, 110. 87 

20, 020, 69 
10,000.00 
12, 369. 39 


12, 969. 10 

93,  704. 08 

4, 780. 00 

494.93 
2,000.00 


Liabilities. 


1  Capital  stock  paid  in 


2  Surplus  fund 

3  Undivided  profits 


4  Circulating  notes  received 

from  Comptroller $45, 000 

Less  am't  on  hand  and  in 
Treasury  for  redemption 
or  in  transit 


5  State  bank  circulation  outstanding 

6  Dividends  unpaid 

7  Individual  deposits 

subject  to  check. .  $1, 120, 765. 69 

8  Demand  certificates 

of  deposit 

9  Time  certificates  of 

deposit 

10  Certified  checks 

11  Cashier's  checks  out- 

standing         32,605.46 


Dollars. 


400,000.00 

70, 000. 00 
25,919.97 


45,000 


611.34 


32,820.00 


21  Legal-t«nder  notes 

22  United  States  certificates  of  deposit 

for  legal-tender  notes  (sec.  5193, 
Rev.  Stat.) 

23  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent, 
on  circulation) 

24  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  (redemption  fund. 


Total 


112,000.00 
59,000.00 


30, 000. 00 
2,250.00 


12  Unite<l  States  deposits 

13  Deposits  of  U.  S.  disbursing  officers 

14  Due  to  approved  reserve  agents 

(see  schedule) 

15  Due  to  other  national  banks 

16  Due  to  State  and  private  banks  and 


1, 153, 371. 15 


bankers 


17  Notes  and  bills  rediscounted 

18  Bills  payable 


77,925.86 
22, 297. 90 


1,795,126.22 


Total 


1, 795, 126. 22 


I,  G.  W.  Marsh,  cashier  of  "  The  Keystone  Natl  Bank,  Philadel).hia,  Penna.. "  do  solemnly  swear  that 
the  above  statement  is  true,  to  the  best  of  mv  knowledge  and  belief,  and  that  the  schedule.s  on  back 
of  the  report  have  been  carefully  filled  out  and  fully  and  correctly  represent  the  true  stsite  of  the  several 
matters  therein  contained.  ^  ™^  ,,  a.    i  • 

Correct  -Attest.  ^'-  ^  Marsh,  Canhier. 

(iRANviLLE  B.  Halves, 
,  D.  P.  S.  Nichols. 

Samuel  Lucas, 

Directors. 


INVESTIGATION    OF   NATIONAL    BANKS.  311 

<■ 

Statb  op  Pennsylvanla.,  County  of  Philadelphia : 

Sworn  to  and  subscribed  before  me  this  fourteenth  day  of  Oct.,  1886.  u  ,«„^« 

ra-.,  1  .  JOHN,  VV.  isAKRON, 

V^^^^^-i  Xotary  Pvblie. 

Must  be  acknowledged  before  an  officer  having  an  official  seal.— See  act  approvetl  Feb.  26, 1881. 
[Fill  all  8Che«lule8,  writing  in  the  word  "  none"  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 
Loans  and  diteounts. 

On  demand,  on  U.  S.  bonds - --: 

-'  stocks,  bonds,  and  other  personal  securities 

On  time,  paper  with  two  or  more  individual  or  firm  names -  - ?«^-  *^-  ^ 

"      "     single-name  paper  (one  person  or  firm),  without  other  security lio'o^'^ 

"      "     secured  by  collaterals -.-; ;-  ■  v;--c;"'r;o;;'^'c'/:;;     148,347.90 

On  time,  on  mortgajjes  and  other  real-estate  securities  sanctioned  by  bee.  5i,J7,  K.  &.  (see 

schedule)    : ," ; ' "v;  — ei"o-t "i*  o ' '^L 

On  time,  on  mortgages  and  other  real-estate,  securities  not  sanctiouetl  by  bee.  51  .J7,  k.  b.  see 

schedule) 

Total - 1,208,398.12 

Including  the  above  are — 

Baddebts.as  defined  in  Sec. 5204,  Rev.  Stat 

Other  .suspended  and  overdue  paper foooi  R^ 

Liabilities  of  directors  (individual  and  firm)  as  payers *^>  »-*•  *» 

Balances  due  from  or  to  approved  reserve  agents. 


From— 


Tradesman's,  N.  T. 
Hanover,  N.  Y 


To— 


$73, 383. 13 
31, 948. 32 


Cheeks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city - 

Checks  and  drafts  on  other  banks 


Average  reserve  and  inter  est. —Axersige  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  was 
32.36  per  cent  of  deposits  and  bank  balances.  The  highest  rate  of  interest  paid  by  the  bank  is  3  per 
cent. 


.Ml 
■>' 


n 


•r 


i 


pi'p 


<■ 


312 


INVESTIGATION   OF   NATIONAL   BANKS. 


Kepoit  of  the  condition  of  the  Keystone  Natioual  Bank,  dated  D^ 
cember  28, 188G,  marked  Exhibit  3 : 

Exhibit  3— May  19,  1892. 
No.  of  bank,  2291. 

[Use  the  blank  linos  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Repartof  the  comlition  of  "  The  Keystone  National  Bank,"  at  Philada.,  in  the  State  of 
Fenna.,  at  the  close  of  bnainesa  on  the  28th  day  of  December,  1886. 

3^«-  CE. 


Resources. 


Dollars. 


Liabilities. 


1  Loans  and  discounts  (see  schedule)  1,26(»,524.59 

2  Overdrafts  (see  schedule) 892.63 

3  U.  S.  bonds  to  secure  circulation 

(par  value),  — percents,  3  per  cents     50, 000. 00 

4  U.  S.  bonds  to  secure  deposits  (par 

value),   -per cents 

6  U.  S.  bonds  on  hand  (par  value), 

— per  cents 

6  Stocks,  securities,  Judgments, 

claims,  etc.  (see  schedule) 


7  Due  from  approved  reserve  agents 

(see  schedule) , 

8  Due  from  other  national  banks 

9  Due  from  State  aiul  i)rivate  banks 

and  bankers 

10  Banking  house $ 

11  Furniture  and  fixtures.  .$10, 000. 00 


12  other  real  estate  and  mortgages 

owned  (see  schedule) 

13  Current  expenses  and  taxes  paid  . . 

14  Premium  on  bonds  for  circulation, 

$  Premium  on  other  U.  S. 

bonds,  $ 

Trade  dollars 

15  Checks  and  other  cash  items  (see 

schedule) 

16  Exchanges  for  clearing  Iiouse 

17  IJills  of  other  banks 

18  Fractional  paper  currency,  nickels, 

and  cents * 

19  Specie,  viz: 

Gold  coin $56, 400. 00 

Gold  treasury  certifi- 
cates   50, 000. 00 


1  Capital  stock  paid  in. 


2  Suridus  fund 

3  Undivided  profits. 


Gold     clearing-house 
certificates 

Silver  dollars 18,  000. 00 

Silver  treasury  certifi- 
cates  '. 

Fractional  silver  coin .    8, 706. 00 


88, 502. 56 
74, 732. 58 

26, 973. 78 


10, 000. 00 
4,  760, 07 

2,000.00 

27. 884.  99 

2.30, 571. 46 

33, 600. 00 

1, 531. 01 


4  Circulating  notes  re- 
ceived   from    Conip- 

tndler $ 

Less  am't  on  hand  and 
in  Treasury  for  re- 
demption or  in  tran- 
sit   


5  State  bank  circulation  outstand- 
ing  


Dollars. 


400, 000. 00 

80, 000. 00 
9,563.97 


6  Dividends  unpaid 


7  Individual     deposits 

subject  to  check. ..  $1,256,086.40 

8  Demand    certificates 

of  deposit 

9  Time  certificates  of 

deposit 

10  Certified  checks 

11  Cashier's  checks  out- 

standing       81,175.46 


45,000.00 


4,886.00 


26,  706. 00 


20  Legal-tender  notes 

21  United    States  certificates  of  de- 

posit for  legal-tender  notes  (sec. 
5193,  Uev.  Stat.) 

22  Redemption  fund  with  U.  S.  Treas- 

lu-er  (not  more  than  5  per  cent 
on  circulation) 

23  Duo  from  U.  S.  Tn^asurer  (other 

than  5  percent  redemption  fund). 


133, 106. 00 
80, 000. 00 


20, 000. 00 
2, 250. 00 


12  United  States  deposits 

13  Deposits  of  U.  S.  disbursing  offi- 

cers   


14  Due  to  a])proved  reserve  agents 

(see  schedule) 

15  Due  to  other  national  banks 

16  Due  to  State  and  private  banks 

and  bankers 


1,437,801.86 


37, 928. 88 
32, 088. 96 


Total 2,047,329.67 


17  Notes  and  bills  re-discountcnl 

18  Hills  payable 


Total 2,047,329.67 


thaV?i;^wf fJlifT^'fi  **!"  "^l'®  Keystone  Natl  l^ank,  Philadelphia.  Penna.,"  do  solemnly  swear 
wt.!f  <h«Iln^V    *'"i*^^''"'''*^,l^  my  knowledge  and  oelief,  .ind  that  the  schedules  on 

sever:l^;^rtterthiein  S  '"^'  °"^  ""'  '""^  ^"^^  ^"'■^*'^">'  ^^''^^^^"^  ''''  ''"^^  ''^'^  "^^  '^^ 

Correct.-Attest :  (j  y^  m^^,„  ^„,^f^^ 

Gra.wille  B.  Haines, 
Louis  Dkeka, 
d.p.  s.  n1cu0l.s, 
"  IHreetoTM. 


INVESTIGATION   OF   NATIONAL   BANKS.  313 

S^gATE  OK  Pennsylva.via,  County  of  VhiladAilphia : 
Sworn  to  and  subscribe*!  before  me  this  eleventh  day  of  January,  1887. 

(SEAL.!  John  W.  Barron, 

Notary  Public. 

Must  be  acknowle<lged  before  an  officer  having  an  official  seal.— See  act  approved  Feb.  26, 1881. 

[Fill  all  sche<lule8,  writing  in  the  word  "  none  "  wherever  no  amount  is  to  be  entered.] 

SCHEDULES. 

Loans  and  discountt. 

On  demand,  on  U.  S.  bonds 

"  "         "  stocks,  bonds,  and  other  i>ersonal  securities 

On  time,  paper  with  two  or  more  individual  or  firm  names $1,055,869.31 

"     "     single-name  paper  (one  person  or  firm)  without  other  security 85, 926. 37 

•'      "     secured  bv  collaterals 118, 728. 91 

"     "     on  mortgages  and  other  real-estate  security  sanctioned  by  sec.  5137,  R.S.  (see 

schedule) 

"      "     on  moi't gages  and  other  real-estate  security  not  sanctioned  by  sec.  5137,  R.  S. 
(see  schedule) 

Total 1,260,524.59 

Included  in  the  above  are- 
Bad  debts,  a.s  defined  in  section  5204,  Rev.  Stat 

Other  suspended  and  overdue  paper 7, 532. 61 

Liabilities  of  directors  (individual  and  firm)  as  payers 43, 788. 06 

Baldnces  due  from  or  to  approved  reserve  agents. 


From— 

To- 

Tradesman's.  N.  Y 

$55, 635. 21 
32, 807. 35 

Hanover  N.  Y. ...... ...... ........... 

Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in  1 

t  iiis  city j  $27, 884. 99 

Checks  and  drafts  on  other  banks 


Average  reserve  and  interest.— Axerage  reserve  for  last  30  days  (in  bank  and  with  reserve  agents) 
was  2.^>.45  per  cent  of  deposit  and  bank  balances.  The  highest  rate  of  iuterest-^paid  by  the  bank  is  3 
per  cent. 


^.1 


u 


9  i  J 


♦■"el 


Tpijiitj  in^.  -|i  m 


•:*. 


I 
) 

r  ■ 


314 


INVESTIGATION   OF   NATIONAL   BANK8. 


Eeport  of  the  condition  of  the  Keystone  Kational  Bank,  dated  March 
4, 1887,  and  marked  ''  Exhibit  4.^ 

P:xhibit  4--May  19,  1892. 

No.  of  bank,  2291. 
[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

Report  of  the  condition  of  the  Keystone  National  Bank,  at  Philadelphia,  in  the  State 
oj  Pennsylvania,  at  the  close  of  business  on  the  4th  day  of  March,  1887. 


Db. 


Cb. 


Resources. 


1  Loantt  and  discountet  (see  schedule) . 


Dollars. 


1,318,932.83 


Liabilities. 


Dollars. 


2  Overdrafts \      i,  148. 91 

3  U.  S.  bonds  to    secure  circulation  I 


1  Capital  stock  paid  in. 


(par  value) per  cents 

4  U.  S.  bonds  to  secure  depiosits  (par 

value) per  cents. . 

5  IT.  S.  bonds  on  hand  (par  value) 

per  cents 

5  other  stocks, bonds,  and  mortgages 
(see  schedule) 


50.000.00 


7  Due  from  apj)rove<l  reserve  agents 

(see  schedule) 

8  Due  from  other  national  banks 

9  Due  from  State  and  private  banks 

and  bankers  (8««  schedule) 

10  Bankin<r  house 

11  Other  real  estate 

12  Furniture  and  flxtures..  $10, 000. 00 


83, 941.  G4 
58, 710.  52 

19, 701. 20 


10, 000.  00 


2  Surplus  fund 

3  Undivided  profits. 


4  Circulating  notes  received 

from  Comptroller 

Less  am't  on  liand  and  in 
Treasury  for  redemption 
or  in  transit 


5  State  bank  circulation  outstanding 

6  Dividends  unpaid 


400,000.00 

80,000.00 
19. 575. 51 


13  Current  expenses  and  taxes  paid. .  I    14, 295. 22 

14  Premium  paid— on  bonds  for  ciixu- 

lation,  $- ,  other  premiums,  $ — . 


7  Individual    deposits 

subject  to  check. .  .$1,  275, 515. 40 

8  Demand  certificates 

of  deposit 

9  Time  certificates  of 

deposit 

10  Certified  checks 

11  Cashier's     checks 
outstanding,  teller's 
due  bills 63,999.21 


45, 000.  00 


C17. 50 


15  Due  to  State  and  private  banks 
and  bankers 


15  Checks  and  other  cash  items  (see 

scheilule) 32,377.96 

16  Exchanges  for  clearing  house 104,850.45  ij  12  United  States  deposits 

\l  S'"  V*  ***/'*''  ^^^^"^ i  •  r  V  •  •  i    12, 380. 00  ij  18  Deposits  of  U.  S.  disbursing  officer'. 

18  Fractional  paper-currency,  nickels,  ,  ;j  * 

and  cents j         25.5.80  :}  14  Due  to  other  national  banks 

Tradedollars 30,000.00       

19  Specie,  viz:  I 

Gold  coin $22,  953, 00 

Gold  Treasury  certifi- 
cates (Sec.  ^,  Sev. 
Stat.) 

Gold  Treasury  certifi- 
cates (Sec.  12,  act  of 
July  12, 1882) 

Gold  clearing-house 
certificates 60,000.00 

Silver  coin,  dolls., 
7, 500 ;  fract'l,  5,449  . .     12, 949. 00 

Silver  Treasury  cer- 
tificates (act  Feby. 
28,1878) 


20  Legal-tender  notes , 

21  United  States  certificates  of  deposit 

for  legal-teudcr  uotes  (Sec.  5193, 
Rev.Stat.) 

22  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23  Due  from  U.  S.  Treasurer  (other 

than  5  percent  redemption  fund) . 


95,  902. 00 
108,  827. 00 


2,  250. 00 


16  Notes  and  bills  re-discounted 

17  Bills  payable 


1,339,514.61 

37, 625. 85 
21,240.06 


Total 


1,943,573.53 


Total 1,943.573.53 


♦Jv^l^?^*^*^*'  ^a8*»»er  of  ''  The  Keystone  National  Bank,  Philadelphia,  Penna.,"  do  solemnly  swear 
that  the  above  statement  is  true  to  the  best  of  my  knowledge  and  belief.  •  >    ""  owioiuHiy  aw«ir 

f^^r^^r,*^     A*+^^*  •  G.  W.  Marsh,  Ganhier. 

torrect-Attest.  Granvillb  B.  Haines, 

D.  P.  S.  N1CH01.8, 
Louis  Dbeka, 

Directort. 


INVESTIGATION   OF   NATIONAL   BANKS. 


315 


State  of  Pknnsvlvania,  County  of  Philadelphia,  st: 
Sworn  to  and  subscribed  before  me  this  tenth  day  of  March,  1887. 
[8BAI..]  / 


John  W.  Barron, 

Notary  Ptiblie. 


Must  be  acknowledged  before  an  officer  having  an  official  seal.    See  act  approval  Feb.  26, 1881. 

SCHEDULES. 
Loans  and  discounts. 

On  paper  witb  two  or  more  individual  or  Ann  nanies-. -- ^^'^?' 639  79 

On  single-name  paper  (one  person  or  firm)  without  other  security vi,wy.  iv 

On  mortgages  and  other  real-estate  security 

On  U.S. bonds  (demand  loans) 

On  other  stocks,  bonds,  etc.  (demand  loans) 

All  other  loans 


Total 


Included  in  the  above  are- 
Bad  debts,  as  defined  in  section  5204,  Rev.  Stat 

Other  suspended  and  overdue  paper 

Liabilities  of  directors  (individual  and  firm)  as  payers 


1,318,932.83 


15,693.22 
57, 288. 06 


Due  from  approved  reserve  agents. 


Tradesmans,  N.  Y 
Hanover,  N.  Y 


59, 329. 77 
24, 611. 87 


Checks  and  other  cash  items. 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Checks  and  drafts  on  other  banks 

Coupon  s 


$32,377.96 


U.  S.  refunding  certificates. 


Averaae  reserve  and  inUrest.-AxeTnge  reserve  for  last  30  days  (in  bank  and  with  reser^^e  agents)  was 
I7  per  cJnt^dep^ite  and  bank  baltnces.    The  highest  rate  of  interest  paid  by  tli«  banT.  is  i  per 


27.07  per 
cent. 


V; 


1  -i. 

•  y 


f-j 


' 


316  INVESTIGATION   OF   NATIONAL   BANKS. 

Report  of  the  Keystone  National  Bank,  dated  May  13, 1887,  marked 
Exhibits.- 

Exhibit  5— May  19, 1892. 

No.  of  bank,  2291. 

[IJsft  the  blank  lines  if  necessarj-,  bnt  do  not  erase  or  change  any  of  the  printed  Items. 

Eeport  of  the  condition  of  ''the  Keystone  National  Bank,"  at  Philadelphia,  in  the  State  of 
Penn.,  at  the  close  of  busineaa  on  the  ISth  day  of  May,  1887. 


Db. 


Cb. 


Resources. 


Dollars. 


1  Loans  and  discounts  (see  schedule) 

2  Overdrafts 

3  U.  S.  bonds  to  secure  circulation 

(par  value) 

4  U.  S.  bonds  t«  secure  deposits  (par 

value) 

5  U.  S.  bonds  on  hand  (par  value) 

6  Other   stocks,   bonds,   and    mort- 

gages (see  sclit'dule) ,  . 

7  Due  from  approved  reserve  agents 

(see  schedule) 

8  Due  from  other  national  banks  . . . 

9  Due  from  State  and  private  banks 

and  bankers  (see  schedule) , 

10  Banking  house $ 

11  Other  real  estate $ 

12  Furniture  and  fixtures  ..  $ 


1,327,473.88 
231.00 

50,000.00 


Liabilities. 


1  Capital  stock  paid  in 


81, 987. 
99, 93S. 


99 
61 


18  Current  expenses  and  taxes  paid  . . 

14  Premium  paid— on  bonds  for  cir- 
culation $ 
$  


-on  bonds  for  cir- 
Other  premiums 


15  Checks  and  other  cash  items  (see 
schedule) 


26, 442. 30 


2  Surplus  fund 

3  Unuivided  jirofits 


Dollars. 


4  Circulating  notes  received 

from  CJoujptroller 

Less  ain't  on  hand  and 
in  Treasury  for  redemp> 
tion 


10, 000. 
102. 


00 
17 


16  Excliauges  fur  clearing  house  . . . 

17  Bills  of  other  banks 


18  Fractional  paper  currency,  nickels, 

and  cents 

19  Specie,  viz : 

(lold  coin $30,865.00 

Gold  Treasury  certifi- 
cates (sec.  254,  Rev. 
Stat.) 

Gold  clearing-house 
certificates $40, 000. 00 

Silver  coin,  dollars, 
$1,200,  frac,  $3,616  .  .$15,  616. 00 

Silver  Treasury  certi- 
ficates (act  Feb'y  28, 
1878) 


3, 532.  19 

96, 073. 58 

4, 595. 00 

507.49 


5  State  bank  circulation  outstanding 

6  Dividends  unpaid 


400,000.00 

80,000.00 
4, 120. 63 


7  Individual    deposits 

subject  to  check  ...$1,191,490.50 

8  Deniau<i  certificates 

of  deposit 

9  Time  certificates    of 

deposit 

10  Certifieil  checks .... 

11  Cashier's  checks  out- 

standing       106,709.62 


4.5,000.00 
6,782.50 


12  Unite<l  States  deposits 

13  Deposits  of  the  U.  S.  disbursing 

officers 


14  Due  to  other  national  banks , 

15  Due  to  State  and  private  banks 

and  bankers 


20  Legal-tender  notes 

21  U.  S.  certificates  of  deposit   for 

legal-tender  notes  (sec.  5193,  Rev. 
Stat.) 

22  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  i)ercent  on 
circulation) 

23  Due  from  U.  S.  Ti'easurer  (other 

than  5  per  cent  redemption  fund) . 


Total. 


86,481.00 
76, 000. 00 


30, 000. 00 


2,250.00 


1,895,616.21 


16  Notes  and  bills  rediscounted. 

17  Bills  payable 


1,298,200.12 

46,586.39 
14, 926. 57 


Total. 


1,895,616.21 


I,  G.W. Marsh,  cashier  of  "The  Keystone  Nat.  Bank,  Philnlelphia,  Penn., "do  solemnly  swear  that 
the  above  statement  is  true,  to  the  best  of  my  knowledge  uud  b«jlief. 

Correct.-Attest:  ^'  "^'  ^^«««'  ^«*'^»^- 

Granvillk  B.  Haines, 
Louis  Drkka, 

&ULV&L  LUCAH, 

Directors. 


INVESTIGATION   OF   NATIONAL   BANKS. 


317 


State  of  Pennsylvania,  County  of  PhilacUlphia: 
Sworn  to  and  subscribed  before  me  this  19tliday  of  May,  1886. 
[SEAL.] 


John  "W.  Barron, 

Notary  Pv^lic. 


Must  be  acknowledged  before  anoflicer  having  an  ofliclal  seal.— See  act  approved  Feb.  26, 1881. 

SCHEDULES. 

Loans  and  discounts. 

On  paper  with  two  or  more  individual  or  firm  names $1, 19(;,  0.32. 26 

On  single-name  paper  (one  person  or  firm)  without  other  security 131, 441. 62 

On  mortgages  and  other  real-estate  security 

On  U.S. bonds  (demand  loans) 

On  other  stocks,  bonds,  etc.  (demand  loans) 

All  other  loans 

1,  327, 473.  83 

Included  in  the  above  are- 
Bad  debts  as  defined  in  section  5204,  Rev.  Stat $ 

Other  8usi)ended  and  overdue  paper 12,691.14 

Liabilities  of  directors  (individual  and  firm)  as  payers 62,828.60 

Dtte  from  approved  reserve  agents. 

Trade.<»man'8  Nat'l $55,474.36 

Hanover  "      26,513.63 

Checks  and  other  cash  items. 


Checks  and  drafts  in  this  city 

Internal-revenue  stamps 

Coupons 


$3, 532. 19 


Average  reserve  and  interest. — Average  reserve  for  last  30  day«  (in  bank  and  with  reserve  agents) 
was  26.66  per  cent  of  deposits  and  bai&  balance.  The  highest  late  of  interest  paid  by  the  bank  is  3 
percent. 


''  if 


4  S 


n 


m! 


i 


318 


INVESTIGATION  OF   NATIONAL   BANKS. 


Report  of  the  Keystone  National  Bank,  dated  August  1, 1887,  marked 
Exhibit  6: 

Exhibit  6--May  19,  1892. 

No.  of  bank,  2291. 

[Use  the  blank  lines  if  necessary,  but  do  not  erase  or  change  any  of  the  printed  items.] 

B^ort  of  the  condition  of  "  the  Keystone  National  Bank,"  at  Philadelphia,  in  the  State  of 
Penn.,  at  the  close  of  business  on  the  let  day  of  August,  1S87. 

Bb.  Ck. 


Resources. 


1  Loans  and  discounts  (see  schedule) . 

2  Overdrafts 

3  T7.  S.  bonds  to  secure  circulation 

(par  value),  3  per  cents 

4  U.  S.  bonds  to  secure  deposits  (par 

value) 

6  TJ.  S.  bonds  on  hand  (par  value)  . . . 

6  other  stocks,  bonds,  and  mortgages 

(see  schedule) , 

7  Due  from  approved  reserve  agents 

(see  schedule) 

8  Due  from  other  national  banks 

9  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10  Bauking  liouse 

11  Other  r»al  estate 

12  Furniture  and  fixtures $10, 000 

13  Current  exi>ense8  and  taxes  jMud  . . 

14  Premium  paid  on  Imnds  for  circu- 

lation, $  .  Other  premiums, 
$  

15  Checks  and  other  cash  items  (see 

schedule) 

16  Exchanges  for  clearing  house 

17  Bills  of  other  banks 

18  Fractional  paper  currency,  nickels, 

and  cents 

19  Si)ecie,  viz: 

Gold  coin $10,340 

Gold  treasury  certifi- 
cates (sec.  "254,  Rev. 
Stat.) 

Gold  clearing-house  cer- 
tificates...     30.000 

Silver  coin— dolls.,  9,000; 
frac.,  5,127 14,127 

Silver    treasury   certifi- 
cates (act  Feb'y  28, 
1878) 

20  Legal-tender  notes 

21  U.  8.  certificates  of  deposit   for 

legal-tender  notes  (sec.  5193,  Rev. 
Stat.) 

^  Redemption  fund  with  U.  S.  Treas- 
urer (not  more  than  5  per  cent, 
on  circulation) 

23  Due  from  U.  S.  Treasurer  (other 
than  5  per  cent  redemption  fund) . 

Total 


Dollars. 


1,303,193.27 
42L90 

40, 000. 00 


100,  505. 04 
80, 427. 70 

18,816.06 


10, 000. 00 
6, 497. 72 


Liabilities. 


1  Capital  stock  paid  in 


2  Surplus  fund 

3  Undivided  profits 


4  Circulating  notes  received 

firom  Comptroller 

Less  am't  on  hand  and 
in  Treasury  for  re- 
emption 


Dollars. 


400,000.00 

80, 000.  00 
17, 0915. 39 


5  State  bank  circulation  outstand- 
ing   


6  Dividends  unpaid 


3,  908. 41 

54, 546. 70 

2,860.00 

556.36 


7  Individiuil    dejwsits 

subject  to  check  . .  $1,138,329.72 

8  Demand   certificates 

of  deposit 

9  Time  certificates  of 

deposit 

10  Certified  checks  /. . . 

11  (Cashier's  checks  out- 

standing        105,585.97 


45. 000. 00 


938.50 


12  United  States  deposits 

13  Deposits  of  U.  S.  disbursing  offi- 

cers  


54,  467. 00 
93, 000. 00 


30,000.00 
2, 250. 00 


1,811,450.16 


14  Due  to  other  national  banks 

15  Due  to  State  and  private  banks 

and  bankers , 


1, 243, 915. 69 

18,246.16 
6, 256. 42 


16  Notes  and  bills  rediscounted. 

17  Bills  payable 


Total 


1,811,450.16 


I,  G.  W.  Marsh,  cashier  of  "  The  Keystone  Nat.  Bank,  Philadelphia,  Penn.,"  do  solemnly  swear  that 
the  above  statement  is  true  to  the  best  of  my  knowledge  and  belief. 
■,  G.  W.  Masse,  Gathier. 

Correct— Attest: 

Granville  B.  Haines, 
Samuel  Lucas, 
D.  P.  S.  Nichols, 

JHreetors. 


INVESTIGATION  OF   NATIONAL    BANKS.  319 

State  of  Pennsylvania,  County  of  Philadelphia : 

Sworn  to  and  subscribed  before  me  this  8th  day  of  August,  1887.  ^   ^       ^. 

rawAi  1  John  W.  Barron, 

^^^^'i  Notary  Public. 

Must  be  acknowledged  before  an  officer  having  an  official  seal.— See  act  approved  Feb.  26, 1881. 

SCHEDULES. 
Loans  and  discounts. 

On  pwjer  with  two  or  more  individual  or  firm  names $1. 167, 189. 32 

On  single-name  paper  (one  person  or  firm),  without  other  security 13b,  003. 85 

On  mortgages  and  other  real-estate  security 

On  U.  S.  bonds  (demand  loans) 

On  other  stocks,  bonds,  &c.  (demand  loans) 

All  other  loans 

1, 303, 193. 27 
Due  from  approved  reserve  agents. 

Tradesman's  N.Y ^S?iH? 

Hanover 32, 291.  hi 

Average  reserve  and  interest.— AvevAse  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  was 
25/y^  per  cent  of  deposits  and  bank  balance.  The  highest  rate  of  interest  paid  by  the  bank  is  3  per 
eeut. 


320 


INVESTIGATION   OF   NATIONAL   BANKS. 


r 


\~ 


Eeport  of  the  Keystone  National  Bank,  dated   October   5,  1887, 
marked  Exhibit  7: 

Exhibit  7— May  19,  1892. 

No.  of  bank,  2291. 

[XJBe  the  blank  lines  if  nccessarj-,  but  do  not  erase  or  change  any  of  the  printo^l  items.] 

Eeport  of  the  condition  of  the  Keystone  National  Bank,  at  Philadelphia,  in  the  State 
of  Pennsylvania,  at  the  close  of  business  on  the  5th  day  of  October,  1887. 

^R-  •  Cb. 


Resources. 


1  Loans  and  discounts  (see  schedule) . 

2  Overdrafts 

3  U.  S.  bonds  to  secure  circulation 

(par  value) 

4  IT.  !^.  bonds  to  secure  deposits  (par 

value)  ...* 

5  U.  S.  bonds  on  baud  (par  value) 

6  Other  stocks,  bonds,  and  mortgages 

(see  schedule) 


Dollars. 


7  Due  from  anproved  reserve  agents 

(see  schedule) 

8  Due  from  other  nationid  banks 

9  Due  from  State  and  private  banks 

and  bankers  (see  schedule) 

10  Banking  house $ 

11  Other  real  estate 

12  Furniture  and  fixtures.. 


13  Current  expenses  and  taxes  paid  . 

14  Premium  paid :  On  bonds  for  circu» 

lation,  $ ;  other  premiums, 


1,322,294.48 
1,  394. 82 

50, 000. 00 


85, 437. 21 
53, 115. 02 

27, 285. 39 


10,  000. 00 
14, 526. 27 


15  Checks  and  other  cash  items  (see 

schedule) 

16  Exchanges  for  clearing  hou^e 

17  Bills  of  other  banks 

18  Fractional  paper,  currency,  nickels, 

and  cents 

19  Specie,  viz: 

Grold  coin $26,000.00 

Gold  Treasury  certifi- 
cates (Sec.  254,  Kev. 
Stat.) 

Gold  clearing  -  house     • 
certificates 30, 000. 00 

Silver  coin,  dolls., 
14,000;  frac'l, 
4,880 18,880.00 

Silver  Treasury  certifi- 
cates (act  Feb'y  28, 
1878)  


5,  983. 36 

120,  6:J9.  01 

11,400.00 

286.47 


20  Legal-tender  notes 

21  U.  S.  certificates  of  deposit  for  le- 

gal-tender notes  (Sec.  5193,  Rev. 
Stat.) 

22  Redemption  fund  with  U.  S.  Treas- 

urer (not  more  than  5  per  cent 
on  circulation) 

23  Due  from  U.  S.  Treasurer  (other 

than  5  per  cent  redemption  fund) . 


Total 


74, 880,  00 
90, 120. 00 


20, 000. 00 
2,250.00 


1,889,612.03 


Liabilities. 


1  Capital  stock  paid  in 


2  Surplus  fund 

3  Undivided  profits. 


Dollars. 


4  Circulating  notes  re- 
ceived irom   C  o  m  p  - 

troller $ 

Less  am't  on  hand  and 
in  Treasury  for  re- 
demption . .' 


5  State  bank  circulation  oatstandinjr 

6  Dividends  unpaid 


7  Individual  deposits 

subject  to  chock  . .  .$1,114,133.09 

8  Demand     certificates 

of  deiKMiit 

9  Time  certificates   of 

deposit 

10  Cert ifieil  checks 

11  Cashier's  checks  out- 

standing      140,845.72 


400,000.00 


80,000.00 
30, 023. 66 


45, 000. 00 
844 


12  United  States  deposits 

13  Deposits  of  U.  S.  disbursing  officers 

14  Due  to  other  national  banks 

15  Due  to  State  and  private  banks 

and  bankers 


16  Notes  and  bills  re-discounted. 

17  Bills  payable 


1. 254, 978. 81 

6, 171.  36 
72, 594. 20 


Total 1,889,612.03 


I,  G.W.  Marsh,  cash'r  of  "  The  Keystone  National  Bank,  Philadelphia,  Penna.,"  do  solemnly  swear 
that  the  above  8tat«ment  is  true,  to  the  best  of  my  knowledge  and  belief. 

-,        .     .  ^^    ^  G.  W.  Marsh,  Cashier. 

Correct— Attest : 

Ghanville  B.  Hainbs, 
D.  P.  S.  Nichols, 
Ht.  Van  Beil, 

State  of  PK?rNsyi,VANiA,  County  of  Philadelphm: 
Sworn  to  and  subscribed  before  mo  this  thirteenth  day  of  October.  1887. 
[8BAL.]  John  W.  Barron, 

Notary  Public. 

Mnst  be  acknowletlged  before  an  official  having  an  official  seal.    See  act  approved  Feb.  26, 1881. 


INVESTIGATION    OF   NATIONAL    BANKS. 


321 


SCHEDULES. 

Loans  and  disccunts. 

On  paper  with  two  or  more  individual  or  firm  names $1,170,358.85 

On  single-name  paper  (one  person  or  firm)  without  other  security 151,935.63 

On  mortgages  and  other  real  estate  security 

On  U.S. bonds  (demand  loans) 

On  other  stocks,  bonds,  et<5.  (demand  loans) 

AH  other  loans 


Included  in  the  above  are — 

Bad  debts  as  defined  in  section  5204,  Rev.  Stat 

Other  suspended  and  overdue  paper 

Liabilities  of  directors  (individual  and  firm)  as  payers. 


1, 322,  294. 48 


31, 325. 47 
58, 124. 53 


Due  from  approved  reserve  agents. 

Tradesmen's  Nat.  B'k 64,182.31 

Hanover  Nat.  B'k 21,254.90 

Checks  and  other  cash  items. 


•■1,} 
I  j 


Checks  and  drafts  on  banks,  etc.,  in 

this  city 

Internal-revenue  stamps 

Coupons 


$5,983.36 


U.  S.  refunding  certificates 


Average  reserve  and  interest. — Average  reserve  for  last  30  days  (in  bank  and  with  reserve  agents)  was 
25.34  per  cent  of  deposits  and  bank  balance.    The  highest  rate  of  interest  paid  by  the  bank  is  3  per  cent. 

A  report  of  tlie  dividends  and  earnings  of  the  Keystone  National 
Bank  for  six  months  ending  April  30,  1888,  marked  Exhibit  8: 

Exhibit  8. 

No.  of  bank,  2201.    No.  of  div.,  5. 

Peport  of  earnings  and  dividends  of  the  Keystone  National  Bank,  located  at  Philadelphia, 
in  the  State  of  Penna.,  for  the  period  of  6  months  ending  April  30,1888.  Declared 
May  1,  1888.    Payable  May  1,  1888. 

1.  Gross  earnings  since  last  report ^31,  307. 58 

2.  Other  protits  realized  since  last  report 

Total  profits  of  last  six  months  to  be  accounted  for  other  than 

surplus  fund 31, 307. 58 

Deduct — 

3.  Premiums  on  bonds  charged  off  since  last  report 

4.  Losses,  decrease  of  values,  bad  debts,  &c.,  charged 

off  since  last  report 

5.  Expenses  an<l  taxes  charged  off  and  interest  paid  since 

last  report $20,065.47      20,0(>5.47 

*6.  Net  earnings  and  protits  of  past  six  months 11,  242. 11 

Add— 

7.  Undivided  profits  brought  forward  from  last  report 20, 363. 42 

8.  Total  of  all  profits : 31,605.53 

Disposition: 

9.  Carried  to  surplus  fund  (not  less  than  one-tenth  of 

item  6,  unless  surplus  is  already  20  per  cent  of  cap- 
ital)   

10.  Dividend  of  3  per  cent  (on  capital  $400,000) 12, 000. 00 

11.  Amount  of  net  profits  undivided,  to  be  carried  for- 

ward        19,605.53 

Deduct — 

12.  Amount  withdrawn  from  surplus 


Total  net  profits  (same  as  item  8)  accounted  for 31,  605. 53 


*  In  case  the  loss  exceeds  the  profits  for  the  six  months,  the  amount  should  be  en- 
tered in  red  ink. 

3792 ^21 


322  INVESTIGATION   OF    NATIONAL    BANKS. 

13.  Total  profits  as  national  bank  Bince  organization  (less 

oxpensos,  preniinnis,  losses,  &c.) $154,  270.  .%0 

14.  Add  profits  of  old  organization  at  date  of  conversion. . .      11, 056. 03 

f  la^  335. 53 

15.  Total  dividends  since  organization  as  national  bank 6.5,  730. 00 

16.  Total  surplus  fund  proper  at  date  of  this  report 80,  000.  00 

17.  Total  other  profits  on  hand  (same  as  item  11  or  this  report)      10,  605. 53     165,  iiSn.  .53 

*18.  Net  profits  since  last  report  (same  as  item  6),  $11,242.11. 

State  of  Pknna., 

County  of  Phila.: 
If  Gideon  W.  Marsh,  cashier  of  the  above-named  bank,  do  solemnly  swear  that  the 
above  statement  is  true  to  the  best  of  my  knowledge  and  belief. 

[seal.]  G.  W.  Mak8H. 

Cdshier, 
Sworn  to  and  subscribed  before  me  this  9th  day  of  August,  1888. 
[seal.]  John  W.  Bakuon, 

JVo/ary  r»hHc. 

Report  of  the  dividends  and  earnings  of  the  Keystone  ^National  Bank, 
dated  Oct.  31, 1888,  marked  Exhibit  9: 

Exhibit  9. 

No.  of  bank,  2291.     No.  of  div.,  6. 

JReport  of  earnings  and  dividends  of  the  Keystone  National  Hank,  located  at  Philadelphia, 
in  the  State  of  Penna.,  for  the  period  of  six  months  ending  Oct.  31^  1888.  Declared  Xov. 
1,  1888.     Payable  Nov.  1,  1888. 

1.  Gross  earnings  since  last  rej>ort $34, 613. 80 

2.  Other  profits  realized  since  last  report 

Total  profits  of  last  six  months  to  be  accounted  for  other  than 

surplus  fund 34,613.80 

Deduct — 

3.  Premium  on  bonds  charged  off  since  last  report 

4.  Losses,  decrease  of  values,  bad  deb'ts,  &c.,  charged  off 

since  last  report 

5.  Expenses  and  taxes  charged  off  and  interest  paid  since 

lastreport $14,865.97 

14, 865. 97 

*6.  Net  earnings  and  profits  of  past  six  months 19, 747. 83 

Add— 

7.  Undivided  profits  brought  forward  from  last  report 19, 605. 53 

8.  Total  of  all  profits 39,353.36 

Disposition — 

9.  Carried  to  surplus  fund  (not  less  than  one-tenth  of 
item  6,  unless  surplus  is  already  20  per  cent  of 
capital) 

10.  Dividend  of  3  per  cent  (on  capital  $4(X),000) 12, 000. 00 

11.  Amount  of  net  profits  undivided,  to  be  carried  for- 

ward        27,353.36 

Deduct — 

12.  Amount  withdrawn  from  surplus 

Total  net  profits  (same  as  item  8)  accounted  for 39. 353. 36 

13.  Total  profits  as  national  bank  since  organization  (less 

expenses,  premiums,  losses,  etc. ) 174, 027. 33 

14.  Add  profits  of  old  organization  at  date  of  conversion 11, 056. 03 

185,083.36 

15.  Total  dividends  since  organization  as  national  bank 77,  730. 00 

16.  Total  surplus  fund  proper  at  date  of  this  report 80, 000. 00 

17.  Total  other  profits  on  hand  (same  as  item  11  of  this  report)      27, 353. 36 

185, 083. 36 

*18.  Net  profits  since  last  report  (same  as  item  6),  $19,747.83. 

^lu  case  the  loss  exceeds  the  profits  for  the  six  months,  the  amount  should  be  entered 
in  red  ink. 


INVESTIGATION   OF   NATIONAL   BANKS. 


323 


State  of  Pknna., 

County  of  Philadelphia: 

I,  G.  W.  Marsh,  cashier  of  the  above-named  bank,  do  solemnly  swear  that,  the  above 
statement  is  true  to  the  best  of  my  knowledge  and  belief. 
[SEAL.]  G.  W.  Marsh, 

Cashier. 
Sworn  to  and  subscribed  before  me  this  16th  day  of  February,  1889. 
[SEAL.)  John  W.  Barron, 

Notary  Public. 

TESTIMONY  OF  EDWARD  S.  LACEY— Recalled. 

Edward  S.  Lacey  recalled  and  further  examined. 
By  the  Chairman: 

Q.  Have  you  here  this  morning  copies  of  letters  which  were  ad- 
dressed to  the  gentleman  in  charge  of  the  correspondence  in  your  Bu- 
reau?— A.  I  have. 

Q.  Will  you  please  read  them! 

Letters  produced  and  read. 

Letter,  dated  April  22, 1892,  to  B.  Z.  Perkins,  chief  of  the  organiza- 
tion division: 

Exhibit  10. 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  April  22.  1892. 
Mr.  E.  Z.  Perkins, 

Chief,  Organizatimi  Division: 

Sir:  You  will  proceed  with  all  possible  dispatch  to  prepare  verified  copies  of  all 
<(»rrespoudence  and  documents  in  your  division  relating  to  the  Keystone  National 
Bank,  covering  its  organization  and  its  several  increases  of  capital,  as  well  as  all 
other  matters  in  connection  with  said  bank. 

•       Very  respectfully,  £.  S.  Lacey, 

Comptroller. 

Letter  dated  April  22, 1892,  to  G.  M.  Coffin,  chief  of  the  division  of 
reports. 

Exhibit  11. 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

„     «    „    ^  Washington,  D.  C,  April  22,  1892. 

Mr.  G.  M.  Coffin,  ' 

Chief,  Division  of  Reports: 

Sir:  You  will  proceed  with  all  possible  despatch  to  prepare  verified  copies  of  all 
reports  of  condition  and  all  reports  made  by  examiners  in  connection  with  the  Key- 
stone National  Bank  of  Philadelphia,  from  januarv  1,  1886,  to  July  15.  1891. 

Also  of  all  letters  to  and  from  this  oflice  relating  to  said  bank,  to  the  examiner  and 
to  the  receiver  thereof,  from  Januarv  1,  1886,  to  July  15,  1891. 

Very  respectfuUy,  •  '  e.  S.  Lacy. 

,  Comptroller. 

Letter  dated  April  22,  1892,  addressed  to  W.  W.  Eldridge,  chief  of 
the  division  of  issue. 

Exhibit  12. 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

\f,.   w    w    V  Washington,  D.  C,  April  22,  1892. 

Mr.  W.  W.  Eldridge, 

Chief,  Division  of  Issue : 

Sir:  You  win  prepare  with  all  possible  despatch  verified  copies  of  all  letters  to 
ana  irom  this  oftice  and  of  all  documents  received  relating  to  the  Kevstone  National 

1  i^'"^^^t"i  *VJ'?1!^'?  *"''**^  ^^^^*^  1, 1874,  to  September  1,1875;  also  from  January 
1,  1886,  to  July  15, 1891.  ^ 

Very  respectfully,  £.  g.  Lacey, 

Comptroller, 


•I 


V 

r 


'i 


324 


INVESTIGATION   OF   NATIONAL   BANKS. 


Letter  dated  April  22, 1892,  addressed  to  T.  O.  Ebaugh,  general  book- 
keeper. 

Exhibit  13. 


Mr.  T.  O.  Ebaugh, 

General  Bookkeeper: 


Treasury  Department, 
Office  of  the  Comptrolf.eu  of  the  Currency, 

Washington,  D.  C,  April  22,  1892, 


Sir:  You  will  prepare  a  complete  transcript  of  the  accounts  on  your  books  relating 
the  affairs  of  the  Keystone  National  Bank  of  Philadelphia  from  its  organization 


to  the  present  date. 

Very  respectfully, 


E.  S.  Lacey, 

Comptroller, 


Letter  dated  April  22, 1892,  addressed  to  C.  J.  Stoddard,  iu  charge 
of  insolvent  banks. 

Exhibit  14. 

Treasury  Department, 
Office  of  the  Comptroller  of  the  Currency, 

Washington,  D.  C,  April  22,  1892. 

Mr.  C.  J.  Stoddard, 

[n  Charge  of  Insolvent  Banks: 

Sir:  You  will  proceed  with  all  i)ORsil»le  despatch  to  prepare  rerificd  ro]des  of  all 
letters  to  an<l  from  this  office  relating  to  the  Keystone  National  Bank  of  Philadel- 
phia, the  examiner  and  receiver  of  said  bank,  from  January  1,  1888,  to  July  15, 1891. 

Also  copies  of  the  first  report  made  b^y  the  receiver  of  said  bank,  showing  what 
assets  came  into  his  hands,  and  their  condition  at  that  time. 

Also  copies  of  all  correspondence  to  and  from  the  receiver  and  his  attorney,  re- 
lating to  the  assets  and  business  of  the  bank,  and  showing  the  present  contlition  of 
the  trust. 

Very  respectfully,  ^  ^  ^^^^^ 

Comptroller. 

I  also  verbally  instructed  Mr.  T.  B.  Kane,  ray  private  secretary,  to 
have  verifted  copies  prepared  of  all  correspondence  to  and  from  the  office 
with  the  Keystone  National  Bank,  its  receiver,  and  the  national  bank 
examiner,  Mr.  Drew,  during  the  entire  period. 

Q.  In  response  to  the  written  and  verbal  instructions  to  which  you 
have  testified,  did  you  receive  the  (correspondence ?~A.  All  the  gentle- 
men named  have  sent  me  verified  copies  of  the  various  letters  and  docu- 
ments whicli  I  have  submitted  to  the  committee. 

Q.  Have  all  the  letters  and  documents  thus  furnished  you  been  produced 
to  the  committee t— A.  They  have;  that  is^  the  correspondence  cov- 
eied  by  these  letters. 

Q.  I  observe  that  one  of  the  letters  called  for  copies  of  all  letters  to 
and  from  the  receiver  by  attorney.  With  reference  to  that,  is  it  not  a 
fact  that,  after  consultation,  it  was  agreed  that  some  examination 
should  be  made  of  that  correspondence  before  copies  were  prepared!— 
A.  It  was  so  arranged,  and  the  Hon.  W.  H.  Gate,  a  member  of  this 
committee,  appeared  at  theoftice  and  T  detailed  Mr.  Stoddard,  and  they 
together  carefully  went  through  all  the  correspondence  covered  by  that 
paragraph  in  the  letter,  and  he  selected  such  as  he  desires!  to  have 
copies  certified  to  the  committee;  and  Mr.  Stoddard  will  be  able  to  say 
whether  they  have  been  certified  and  produced.    I  understand  they 

have. 

The  Chairman  (to  the  witness).  If  you  will  step  aside  we  will  dispose 
of  these  other  gentlemen,  so  that  they  can  go  back  to  the  office. 


INVESTIGATION   OF   NATIONAL   BANKS. 


TESTIMONY  OF  £.  Z.  PERKINS. 


325 


E.  Z.  Perkins  sworn  and  examined. 

By  tlie  Chairman  : 
Q.  Did  you  receive  the  letter,  being  Exhibit  10  of  this  date,  addressed 
to  you  by  the  Comptroller,  dated  April  22,  1892!— A.  I  did;   this  he 

has  read. 

Q.  Did  you  prepare  copies  of  the  correspondence  and  documents 
called  for  by  that  letter? — A.  I  did. 

Q.  You  made  a  complete  transcript  of  the  letters  and  documents  in 
your  division! — A.  I  did. 

Q.  They  were  delivered  by  you  to  the  Comptroller !— A.  They  were 
taken  by  me  to  him  personally. 

TESTIMONY  OF  G.  M.  COFFIN. 

G.  M.  Coffin  sworn  and  examined. 

By  the  Chairman  : 

Q.  Did  you  receive  a  letter  from  the  Comptroller  which'  has  been  read 
here  this  morning,  being  Exhibit  11,  of  this  date,  dated  April  22, 
1892!— A.  I  did. 

Q.  Did  you  prepare  the  copies  called  for  by  that  letter! — ^A.  I  did. 

Q.  And  did  you  make  copies  of  all  reports  called  for  in  that  letter! — 
A.  Yes,  sir;  a  very  thorough  search  was  made  and  copies  of  all  such 
letters  were  carefully  prejiared. 

Q,  And  did  you  deliver  them  to  the  Comptroller! — A.  I  delivered 
them  to  Mr.  Stoddard,  under  the  Comptroller's  direction. 

TESTIMONY  OF  W.  W.  ELDEIDGE. 

W.  W.  Eldridge,  sworn  and  examined. 

By  the  Chairman  : 

Q.  Did  you  receive  a  letter  addressed  to  you  by  the  Comptroller 
under  date  April  22, 1892,  being  Exhibit  12,  of  this  date,  calling  for  cer- 
tain copies  of  papers  ! — ^A.  I  did. 

Q.  Did  you  make  an  examination  of  these  papers  and  the  copies  of 
them ! — A.  I  miule  copies  of  everything  in  my  division,  with  one  ex- 
ception. After  I  received  that  order  I  conferred  with  Mr.  Lacey  with 
regard  to  the  necessity  of  copying  the  voluminous  receipts  for  currency, 
which  is  merely  inepared  in  our  office  and  sent  out  and  receipt (*d  for  by 
the  cashier,  without  letter  of  transmittal.  We  did  not  consider  it  a  part 
of  the  corresixmdence,  but  as  your  letter  calls  for  the  correspondence 
and  documents  I  thought  it  might  be  considered  a  document.  It  is  a 
duplicate  of  the  statement  made  by  the  general  bookkeeper,  and  every 
item  furnished  in  these  papers  would  be  furnished  by  him. 

Q.  They  are  vouchers  for  currency  which  had  been  delivered  by  the 
Treasury  Department  to  the  banks! — A.  Yes,  sir. 

Q.  You  have  made  ('opies  of  every  other  paper! — A.  Yes,  sir. 

Q.  And  those  have  been  delivered  by  you  to  the  Comptroller! — A. 
They  were  delivered  to  his  private  secretary,  Mr.  Kane,  for  certification. 


I 


n 


S2C, 


IN>'KSTIGATION   OF    NATIONAL    HANKS. 


TESTIMONY  OF  T.  0.  EBOLB. 


T.  O.  Ebold,  swoni  and  examined. 

By  the  Chairman: 

Q.  Did  you  receive  a  letter  addressed  to  you  by  the  Comptioller 
uuder  date  of  April  22,  1892,  and  being  Exhibit  13,  of  this  date,  call- 
ing for  transcii|»t  of  accounts? — A.  I  did. 

Q.  Did  you  jirepari-  the  accounts  <'alled  for  by  that  transcript! — A.  I 
did.    I  made  a  statement  of  everything  expressed  in  the  inquiry. 

Q.  And  did  you  furnish  them  to  the  Comptroller*— A.  1  gave  them 

to  Mr.  Kane. 

Q.  What  you  gave  him  was  a  complete  transcript,  as  called  for  by 
thatletterf— A.  Yes,  sir;  bonds  and  circulation.  A  transcript  of  all 
the  account. 

TESTIMONY  OF  T.  B.  KANE. 

Mr.  T.  B.  Kane,  sworn  and  examined. 

By  the  Chairman  : 

Q.  You  are  private  secretary  to  the  Comptroller  of  the  Currency!— 
A.  I  am. 

Q.  Did  you  receive  from  him  instructions  to  prepare  certain  copies 
of  papers  on  file  in  his  office  in  reference  to  this  investigation  f— A.  I 

did.  .      - 

Q.  You  have  heard  him  testify  as  to  those  instructions  this  morning? 

— A.  Yes,  sir. 

Q.  Did  you  ])repare  the  copies  ? — A.  I  prepared  some  and  had  others 
prepared  by  other  clerks. 

Q.  Under  your  supervision? — A.  Yes,  sir. 

Q.  They  were  certified  and  delivered  to  the  Comptroller!— A.  Yes, 

sir. 
Q.  Mr.  Eldridge  has  testified  that  he  gave  you  certain  papers  for 

certification! — A.  Yes,  sir. 

Q.  Did  you  certify  them!— A.  I  had  them  certified. 

Q.  Under  your  supervision? — A.  Yes,  sir. 

Q.  Mr.  Eb'augh  has  testified  to  delivering  certain  papers  to  you?— A. 
Y'es  sir 

Q.  Were  they  certified  and  delivered  to  the  Comptroller!— A.  Yes, 

sir 

Q.  You  furnished  to  the  Comptroller  all  the  papers  that  came  to  you 
-from  Messrs.  Hbaugh  and  Eldridge  and  all  that  were  called  for!— A. 
Yes,  sir. 


TESTIMONY  OF  EDWAED  S.  LACEY— Continued. 

Mr.  Edward  S.  Lacey,  examination  resumed: 

By  the  Chairman  : 

Q.  Have  you  here  this  morning  a  copy  of  the  rejiort  of  the  examina- 
tion of  Mr.  Drew  of  the  condition  of  the  bank  at  the  time  he  took  pos- 
session!-A.  1  transmitted  it  to  the  chairman  yesterday,  and  it  is  with 
these  papers;  it  is  the  last  one. 

Q.  Is  that  the  document  [handing  pai)er  to  wituessj!— A.  This  paper 


INVESTIGATION    OF    NATIONAL    BANKS. 


327 


1  havT  in  my  hand  is  a  copy  of  the  original  schedule  of  assets  of  the 
Keyst/Oue  National  Bank  of  Philadelphia,  made  by  Mr.  Drew,  national 
bank  examiner,  showing  the  assets  coming  into  his  hands  on  March 


20,  1891. 


(Witness  produced  a  document  which  is  put  in  evidence,  marked 
Exhibit  15,  of  this  date.) 


■')i 


Exhibit  15. 

Philadelphia,  Pa.,  June  2, 1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,  Washington,  D.  C. : 

Sir:  I  forward  this  day  to  your  office  schedules  of  assets  of  Keystone  Nat.  Bank 
and  receipt  for  assets  turned  over  by  me  to  the  receiver. 
Very  respectfully, 

W.  P.  Drew, 
Nat.  Bank  Examiner. 


Liit  of  schedules. 


A.  Overdrafts. 

B.  Bills  discounted. 

C.  Due  by  banks. 

D.  Cash  items  in  deposits  received  March 

20th. 

E.  Country  checks  in  deposits. 

F.  Cash  on  hand  when  bank  closed. 

G.  Cash  items. 

H.  Due  bills  outstanding. 
I.    Deposits  in  Am.  3-20. 
J.   Individuals'  deposits. 
K.  Due  to  banks. 
L.   Certificate  of  deposits. 
M.  Amt.   due  by   banks    collection   ac- 
count. 


N.  Amt.  due  by  banks  account  B.  D. 

O.  Amt.  collections  paid. 

P.  Amt.  overpaid  by  banks. 

Q.  Overdrafts  paid. 

R.  Bills  discounted  paid. 

S.  Received  from  banks. 

T.  Amt.  due  by  banks. 

U.  Returned  items. 

V.  Collections  paid. 

W.OffsettsouB.  D. 

X.  Expenditures. 

Y.  New  York  drafts  outstanding. 


Amounts  charged  to  hanks. 


A8heville,N.C 

Batavia,N.T 

Baltimore,  Md 

Boston,  Mass 

Camden,  N.J 

Chester,  Pa 

Chicago,  111 

Frankford,  Phila 

(Jermantown,  Philn 

Hanisburg,  Pa 

Integrity  T.  Ins.  and  T.  Co.,  Phila. 

I^ancaster,  Pa 

Miinayunk,  Phila 

Media,  Pa 

Northwestern  Nat.  Bk.,  Phila 

Pottsville,  Pa 

Pottstown,  Pa 

lii-adiiig,  Pa 

Ri«limond,  Va * 

Pittsburg,  Pa !..i!"!I 

Scranton,  Pa *".  !!!!!!!!*! 

Washington,  D. C. . . . .......! ..'*'.'. 

Wheeling,  \V.  Va 

West  Phila.  Bk 

Westchester,  Pa 

Wilmington,  Del 

Norri.stowu,  Pa '.'..'.'.'. 

Tradesmen's  Trust  Co .'. 

Chase.N.Y 

Industrial  Trust  Co '..'.'.'. '. '.....'. 

Atlantic  City 

Doylesto wn,'  Pa  . . . . !  1 .  * ! 


Western  Carolina  Bank. . . . 

Bank  of  Batavia 

Citizens'  Nat.  Bank 

Nat.  Bank  of  Commerce  .  • . 

Nat.  State  Bank 

Del.  Co.  Nat.  Bank 

Fort  Dearborn  Nat.  Bank  . . 

2nd  Nat.  Bank 

Nat.  Bank  of  Grermantown. 
First  Nat.  Bank 


Reed,  McGran  &.  Co. 

Manayunk  Bk 

First  Nat.  Bk 


SafeDep.Bk 

Nat.  Iron  Bk 

Keystone  Nat.  Bk . . 

First  Nat.  Bk 

M.  &  M.Nat. Bk... 

ThirdNat.Bk 

Crane,  Parris  &  Co. 
German  Bk 


Farmers'  Nat.  Bk . 

Union  Nat.  Bk 

First  Nat.  Bk 


A.  C.  Nat.  Bk 

Doylestown  Nat.  Bk. 


$103. 37 

313.01 

161. 76 

2, 153. 19 

2, 914. 33 

263.25 

8, 005. 51 

203.94 

958.66 

239. 50 

26.00 
817. 63 

96.25 
340.22 
7.50 
119, 01 
103. 00 
207.  52 

62.90 
195.00 

87.15 

116. 10 

5.00 

219.50 

19.90 
466.29 
368.29 
443. 42 
971.  83 

66.00 

25.00 

31.03 


■20,355.86 


328 


INVESTIGATION   OF    NATIONAT.    BANKS. 


Overdrafts  from  Schedule  A. 


Arthur,  R.  A $149.99 

Askiii,  H 331.00 

Auiberlv,  Geo 3.98 

Briuly,  H.J 1,287,71 

Bardslcv,  Jiio 34, 088. 52 

Batf('rsi»y,  J .  M .05 

BaiTou,  J  no 150. 78 

BiaWford,  J.M 4.00 

Bearh  House 4,  879. 42 

Billon,  C.  K 42.55 

Bo»l>vHbelI,  O.  C X.li) 

Brown,  II W8 181.00 

Brown,  rhas 27.  G9 

Bowman,  H.  L.,.jr 18.30 

BiickluMstor,  Fauuie 4.  .50 

Biirke,  P.C .79 

Biin^au  Car  Co.  No.  1 4,iK)0.00 

Crawfonl,  i..  F 2.  72 

Catharine,  J.  W 23. 25 

Cams,  Koht 1,  4(»7. 33 

Canliv,  (ieo 2.01 

Col  1  u-r,  Sara li  E 2:^.  49 

Calhonn,  Wni 254. 89 

Cnilnni.  li.  S .91 

Cnniniinojs,  G.E 39.32 

Cruniji,  Sarah  R 1, 198. 85 

Crump,  H.J.  &  G.R 7,6:^1.3:^ 

Cnini]»,  Jno 3,772.94 


Davis,  Kdw.T 

Devon  inn 

DenoI.i,R.H  ... 

Dukson,  Jas 

Ellis,  H.C 

Greer,  .I.N 

Gertih^,  Fred 

Grimth,AnnaE  . 
Goldberg,  B.  M  . . 
Harrison,  Jos.  S.. 
Hanuington,  E.  S 
Harvey,  Geo.  L  .. 
Harris,  J.  Smith 


3, 204. 32 

67,9<i 

3.90 

40. 27 

5.70 

499.37 

31. 13 

30.30 

152.05 

9.60 

17.35 

1.00 

5.00 

Haines,  C.C 6,078.75 


Herdil,  F.L 

Henlings,  \Vm.  H , . 

Hoyt,S.C 

Hoor,R.C.,  &  Co 

Hunmiel,  A.  L 

Jackson  &  Co.,  W.  J.,  agts. 

Jones,  W.  B 

Krager,  R.  L 

Knuut'&Co.,  F.C 

Kennedy,  M 

Kerbaugh,  J.F 

Kel8ey,H.W 

Kennedy,  Jacob 


270. 53 

38.80 

134.61 

1.18 

4.90 

1,210.68 

150.00 

11.82 

39.32 

3.30 

222.47 

240.86 

3.05 


Keni,H.G $1.80 

Kimnev,  AdaC 20.00 

Kyle,  Jno.  M 875. 29 

Lee,  Hattie  1 1.00 

Longaere,  I.  D .23 

Longaker,  A.  M 4.51 

Lt>wry,  P .05 

LesleV,  E.  W 21.  77 

Lowrv,  A.  A 44. S5 

Lucas,  L.  C,  est 10,  359.  29 

Lucas,  M.  Eliz 11,744.94 

Luras,  Samuel 'Mi.  03 

Ln<aK,  Mrs.  J .  C  5,  imi  9S 

Lvnrh,  Anthony 1.04 

Ma.Af'ee,  J.  B. .' 2.  0.55. 82 

MacBiide.  Mrs.  J.  \V 9. 07 

MeConmll,  \Vm 2.84 

MrCiladr,  Mary 21.  <K) 

McKinlev,  J.  S 752.84 

M«(;owan,A.W 4.00 

Matthews,  W.  W .75 

M«^rriman,  E.  C 676. 14 

Miller,  J 70.  «5 

Mitrhell,  \V.  K 20.  46 

Morgan  Bros 28.74 

Moore,  J.  A (M3. 34 

Mooi>e,  C.  H  62.  15 

Moon,  Wm.  H 58.  .50 

M umjier,  M.  A 535.  'ATt 

Nolan  &  Bros 19. 80 

O'Donm-ll,  E 8().  0<» 

H  to  O  Ledger  Pettv  Overdra Its  2.  71^5. 5« 

Pattison,  J.  B *. 46. 19 

I'a tt on,  Ed  w.  W 2, 1 46.  26 

Patton,LP WJ1.80 

Preston,  G.  R.,  jr 1.  75 

Ridley  Building  Association  ..  378.25 

Shaw,W.F 2:^.96 

Sargent,  W.,  jr .  5<j 

Stockton,  VV.  A 1. 00 

The  Backus  Portable  Heating 

Co 4.67 

Thome,  E.W 9.84 

linger,  A 14.  76 

Vivo,  Joss 49. 50 

<'Vineland" 46.82 

Wanamaker,  Jno.  Per 334. 36 

Wanamaker, M.  B 4,929.98 

Walker,  W 1.85 

Walker,  R.H 13.42 

Wenrick  A.  K  , 5. 29 

Petty  account  P  to"  Z  Ledger*. '.  12, 938!  18 


131,002.14 


INVESTIGATION    OF   NATIONAL    BANKS. 


a29 


Keystone  National  Bank,  rhiladelphia,  Pa.     Bills  discounted,  being  part  of  Schedule  B 

of  bills  receivable  receipted  for  by  receiver. 


E.  L.  Tunis  &  Co.,  Balto. . . 

.J.  A.  Floersch  &  Co., 
Nashville. 

H.  VanBeil.N.Y 

Kirk  Johnson  &.  Co.,  Lan- 
caster. 

Sanil.  S.  Dager,  Camden . . . 

G.  B.  Aldneh,  Lockport, 
N.  Y. 

Ephriani  Young 

J.  H.  Reigle 

Lewis  U.AV^iley 

Win.  Calhoun 

Jno.  T.  Simmons  et  al, 
Wilmingt. 

Masher  &  Bro.,  Utica 

Geo.H.Kobler 

Thos.  Bennett 

H.  Van  Beil  &,  Co 

Araan  &  Bro 

Robt.  M.Wiley 

Kirk,  Johnson  &  Co.,  Lan- 
caster. 

B.  Frank  Cooling 

Pat'k  O'Neill 

The    March    Brownback 

Stove  Co.,  Nonistown. 

W.  H.  Mayer 

D©: , 

Robt.  Crissey 

A.  G.  C.  Cramer 

Robt.  Cams 

Henry  Zane 

Thos.  K.  Warman 

Martin  Bnrke 

Wilson  E.  Allen 

T.  Hudson,  Troy 

C.  Carpenter  .. .'. 

Joseph  S.  Harrison 


Mich'l  Meagher 

Jno.  McMenamin . . . 

H.  B.  Driver 

Henry  P.  Schraeder 

W.  J.  Simmons 

Martin  Wilson 

B.K.Esler 


Jacob  Hartman 

Hugh  Graham 

Saml.  M.  Kalin j 

Kirk,  Johnson  &.  Co.,  Lan- 
caster. 
T.  M.  Hulett,  Pottsville. . . 

AVni.  K.  Mc(;ieUan 

Jno.  McCullough 

S.  C.  Small  &  Co 

Con  &.  Sons 

Peter  A .  ( Jood 

Jno.F.Zibley 

John  B.Allen    

Chas.  R.  Colwell 


Wanamaker  &  Brown   . . . 

Henry  Van  Beil  &  Co , 

Sea  dirt  Land  and  Impv. 
Co.  *^ 

Ephriani  Young 

Wm.  W.Wallace 

Mcllvain  <fe  Co 

Rogers,  Jones  &  Moore, 
Macon. 

W.  J,  Jackson  &  Co 

Henry  Baunner,  jr 

Wm.M.  Stuart, 

Isaac  H.  Evans,  Bryn 
Mawr. 

E.  D.Miller 

TIios.  E.  Warman 

Hugh  ( Jrahani 

Kirk,  J(»hn8oii  &  Co.,  Lan- 
caster. 

J.  A.  Floerch  &Co.,  Nash- 
ville. 


A.  Falkenau 

T.  J.  Dunn  &  Co. 


H.  Van  Beil 

H.  W.  Gray  H.  W.  Gray 


R.  Woods 

J.  V.  Portuondo 


Ephriain  Young . , 
Kyle,  Berry  &  Co . 
R<)bt.  "M.  AViley  . . 
Geo.  L.  Harvey.., 
John  J.  Pyle 


T.J.  Dunn<fcCo 

McLear  &  Kendall 

H.  Van  Beil  &  Co 

R.  Q.  Gibbon 

Central  Market  Co 

H.  W.  Gray,  Shomaoker 
Piano  Co. 

Jos.  N.  Cooling 

Chas.  O'Neill 

Jas.  Dickson 


Jas.  R,  White,  mangr  . . . 

do T..... 

C.  H.  Kendrick 

J.  G.  Ramsdell 

Robt.  Cams 

Central  Market  Co 

H.  H.  Yard 

J.  Burke 

H.H.  Yard 

Wilmington  Dental  Co. . 

J.  A.  Wilson 

Joseph  S.  Harrison,  Jno. 

Casey. 

August  Stang 

Henry  McHugh 

Jno.  M.  Driver 

Jno.  L.  Galloway 

W.J.  Simmons 

W.  A.  Geary 

Philada.  Towel  Supply 

&  L.  Ck). 

H.  H.  Moore ; . 

Hugh  Graham  Son 

SaniLM.Kahn 

H.  W.  Gray,  Schomacker 

Piano  Co. 

W.  H.  Boner  <fc  Co 

R.  W.  McClellau 

Jno.  Gret^r 

D.andJ.C.Noblit&Co. 

Chas.C.Torr 

McLear  &  Kendall 

John  J.  Pyle 

W.T.Wilson 

Laura  R.  Colwell,  Jno. 

Hunter,  agt. 
Wanaiuaker  &,  Brown  . . 

H.Van  Beil  .S.  Co 

Sea  Girt  Land  and  Impv. 

Co. 

Ephriam  Young 

Central  Market  Co 

Ephriam  Young 

T.J.  Dunn  &  Co 


Due  Mar.  14 
16 

18 
19 

18 
18 

20 
20 


11 
19 

20 
21 
21 
21 
21 


22 
22 


23 
23 


R.  A.  Jackson 

Geo.  W.  Clothier 

Kyle,  Berry  &  Co.,  limtd 
John  Greer 


Richd.  Miller 

H.H.  Yard 

Hugh  Graham  &  Son  . . 
H.W.Gray,  Schomacker 

Piano  Co. 
T.  J.  Dunn  &  Co 


Mar. 


24 

24 
25 


26 


$1, 500. 00 
255.00 

500.00 
243.00 

200.00 
36.30 

150.00 

100.00 

250.00 

1, 835. 21 

65.71 

145.  00 
200.00 
150.00 
1,  000.  00 
375.00 
150.00 
255.15 

300.00 

1, 000. 00 

140.06 

4,  797.  Oft 
1,428.61 

600.00 

375.00 
1,000.00 

225.  00 
2, 000,  00 

282.00 

1,  200.  00 

70. 02 

1, 200. 00 

576. 40 

606.50 
450.00 
1,000.00 
800.00 
135.00 
278.80 
666.67 


t 


Paid  3-23 


Paid  3-20... 

Paid  3-20  . . . 
Pd.3-21 

Pd.3-21. 
See  overdue.: 
See  overdue . 
See  overdue. 
Pd.3-20 

Pd.3-23. 


See  overdue. 
Pd.3-23 


Pd,3-4. 


Pd.3-23. 
Pd.  3-28. 


See  overdue 


See  overdue. 


26 


27 


28 


101.50  i  Seeovei'due 
1,000.00  I 
500.00  i 
25.5.15  i  Pd.3-26, ... 


29 


30 


Mar. 


31 


25.40 

300.00 

85.00 

55.25 

800.00 

275.  00 

500.00 

150.00 

3,  000. 00 

2,  500.  00 
1,  KJO.  00 
5,000.00 

200.00 

50.16 

4(K».00 

290.00 

3, 307. 29 

125.00 

140.00 

50.00 

1,000.00 

1,922.00 

200.00 

113.40 

280.00 


Pd.3-28. 
Pd.3-26. 
Pd.3-30. 
Pd.3-28. 


See  overdue. 


i 


Pd.3-28.... 
Pd.3-30.... 
Pd.4-23.... 

See  overdue 
Pd.4-1 

Pd.4-10.... 
Pd.4-6 


$255.  00 


243.00 

200.  00 
36.  30 

150.00 

100.00 

250.00 

1,  83.->.  21 

6.5.71 

145.00 


150.00 
255.15 


140.06 


282.00 
70.02 

606.50 

135.00 

101.50 

255.15 

25.40 

300.00 

85.00 

55.25 

500.00 


50.16 
400.00 
290.00 


140.00 
50.00 


113.  40 
280.00 


I 

'■A 


^'^ 


330 


INVESTIGATION   OF   NATIONAL    BANKS. 


INVESTIGATION   01^    NATIONAL    BANKS. 


331 


f 


lii 


Ke09totte  Xational  Bankf  Philadelphiay  Pa.     Bills  diHcounted,  being  part  of  Schedule  B 
of  hilU  reoeitmble  receipted  for  by  receiver — Continued. 


A.  H.  Bntter worth... 
Excelsior  Hosiery  Co 

Tlioti.  H.  Parks 

J  ohn  Love 

D.  Chambers 

Noblit  Bros.  &Co.... 
Jno.  F.  Vanloer,  jr. . . 
tlaoob  D.  Lit 

B.  K.  Esler 


Wilson  £.  Allen 

Henry  G.  Irvine 

Chaa!  W.  Glenn,  sr 

J.  H.  Hathaway  &.  Co... 

Wortman  &  Avis 

A,  M.  Zane 

Clinton  V.  B.  Getty 

Cox  &  Sons 

Philip  Caffery 

Jac;ob  Myers , 

H.  W.  Avis 

Preston  l*rice 


John  Smith.  Belair 

Fletcher  Pearson 

H.  Jackson  Lemon 

M .  Spackman 

J'.  D.  Jones 

C.  T.  Davis 

"Wm.  Galloway 

Jas.  R.  Thompson 

Jas.  F.  Canfiehl 

CollinaBros.,  tJoliimbus.  O. 

A.  AV.  Turn.r  &  Co.,  Ma- 
con. 

David  Hood 

Do 

E.  D.  Dougherty 

G.  F,  Lowry 

Jno.  G.  Divine , 

F.  Strate  and  Son 

( )ldach  &  Co 

Marie  Brolaskey 

Alpha  S.  I)elis.sa 

H.  HeilbonerSchnecdady  . 
H.  J.  and  G.  K.  Crump 

Do 

I>o 

Richd.S.  Collum , 

J.  K.  Shoemaker 

B.  A.  Stretsfh 

W.  S.  Emerson 

G.  F.  Stholler 

F.  A.  Davis , 

Jno.  O.  liownian 

B.  K.  Esler 

J  ames  H.  Clark 

"W.  J.  Simmons 

Phila.  Carriage  &  H.  Co  . . . 

Jno.  J .  Pyle 

Th(»ma.s  S'utle  &  Son 

E.  S.  Simmons  &  Co.,  Bir- 

rainjxham,  Ala. 

M.Taft,  Omaha 

Oliver  R.  Bair 

Chas.  S.  Salin , 

W.  J .  Jackson 

Ellen  S.  Toplis 

Henry 

E.D.'Trymby 

A.  Vauier 

1).  M.  Stackhouse 

flames  B.  Harner 

James  Hart,  Bait 

Thos.  Betta,  ( ii>ruitn 

Sallie  M.  Baker , 

Joshua  Bartley 

Chas.  R.  Colwell 


T.J.Dunn  &  Co 

Excelsior  Hosiery  Co. . , 

H.  A.  Cleverly 

John  Love , 

D.  Chtunbers 

D.  &  J.  C.  Noblit  Si  Co  . 

Jno.  F.  Vanleer,  Jr 

Leon  Isaacs  &  Co 

Philada.  Towel  Supply 

&  L.  Co. 

H.  H.  Yard 

L.  W.Walsh 

J  as.  Seddons  Sons 

E.  S.  Bartel  &  Co 

McLear  &  Kendall 

Jno.  W.Ward  &Co..., 

C.  V.  B.  Getty 

Chas.  C.  Torr 

Henry  Mcfiugh 

Jacob  Myer 

Deakym*&  Pennypa<!ke 
Henry  McHugh ' , 


ApL 


McLear  &  Kendall 

Chas.  A .  Pearson   .... 

McLear  &  Kendall 

D.  Grant  Young 

E.C.  Richmond  Co.,limtd' 

Wm.  Galloway |  Due  Apl 

Jno.  J.  Pvle I 

T.J.Dunn*  Co 

do 

do 


Saml.  Black 

Wm.  Smith 

Henry  C.  Keys 

Beuj.  F.  Roce 

K.Knox  Stewart, Md. 


Jno.  J.  Pyle 

do 

Walter  H.Suff 

Philip  Lowry 

Jno.  G.  Divine 

D.&.  J.  C.  Noblit 

F.  A.  DaviH 

Marie  Brolaskey 

A.  S.  Delissa 

T.J.  Dunn  &  Co 

H.  J.  and  G.  R.  Crump. 
, do 

do 

R.  S.  Collum 

J .  K.  Shoemaker 

G.  W.  Clothier 

W.  S.  Emerson 

C.  B.  Rees,  Son  &  Co... 

A.  R.  Thomas 

J  no.  O.  Bowman 

Phiia.  Towel  &S.Co  ... 

Henry  McHugh 

W.  J .  Simmons 

W.  D.  Rodgers  &  Co  . . . 

Jno.  J.  Pyle 

E.  S.  Bartel  &  Co 

T.  J.  Dunn  <fc  Co 


T.  J.  Dunn  &  Co jDue  April   9 

Jno.  Munroe |  10 

1^. 2).  oaiiu ...............  ...•....•..•.. 

R.A.Jackson '  11 

G.  W.  Hopkins i 

Jno.Ci'aig&  Sou 

lYlmby.  Hurt  &  Co j 

A.  A.  ^..owery ' 

Jno.  W.  Boughton 12 

W.R.  Murphy ! , 

Wil.IKntal  Co ' 

J.G.  Ram^dell 11 

J.W.Baker 13 

J.  Bartlev i 

Laura    T.    Colwell,  J. 

Hunter,  agt. 

Henry  McHugh ; 

J.  F.  Kerbangh ' 

R.M.  Wlllev i 

McLean  6i  Kendall 


$125. 00 
1,850.00 
300.00 
400.00 
105.00 
1,500.00 
160.00 
«23.  ."W 
6m.  HI 

2,050.00 
100.00 
225.00 
285.04 
125.00 
500.00 
55.00 
700.00 
174.00 

1,500.00 
100.00 
526.07 

200.00 

100.00 

4!>0. 00 

55.00 

181.30 

50.00 

1,000.00 

250.00 

268.92 

120.00 

280.00 

171.00 
200.00 
425.16 
175.00 
300.00 
.46. 44 

1,000.00 
200.00 

3,  000.  00 
133.00 

5, 000. 00 

5,  (MR).  00 

5,000.00 
10(».00 
500.00 
345.00 
75.00 
293.45 

2, 000. 00 
210.00 
666.66 
252.  62 
250.00 

1,500.00 
510.  00 
400.  00 
290.00 

142. 50 

300.00 

50.00 

3, 327. 42 
750.  00 
20(».00 

3,000.00 
208.25 
600.00 
150.00 
100.  (K) 
150.  00 
300.00 
100.00 

3,000.00 

468.78 
400.00 
300.00 
100.00 
150.00 


Pd.4-1. 

Pd.4-1. 
Pd.4-3. 


Pd.  4-3   on 
account. 


Pd.4-4. 
Pd.4-4. 

Pd.4-8. 
Pd.  4-11 


$160.00 

100.00 
125.00 


126.07 

55.00 
50.00 


120.00 
280.00 


Pd.4-7 

Pd.4-7 
Pd.4-9 

Pu.  4-8 

Pd.4-8 


Pd.  4-9. 
Pd.  4-16 

Pd.  4-13 

Pd.4-10 


Pd.4-13 

Pd.  4-14 
Pd.  4-13 

Pd.  4-13 


46.44 


3,000.00 
133.00 


100.00 


75.00 


400.00 
290.00 

142.50 

50.00 


208.25 


100.00 
150.00 

100.00 


•/ 


Keystone  National  Bank,  Philadelphia,  Pa.     Bills  discounted,  being  part  of  Schedule  B 
of  bills  receivable  receipted  for  by  receive*'— Continued. 


L.  H.  Patterson 

Jno.  Kinney * 

Jno.  O.Bowman 

E.  R.  Brvan,  Wmspt 


Excelsior  Hosiery  Co 

F.  A.  Davis 

W.  J.  Jackson  &.  Co 

Jno.  G.  Salter 

Saml,  J.  Dickey 

Frank  E.  Morse 

W.Geisl 

M.Gallagher 

F.  O.  Goodwin 

W.  J.  Thompson,  Camden. 

B.  F.  liauer 

David  Greer 

Wm.  B.  (Jreer 

John  J.  Pyle 

Alfrwl  I).  Cams 

AV.  H.  Jones - 

Quinton  Corwin 

Charles  S.  Saline 

Abr.  B.Paul 

H.  S.  Morrison  &  Co.,  Pe- 
ters buri',  Va. 

Timothy  J .  Donovan 

W.  E.  riering 

Edw.  E.  Rockwell 

M.  M.  Coppuck 

W .  D.  l*ri(!e 

Edmond  C.  Hill 

F.  W.  Lawrence -. 

W.B.Greer 

W.W.Ker 

AVm.  AuUl 

Excelsior  Hosiery  Co 

Vicento  Portuondo 

C.  M.  and  R.  Tompkins, 
Elmira. 

S.  Arthur  Love,  treas 

Jno  B.  Dvott 

Wilbur  rt.  Myers 

Richanl  Hazard 

J.W.Baker 

Wm.  Calhoun 

John  Mais 

Reynobls,  Goodj'ear  &  Co., 
Syracuse. 

W.J.  Jackson  &  Co 

A.  G.  Clemmer 

Henry  Van  Biel  &  Co 

W.  J!  Jackson  &  Co  ..... 

R.  W.Montgomery 

Rylaiul  Hamilton 

Fredk.  Strate  &  Son 

Ivan  Mueller...: 

J.  B.  Demphev 

C.    M.  &    r:  Tompkins, 

Klmira. 

Isaac  Taylor  &  Son 

Manr  C.  "Mullen 

H.  w .  Kelsey ,  treas 

B.  F.  Barnes 

John  A .  Truitt 

Saml.  R.  Mink 

Cihas.  White 

Geo.  Myei-s,jr 

McBri((o  liros 

B.  K.  Esler 


E.S.  Bartel  &  Co 

Jno.  Craig  &  Son 

Jno.  O.  Bowman 

A.  J.  Smith,  C.  V.  Laf- 

erty. 
Excelsior  Hosiery  Co  . . 

A.  R.  Thomas 

R.  A.Jackson 

J.G.Salter 

J.  Rej'nolds  &  Son  ...... 

C.  F.  Schtjolman  .... 

Mc  Lean  &  Kendall 

M.  Gallagher 

E.  S.  Bortel  &  Co 

T.J.I)unn<fcCo 

J.  W.  Pepper 

Geo.  C.  Hetzel  &  Co  ... 

( 'entral  Market  Co 

John  J.  Pyle 

Alfr«»d  D.  C  arns 

J.  V.Tullaway 


14 


15 


Due  Apr.  15 


16 


W.R.  Murphy 

Charles  S.  Saline  .. 
Central  Market  Co. 
McBride  Bros 


Henry  McHugh  — 

W.  E.  Hering 

Bradley  Bros 

M.M.  Coppuck 

E.  S.  Bortel  &  Co. . . 

John  Extel 

Henry  McHugh 

John  Greer 

John  S.  McKinley . . 
John  (yraig  &  Son  . 
C.  N.  Shellenberger 
Vicento  Portuondo  , 
T.J.Dunn  6c  Co... 


17 


18,19 


McFadden  &  Co. 

C.  H.  Filter 

Phillip  Lowery  . . 
Jas.  B.  Pattison  . 
Wm.  J.  Divine ... 
Geo.  L.  Harvey  . . 


20 


T.J.  Dunn  &Co Apr 


Robt.  A.  Jackson 

J.  G.  Ramsdell 

Henry  Van  Beil  &  Co. . .  i . . 

Robt.  A.  Jackson '.. 

G.  E.  Dearborn i . . 

R.  H.  Gordon,  1  reas | . . 

D.  &  J.  C.^'oblit&Co..|.. 
C.  Hutt,  Julius  Mueller. i.. 
Dairvmens'  Supply  Co. . ! . . 
T.  J.^Dunn  &  Co  ." |.. 


John  O.  Bowman 

W.J.Kelley 

W.  J .  Simons 

B.F.  Hance 


Allen,  Dumas  &  Thomp- 
son, Matron,  Ga. 

Haualsou  Bros.  &,  Co.,  At- 
lanta. 

R.W.  Steel 

Edwin  Salterthwait 

J.  M.  Cremerieus 


Isaac  Tavlor  &  Son j 

Chas.  O'Keill 

H .  W.  Kelsey,  treas ; 

J.  W.  Pepper j 

Kyle,  B«nrv  &  Co.,  Lim.j 

(.'entral  Market  Co 

Dan.  Mc  Arthur I  — 

Geo.  Myers,  jr j 

McBride  Bros I  — 

Phila.     Towel    Supply  (.... 

and  L.  Co.  ! 

John  O.  Bowman j . .. . 

John  Craig  &  Sou 

W.  J.  Simons 

W.  H.  Wanamaker, 

Wanam  ak  er  &  Brown . 
T.  J.  Dunn  &  Co 


22 


23 


.do 


R.  W.  Steel 

E.  Salterthwait 

Geo.  Gooiltellow  &  Sons. 


24 


$269.81 

475.00 

' 

i,:hoo.oo  ! 

Pd.4-13 $1,300.00 

9:1.31 

Pd.4-16 

93.31 

720.00  ; 

1 
i 

2,000.00 

Pd.4-14 

2,000.00 

3,063.02  i 

, 

:{8(».  00 

500.00 

175.  00 

125.00 

500.00 

100.00 

1, 482.  50 

2,500.00 

1.  586.  76 

47.87 

1,000.00 

150.00 

20.5.00 

Pd.4-18...... 

205.00 

100.00 

Pd.4-17 

100.00 

125.00  ! 

t 

101.07  ! 

Pd.4-17 

101. 07 

500.00 

1 

Pd.4-27 

500.00 

504.80 

2, 000.  00 

247.33 

800.00 

425.  50 

129.  92 

654.  74 

200.00 

100.00 

Pd.4-18 

100.00 

99.00 

1,  000.  00 

1, 500.  00 

Pd.4-18 

1,500.00 

250.00 

Pd.4-22 

250.00 

236.44 

1,875.00 

350.00 

225.00 

275.00 

1, 835. 22 

1, 570. 42 

418.00 

2. 209. 87 

100.00 

1,000.00 

1, 063.  83 

200.00 

500.00 

46.43 

1  PJ.4-21 

46.43 

100.00 

!  Pd.4-23 

100.00 

64.38 

i  Pd.4-23 

64.38 

250.00 

Pd.4r-24 

250.00 

200.00 

1,000.00 

1.500.00 

5,000.00 

101.50 

102. 72 

400.00 

200.00 

Pd.4-22 

200.00 

1,500.00 

635.33 

185.00 

125.00 

195. 00 

1, 645. 10 

Pd.4-23 

1, 645. 10 

280.00 

P.d4^29 

280.00 

290.00 

I  Pd.4-27.... 

290.00 

250.00 

\ 

1,000.00 

250.00 

.11 


i'^ 


;^1 


ff 


332 


INVESTIGATION    OF    NATIONAL    BANKS. 


Keystone  National  Hank,  Philadelphia,  Fa.    liilh  discounted,  heimj  part  of  Schedule  B 
of  bills  receivable  receipted  for  by  receiver — Continued. 


J.  A.  Wilson,   Wilming- 
ton, Del. 

Richard  Miller 

Ja<k8on  Breish 

G.W.M.  Rigor 

H-lleilbroner,  Schnectady 

Chas.  W.  Gertie 

Geo.  W.  Kendrick,  Jr  .  — 

B.  O.  Banes • 

G.  W.  Clotliier 

L.  K.  Erey,  M.  D 

Gu8.  A.  ililler 

R.  Q.  Gibbon 

J.  Gallagher 

Thos.  Learv 

H.VanBeilA  Co 

R.C.  Horr 

Chas.  ONeill 

Ricbd.  S.  Cullum 

M.McNiilty 

W.  T.  Mercereau,  N.  Y 

E.  L.  Merramiu 

B.K.  Esler 


E.  J. 


Ja«ob  Zeigler 

R.M.Wvrie 

Juo.  W.  MurgatToyd 

Wni.  B.  Murpliy 

Win.  H.Hahn 

Lee    Wolf   &    Bro., 

tt»n,  G. 
J.  Barclay  Hacker — 

Jno.  R.  Mclntire 

Emma  C  Reed 

F.  A.  Davis 

iieo.R.  Crump 

Chas.  C.  Farr 

Excelsior  Hosiery  Co 

Chas.  C.  Farr 

Wm.  Petry 

Jno.  J.Pyle 

Amos  Ellis 

Geo.  W.  Close 

W.J.Simmons 

Chas.  J.  Thatcher  . . . 

Wm.  N.  Jacqnett 

Kelsej-  Oriental  Bath 

Jno.  J.  Cassidy 

T.A.Davis 

Jas.  L.  Brown 


Day 


W.    C.    Martin, 

Martin. 

Richard  Miller 

Wm.  A  Gear\' 

P.  L.  Hill,  Attorney 

T.  J.  Dnnn  &.  Co 

J.  F.  I'ortuondo 

Cba«.  H.  Kendrick 

J.  W.  I'epper 

G.W.  Clothier 

J.  McLaughlin 

Kelscy  Oriental  Bath  Co. 

Geo.  Kugler 

J.  (iallagber 

Wm.  McLanghlln 

H.  Van  Beil  &  Co 

R.C.  Horr  &Co 

Patrick  O'Xeil 

Henry  McHugh 

T).  &J.(^Noblit(fcCo  .. 

Jno.  M.Kyle 

Wm.  Galloway 

Geo.  J.  ("onlev 

Phila. Towel  i>upplv  and 

L.  Co 

Henry  Mcllnjib 

Cei^ral  Market  Co 

Chas.  O'Neill 

Juo.  O.  Bowman 

< 'entral  Market  Co 

T.J.Dunn  &  Co 


Apl. 


25,26 
25,26 


27 


G.W.M 


28 
29 


30 


.Jno.  Craig  &  Son 

J.  W.  lioughton 

Emma  ( ,.  I Jecd 

A .  R.  Thomas 

Geo.  R.  Crump 

Chas.  C.  Farr 

Excelsior  Hosiery  Co.. 

Chas.  C.  Farr 

R.  M.  Braithwait  &  Co. 

Jno.  .T.  Pvle 

Anu)s  Kllis 

Geo.  W.  Close 

W.  J.  Simmons 

McLear  &  Kendall 

Sliowell&  Fryer,  Llim. 
Kelsev  ( )riental  Uath . . . 

H.  A.(;lcv,^rly 

W.  E.  Hering 

Geo.  W.  ('b»tbier 

MattbcAV  Hall 

T.J.Dunn  \  Co 


A.  M.  Zane 

Allen,   Dumas  &  Thomp 
son,  Macon,  Ga. 

Jas.  C.  Black , 

L.  B.  Mawson,  Yardley,  Pa.  >  W.  T.  Wilson  . . . 

Bernard  McHugli Henry  McHugh 

P.A.Davis A.  R.  Thomas  .. 

Jno.  C.  Allen Jno.  F.  Hillmau 

Jos.  McMenamin j  Henry  M.  Hugh 

Krirerick  &  Traunrer Jos.  H.  Field 


May 


May       2,  3 


Jos.  H.  Field 


T.J.T«Mld 

Edgar  N.  Black 

Otto  Wand 

W.  B.  Hutchinson 

Jas.  S.  Cantield 

Jas.  M.  .laittcs    ] -  •  •  - 

Jas.  T.  Wilson '  J.  J-  Salter 


Geo.  E.  Dearborn 

C.  A.  Kingsbury 

La  Ro4be  &.  Stahl 

W.  B.  Hut»hinson 

T.J.Dunn  A  Co 


Jos.  T.  Kerbaugh  . . 
W.  S.GritfilhA  Co. 


$100.00 

1,000.00 
271. 69 
100.00 
140.00 
145.00 
500.00 

2,  (KK).  00 
700.00 
111.88 
250.00 
500.00 
150.00 
181.68 

1, 100. 00 
320.00 

1,200.00 
420. 74 
63.47 
272.00 
200.00 
3.50.  00 
712. 18 

262. 23 
72.66 

101.50 

317. 16 
69.95 

300.00 

249.  50 

650.00 

250.00 

2,000.00 

1, 952. 56 

2. 00(».  00 

1,080.00 

1,000.(H) 

150.00 

800.00 

2,  500. 00 

:{oo.oo 
ia>.  00 

300.00 
206.00 
500.00 
100.00 
300.00 
250.00 
1,000.00 
280. 00 

500.00 
90.00 
551.81 
2,  000. 00 
liOO.OO 
491.99 
500.00 
225.  00 
100.00 
320. 00 
2(H).  00 
268.92 

;r>o.  00 

750.00 

nm.  50 

750.00 


Pd.4-28. 


Pd.4-30. 
Pd.4-27. 


Pd.4-27. 

Pd.4-28. 
Pd.4-28- 


Pd.  5-2. 


$100.00 


140.00 
145.00 


'250.00 

150.00 
181.68 


Pd.4-30. 
Pd.5-7.. 


IM.  5-2. . . 
Pd.5-2... 
Pd.4-30.. 

Pd.5-9.., 


200.00 


69.95 
300.00 


Pd.  5-6. 


Pd.5-5. 


.Walraven,tru8t«e! 1    1,  500. 00 


GuyC -,— , 

Boyd,  Wbite  «k  Co ■  May 

Kvle  Berry  6c  Co.,Lim . . ' 

S.  &  Co I  S.Bunting,  S.  <fe  Co | 

R.  Crump i  Walter  Tryday 


6 


1,063.37 
200.00 

5, 000. 00 
600.00 
752. 49 

200.00 

200.00 

1,500.00 


100.00 
300.00 
250.00 

280. 00 


90.00 


200.00 


Pd.5-6. 


Wm.  Marsliall 

T.  A.  Davis,  treas. 

Guy  C.  Walraven,  tnist^^e. 

W.  J.  Thompson,  Camden 

B.  H.  Davis 

S.  Bunting, 

TT   T   A'  I ' 

B.  K.  Esler. . . .'.  7.TT. . . . . . .  I  Phila.  Towel  Supply  and 

L.  Co. 

Willis  G.  Hale 1  Willis  G.  Hale. 

Fred.  W.  Nofer :  Fred.  W.  Nofer 

H.    T.    Morrison    &    Co.,  i  McBride  Bros  . 
Petersburg,  Va. 

*Mr.  Marsh  gave  Dis.  clerk  memo,  with  orders  to  put  it  on  Dis.  and  he  would  try  and  find  the  note, 
which  has  never  vet  turned  up. 
This  note  is  claimed  to  have  been  sent  G.  W.  M.,  by  mall. 


Pd.5-6.. 
Pd.5-6.. 
Pd.  5-11 


1, 063. 37 


200.00 

200. 00 

1,500.00 


ii» 


INVESTIGATION   OF   NATIONAL    BANKS. 


333 


Keystone  National  Hank,  Philadelphia,  Pa,     Bills  discounted,  heimj  part  of  Schedule  B 
of  bills  receivable  receipted  for  by  receiver — Continued. 


H.  P.  Connell 

Jas.  B.  Carrey    . .  -------  ■ 

J.    H.  Emerson,   Middle- 
town,  Del. 

W.  S.  Wolford 

T.  Henry  Sweeting 

Bou^hton  &  Torwilliger  . 

C.  Henry  Marshall 

Chas.  Ci  Farr 

Jacob  J.  Dietrick 

Harold  V.  Cleaver 

Jacob  Rothschild,  N.Y 

Henry  H.  Bingham 

Hugh  McNeil 

James  H.  Clark 

Wm.  Thorn 

Wm.  Petry 

Jacob  Cassel 

Jno.  J.  Pylo 

Vincenti  Partuondo 

H.  S.  Waite 

Thos.  Little  &  Son 

Hugh  McNeile 

W.  J.  Simmons 

Thos.  P.  Toner 

J.  G.  Gosch 

Klein  &  Bro.,  Kansas  City. 
Alpha  S.  De  Lissa 

A.  G.  Clemmer 

Chas.  P.  Herold 

E.  F.  Pooley 

D.  C.  Osborne 

Jesse  W.  Gerbart 

Howard  A.  Chase 

Hall  fc  Garrison 

Hugh  McNeile 

P.B.  Homer 

W.D.TrouiM? 

Herman  Wendell 

W.K.Mitchell 

S.  A.  Alexander 

Mrs.  H.  G.  Schwartz 

Bradford  Hill  Land  Co...- 

Isaac  B.  Mauger 

( 'has.  (,'.  Farr 

Wm.  J.  Simmons 

PMw.  Satterthwait 

('has.  Beamish 

T.  De  B.  Richards 

D.  M.  Stack  house 

Sam'I  Harrison,  jr.,  &  (Jo  . . 

B.  T.  Barnes 

Wm.  Petry 

Amos.  O.  Chase 

Wm.  W.  Watson 

Wesley  T.  Day,  Baltimore. 

Isaiah  Bender 

Miner  L.  Vaunt • 

Vincente  Portuondo 

Jno.  McFadden 

•Tohn  J.  Pyle 

John  Donahue 

Union  Credit  Co.,W.W. 

Apsley,  prest. 

W.J.Jackson   

J.S.Whitly 

Ceo.  Holland,  et  al 

Clinton  Buck  water,  Potts- 
town. 

John  Connelly 

Jas.  Reilly , 

L.  H.  Patterson 

Aiman  &.  Bro 

C.  A.  Meloney,  Atl.  City. . 

Geo.Fox 

S.  Kirkpatrick 

Geo.  J.  Richardson,  ex 

Robt.M.  Wiley 

W.  J.  Simmons 

John  Mais 

M.  E.  Broderick 

Peoples  &.Bro 

W.R.Murphy , 


Geo.  W.  Shirley 
Geo.  W.  Clothier 
D.J.C.Noblit&Co 


W.  S.AVolford 

T.  Henry  Sweeting 

J.  W.  Bough  ton 

LaRoche  &  Stahl 

Chas.  C.  Farr 

A.  B.  Wenrick 

Degerberg  <fc  Gansant  . 
J.  Kotbscbild  ScCo  .... 

Henry  H.  Bingham 

H.  A.'Cleverly 

Henry  McHugh 

Central  Market  Co 

R.  M.  Braithwait  &  Co 

La  Roche  <fe  Stahl 

Jno.  J.  Pyle 

Vincenti  Partuondo  . . . 

Jno.  L.  Galloway 

E.  S.  Bortel  &  Co 

Danl.  Mac  Arthur 

W.  J.  Simmons 

H.  <fe  J.  Brady 

Jas.  J.  McGin 

J.  F.  Portuondo 

Alpha  S.  De  Lissa 

J.  G.  Rsimsdell 

Chas.  P.  Herold 

Pooley  Bn>s 

Ed w.  H.  Faley 

Kreeoson 

R.  G.  Cbase  &  Co 

Guy  C.  Walraven 

H.  A.  Cleverly 

do 

W.  E.  Herring 

Jno.  J.  Pyle 

Wendell'  &  Smith 

Shewell  A  Tryer,  Lira  . . 


9,10 


May      9,  10 


11 


12 


Nelson  T.  Evans 

D.J.C.Noblit&Co 

Cha8.C.Farr 

Wm.  J.  Simmons 

Ed.  Satterthwait 

Chas.  L.  Duiigan 

T.  De  B.  Richards 

J.  W.  Bouf^hton 

Jas.  S.  Harrison 

J.  W. Pepper 

R.  M.  Braithwait 

And.  Marshall 

Jno.  L.  Galloway 

Yates  &  Troth 

W.T.Wilson 

Miner  L.  Vaunt 

Vincente  Portuondo    . . . 

Henry  McHugh 

John  J.  Pvle 

Patk.  O'N^eil 

E.  C.  Richmond  Co.,  lim. 


13 


14 


H.H.Yard 

Phillip  Lowry 

Geo.  Holland 

Dairyman's  Supply  Co. 


Henry  McHugh 

H.  J.  &  G.  R.  Crump  . . . 

E.  S.  Bortel  &  Co 

E.R.  Bryan 

C.  P.  Meloney 

Geo.  Fox 

A. H.  Moore 

D.  &  J.  C.  Noblet  &  Co. 

Central  Market  Co 

W.  J.  Simmons 

Geo.  L.  Harvey 

K.  L.  McMenamin 

Kyle,  Berry  &  Co.,  lim. 
W.E.  Murphy 


15 


May    16,  17 


18 


19 


20 


$.350.00 
90.00 
86.77 

600.00 

5.000.00 

2,000.00 
270. 41 

1, 000. 00 
175.  (K) 
110.00 

4,  (MK).  00 
750.  00 
100.00 
252. 62 
04.55 
450.00 
108.48 
.-.10.00 

2,  ,500. 00 
800.00 
490.00 
700.00 
65.00 
300.  00 
200.00 
150.00 

2,000.00 
200.00 
400.00 

2,500.00 

75.00 

200.00 

3,000.00 

400.00 

50.00 

.50. 00 

100.00 

150. 00 

3, 000.  (M) 

400.00 

75.00 

162.  00 

2,000.00 
57.85 

1,  000.  00 
275.00 

1,000.00 
100.00 
200.00 
900.00 
200.00 

1, 50t).  00 
500.00 
500.00 

1,  000.  00 

150.00 

61.20 

400.00 

2,500.00 
350.00 

1,000.00 
167.91 
771.48 

965.00 

i;t3. 00 

500.  QO 

74.50 

600.00 

4,000.00 
231.00 
700.00 

1, 000. 00 
200.00 
150.00 
35L00 
10L62 
175.00 

2, 100. 00 
450.00 
302. 72 

2,750.00 


Pd.5-11. 


Pd.5-8. 
Pd.5-9. 

Pd.  5-9- 

Pd.5-9. 


Pd.  5-9. 
Pd.5-7. 


$86.77 


110.00 
4,000.00 

100.00 

64.55 


200.00 
200.00 


Pd.  5-12 
IM.  5-12 
Pd.  5-12 

Pd.  5-13 
Pd.5-14 


Pd.5-13. 


50.00 

50.00 

100.00 


75,00 
57.85 

200.00 


ty 


^\ 


334 


INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


335 


Kejf8tone  National  Bank,  Philadelphio,  Pa.     Rills  diswuHted,  being  part  of  Sch^ule  B 
of  bills  receivable  receipted  for  by  receiver — Continued. 


Koch  Sc  Co.,  Clncin.,  O 

Hughes  Bros 

Price  I.Tatton 

11.  Irvine 

Henler  Cutlery  Co 

E.  HoditeB 

Stephen  P.  M.  Tasker 

Excelsior  Hosiery  Co 

Grauville  B.  Haines 

"Wm.  Petn-y 

Geo.  J.  llaymond  &  Co., 

Boston. 

Mine.  L,  Vaunt 

Chester  L.  Smith 

Chas.C.  Torr 

W.H.Smith 

Pooley  Bros 

T.W.Manship 

K.  Reach 

eT.  M.  llowig 

Andrew  Hughes 

Anian  &.  Bros 

J.  W.  M(  Cartcrty,  Bradford 
Isaac  H.    Evans,  Bryn 

Thos.  J.  Martin  &,  Co 

A.H.Moore 

F.  A.  Davis 

Geo.  W.  Kendricks.jr 

Robert  Boucher 

D.  M.  Stackhouae 

F.A.Davis 

E.  D.  Trymby 

M.B.Dwiffht 

Morris  S.  Packman 

F.A.Davis 

John  Connelly 

Chas.^.  Lynch 

James  Birnie 

Wm.  R.  Murphy 

John  Craig  &  Son 

Geo.  C.  Hetzel 

< ).  C.  Bosbyshell 

Vallee  Bros.  &  Co 

Henry  H.  Yard 

John'T.  Scott,  jr 

Chester   Co.    Cert.    Dep. 

West  Che8t*ir  G  uarantee 
T.  S.  D. 
Thos.  E.  Wonnan 

E.  J.  Lex 

W.  L.  Lance 

Mai-y  H>irley 

W.  »j .  Simmons 

L.  Shuster  Boraef  &-  Co 

Anton  Anian 

Isaac  H.Evans, Bryn  Mawr 

Adam  K<Bbler,  jr 

John  R.  Shirley 

H.  J.  &  G.  R.  Crump 

Wanamaker  &  Brown 

Alpha  S.  De  Sissa 

F.  A.  Davis 


J.r.  Portuondo I 

J.G.Kamadell 

Price  I.  Pat  ton |  May 

Central  M iirket  Co 

Herder  (.'utlery  C<» 

J.  (r.  Ramsdell 

Nelson  F.  Evans 

Excelsior  Hosiery  Co ... 

Granville  B.  Haines 

R.  M.  Pmithwart  &  Co. . 
John  E.  Potter  &  Co ... , 


21 


Mine.  L.  Vaunt 

Wanamaker  «fe  Brown  . 

Chas.C.  Torr 

Geo.  W.  Clothier , 

Pooley  Bros 

Chas.R.  Hamilton 

D.  &.  J.  C.  Noblit  &  Co 

Geo.  W.Oliver 

Jas.  T.  Kerbaugh 

R.Q.  GiblMjn 

Crleason  «fc  Co 

John  Greer , 


Isaac  Taylor  &  Son . 

A.  H.  Moore 

A.R.Thomas 

Chasi.  H.  Kendrick . 
J.  W.  Boughton 


A.  R.  Thomas 

Trymby,  Hunt  dt  Co... 

J.  G.  Ramsdell 

Jno.  Craig  &  Son 

A.  R.  Thomas 

Henry  M<Jlugh 

L.W."  Walsh.. 

Central  Market  Co 

J.  ( ).  Bowmad 

Dan'l  Crogan 

Geo.  diet zel&  Co..., 

O.  C.  Bosbyshell , 

H.  A.  Cleverly 

Henry  H.  Yard 

John  T.  Scott,  jr 

Dairymen's  Supply  Co 


22 
22 


23,24 


25 


26 


27 


Wm.M.  Flood 

(;eo.  W.  Smith  &  Co 

Excelsior  Hosiery  Co 

Jas.  Blackowski 

Jacob  J.  Pliinker,  atty.  W. 

P. 

Jas.  F.  Canfield 

Jacob  Greer 

J.  (t.  Connor 

J.  K.  Rishel 

Geo.  F.  Lowrv' 

Mrs.  E.  S.  Toplis 

Juan  F.  I'ortuondo , 

Juan  F.  Portuondo , 

Jno.  S.  Mcllvain 

Jno.  Fhiig  &  Co 

Edgar  N.  Black 

E.   P.   Townsend,  M.  D., 

Camden. 


Henry  H.  Yard 

Central  Market  Co. 

And.  H.  Haig 

Henry  McHugh. . . . 

W.  J.  Simmons 

J.  Leddon's  Sons. . . 
(ieo.W.  Clothier... 

John  Greer 

La  Roche  Sc  Stahl. . 


H.Van  Beil&Broe 

Wanamaker  &,  Brown . , 

Alpha  S.  De  Lissa 

A.  R.  Thomas,  L.  Shus- 
ter Boraef. 

E.R.Bryan 

Geo.  Dearborn 

Excelsior  Hosiery  Co  . . 

La  Roche  &  Stahl , 

West  Phil.  Brick  Co... 


T.J.Dunn  &  Co 

Central  Market  Co 

E.  M.  Coop«ir 

A.  C.  Rishel 

Phillip  Lowry 

Geo.  W.  Hopkins 

J.  F.  Portuando 

Juan  F.  Portuondo 

C.  C.  Haines 

D.  &  J.  C.  Xoblit  &  Co 

C.  A.  Kingsbury 

J.  G.  Ramsdell 


May 


27 


29 


30,31 


June 
June 


«.7 


6  and  7 


B.  CHorr&Co. 


$66.00 

41.13 

1,U6U.00 

65.00 

225.00 

300.00 
1, 900. 00 

375. 00 
5,000.00 
1,000.00 

293.35 

300.00 
750.00 

1,000.00 
175.00 

3,  000.  00 
200.00 
467.00 

1, 140. 00 

10L50 

400.00 

40.00 

207. 70 

400.00 

1,000.00 

2, 000.  00 

CUO.OO 

:J75.  00 

800.00 

2,  00(>.  00 

3,000.00 

202.21 

270.00 

2,000.00 

650.45 

12fl.  00 

183. 45 

250.00 

200.00 

5, 000.  00 

1,200.00 

206.  88 

32, 438. 72 

100.00 

100.00 


1,900.00 

144.10 

142. 15 

100.00 

330. 00 

550.00 

125.00 

100.00 

95.75 

510.00 

2,500.00 

5, 000. 00 

1, 000. 00 

1,000.00 

450.00 

1,345.39 

530.00 

130.00 

1,000.00 

268. 91 

40L80 

1,900.00 

2,500.00 

315.00 

650.00 

5,000.00 

5,000.00 

600.00 

313.59 

100.00 

75.00 

900.00 


i 


\^ 


Keystone  National  Bank,  PhiladclpMa,  Pa.     P»ills  discounted,  beiny  part  of  Schedule  B 
of  bills  rcceirabU  receipted  for  by  receiver — Con  tiii  tied. 


Geo.  W.Kucker 

R.  C.  Horr 

Henry  fl.  Yard 

Christian  Mac^k 

Bonner  &  Eisler,  K  Y 

Michael  O'Rourke 

McBride  Bros 

Henry  H.  Yard  . .  .• 

J.  McMurtrie 

John  H.  Miles 

W.  E.  Herring 

W.J.  Simmons 

Wm.  Rhodes 

Whitwill  W.Coxe 

John  Pipe 

Wm.  M.  Griffiths 

F.  A.  Davis,  treas 

H.  W.  Kelsev 

Geo.  W.  Smith  &  Co 

AVilson  E.  Allen 

Newton  K.  Regar 

Thos.  H.  Hunter 

W.  Y.  Warner 

Charles  J.  Thatcher 

A.  H.  Moore 

A.  H.  Moore 


Cha«.  H.  Davis 

H.  Knox  Stewart.  M.  D. . . . 
The   Bradford    &    Hill's 

Land  Co. 

Thos.  E.  Wanman 

Pooley  Bros 

C.B.Reeves 

Sam'l  Mcllvaine,  Chester. 

Isaac  Brown 

Thos.  E.  Wanman 

James  Reilly 

Geo.  C.  Hetyee 

Thos.  E.  Wanman 

John  J.  Pyle 

Henry  Gercke 

Geo.  W.  Kendrick,  jr 

John  McFadden 

Cox  Si.  Sons 

Robt.  Nichal 

A.  G.  Kellogg 

C.  E.Wymau 

The  Bradford  Hill's  Land 

Co. 

Geo.  A.  Schafer 

James  R.  Thompson 

Isaac  Fleming 

Henry  Redman 

Van  (Jurden  &  Young 

Robt.  A.  Jackson 

Hoeflich  &  Wilson 

J.  L.  Codamer 

John  T.  Dunlap 

Geo.  C.  Hetzel 

Baughtan  &  Terwilliger  . . 

Mary  H.  McGlade 

Geo.  W.  Smith  &  Co 

A'^an  (iunden  &  Young 

( Jeo.  W.  Kendrick,  \v 

Fred.  M.  Walton  &  Co 

H.  J.  &  G.  R.  Crump 

Const.  Carijenter 

W.H.  Thornton 

Henry  Van  Biel  &,  Co 

Henry  M.  Dixey 

Do 

Excelsior  Hosierv  Co 

N.VanBeil 

Sam'l  Bunting's.  Son  &  Co. 

H.  J.  &  G.  R.  Crump 

Schomacker  Piano  Co 


R.  C.  Horr&:Co 

do 

H.H.  Yard 

Robt.  M.Wiley 

S.  Black 

Michael  O'Rourke 

McBride  Bros ' 

H.  H.  Yard I 

J.  S.  McMurtrie | 

Henry  McHiigh i 

W.  E.  Herring j 

W.  J.  Simmons ' 

Matthew  Hall I 

H.J.  &G.  R.  Crump...! 
D.  &  J.  C.  Xoblit&Co.l 

W.T.Alexander I 

W.  S.Griffiths  &  Co....] 

H.  W.  Kelsev ! 

Geo.  E.  Dearborn j 

H.H.  Yard ' 

Newton  K.  Regar '< 

Thomas  Lewis i 

W.  J.  Quegley ! 

McLear  &  Kendall ! 

A.  H.  Moore j 

A.    H.     Moore,   A.  M. 
Moore. 

Chas.  H.  Davis i 

McLear  &  Kemlall V 

Nieson  F.  Evans 


June 


10 


12 


13  and  14 


13  and  14 


Geo.  W.  Smith  &  Co 

A.  H.  Moore 

floseph  F.  Fjeld 

Harry  H.  Long 

James  Reilly 

Mary  Myers,  Atlantic  City 


H.H.  Yard , 

Pooley  Bros 

Henrv  Coward 

(ieo.  !B.  Rnssell 

Central  Market  Co 

H.H.  Yard 

H.J.  &  G.  R  Crump.. 
Geo.  C.  Hetvee&  Co... 

H.H.  Yard: 

Jolin  J.  Pyle 

J.  A.  Ger<'ke , 

Chas.  H.  Kendrick , 

Henry  M.  Hugh , 

Chas.C.  Torr 

Rob'tNichals 

A.  G.  Kellogg 

C.  E.  Wyman 

Nelson  1^.  Evans 


15 


16 


S.  A.  Baker 

Harvev  Filley  &  Sous  . . 

F.  A.  Davis 

J.  G.  Ramsdell :.. 

Nelson  F.  Evans 

W.  J.  Jackson 

Boyd,  Whit«  &  Co 

J.  A.  Wilson 

Jno.  T.  Dunlap 

Geo.  C.  Hetzel  &Co.... 

.Ino.  W.  Baujihtan 

Chas.  McGlade 

Geo.  E.  Dearborn 

Nelson  F.  Evans 

( 'has  H.  Kendrick 

Freil.  M.  Walton  &  Co  . . 

C.  B.  Rees,  Son  &  Co 

J.  A.  Wilson 

do 

Henry  Van  Beil  &.  Co. . . 

R.C.Horr  &Co 

R.C.  HoiT&Co 

Excelsior  Hosierv  Co  . . . 

H.Van  Beil  &  Co 

S.  Bunting.  Son  &  Co  . . . 
H.  J.  &  G.  R.  Crump    ... 
H.  W.  Gray,  H.  W.  Gray, 
Treas. 

G«o.  E.  Dearborn 

A.  H.  Moore 

Krivems  &  Trauner 

H.Van  Beil&  Co 

H.J.  &G.R.  Crump.... 
W.Riddle 


17 


19 
10  and  21 


22 
23 
24 


25 
27  and  28 


27  and  28 


29 


30 


July 


3 
4  and  5 


$300.00 
470.00 

5,  :J00.  IK) 
100. 00 
157.50 

2,  110. 21 

3,  000.  00 

6,  000.  00 

:w4. 00 

540.00 
200.00 
,540.  00 

1.  000. 00 

1,  50.5.  87 
126. 50 

1,000.00 
500,00 

1,500.00 

1,  200. 00 

2,  400. 00 
400.00 

75.00 

4,  000.  00 
225. 00 

2,000.00 
8, 150. 00 

205.  00 

125.  00 

3,000.00 

1,570.00 

1, 000. 00 

453.47 

400.00 

35.90 

1.250.00 

3,  .500,  00 
5. 000. 00 
1,915.00 
1,000,00 

400.00 
400.00 
350.00 
500.00 
100.00 
350.00 
50.00 
3,000.00 

1,200.00 

500.00 

500.00 

90.00 

1,650.00 

2.500.00 

2,  500. 00 

1.000,00 

100.00 

5,000.00 

2,000.00 

2,000.00 

1,  285  00 

2,500.00 

500.00 

5.000.00 

1, 020. 69 

864,00 

855.50 

1,  300. 00 
600.00 
500.00 

1, 350. 00 
500.00 
5.000.00 
4,500.00 
2,500.00 

1, 345, 39 

2,  800. 00 
500.00 
503.68 

4, 650. 00 
306.25 


li  ^ 


336 


INYESTIGATION    OF    NATIONAL    BANKS. 


Keystone  National  Bank,  Philadelphia,  Fa.    Bills  discounted,  being  part  of  Schedule  B 
of  bills  receivable  receipted  for  by  receiver — Continned. 


Wm.M.Hirst 

Fletcher  Pearson 

A.  G.  Clemmer 

Bonner  &  Eiseir,  N.  Y. . . 

Bernard  M.  Hugh 

Wm.  Rhodes 

Stephen  P.  M.  Tasker  . . . 

Salfie  M.  Baker 

N.  Moritz 

J.  Henry  Hayes 

Wayne,  Stone  Sc  Co 

Excelsior  Hosiery  Co 

J.  L.  Cranmer 

Henry  H.  Yard 

Jaine's  Reilfey 

McBride  Bros -. . 

H.C.Ball 

Wni.  J.  Jackson 

Thos.  Chadwick 

D.  M.  Stackhotise 

Excelsior  Hosiery  Co. .. . 
H.C.Ball 


J.  S.  Carter. 


J.G.Ram8<lell... 
Chas.  A.  Pearson 
J.  G.  Ramsdell... 
S.  Black 


Henrv  M.  Hu^h 

MattiiewHall 

Nelson  F.  El  vans 

J.W.Baker 

H.  J.  Bergnian 

J.  Henry  Hay e« 

Wayne 'stone  &  Co  . . 
Exr«'lsior  Hosiery  Co 

C.McGlade 

H.H.Yai-d 

H.  J.  &  G.  R.  Crump  . 

McBride  Bros 

H.C.Ball 

Robh.  A.  Jackson 

Chas.  H.  Kfudiick 

Jno.  W.  Boii^hton 

Excelsior  Hosiery  Co  , 
H.C.Ball , 


F.  A  Davis 


July 


9 

"io 


July 


13 
13 
14 
17 


18,19 


20 

21 

Nov.  18 


$155. 00 

600.00 

100.00 

157.50 

675.00 

1,000.00 

3,300.00 

1,  000. 00 

1,000.00 

3,500.00 

1,000.00 

1, 025. 00 

500.00 

9,500.00 

6. 912. 00 

3,000.00 

791.31 

3, 109. 67 

500,00 

675.00 

1, 490. 00 

806.13 


July 


16 


Summary. 


Part  due  3-20  . 
Maturing  3-20. 
Demand  3-20 . . 


At  clearing  house. . . . 

Past  due 

Maturing 

Demand  M.  R.  Wood 
Demand 


In  hand  J.  S.  McKinlcy,  atty 

Read  &  Pet  tit 

G.W.Marsh 

B.P.Pain 

On  hand , 

Due  by  banks 


538, 885. 36 
700.00 


4 


539,585.36 


182,023.73 
530,  585.  36 
189,819.11 


811, 427. 20 


50, 0<M).  00 

356, 373.  79 

700.00 

69,  010. 00 


476, 083. 79 


10, 817. 59 

11,942.12 

500.  00 

24, 360. 03 


5, 925. 97 


PAST  DUE. 


Maker. 


Santa  Clara  Wine  Co 

C.  F.  Turner 

M.  D.  Lotioy , 


Geo.  W.Wright 

H.  B.  Driver 

Chas.  Lawrence 

Thomas  Brown 

Keystone  Watch  Club  Co 

Van  Dyke  &  Co 

Jno.  B.  MacA]tee 

Thomas  Brown 

Keystone  Watch  Club  Co, 
Jan.  Kennedy 


Thomas  Brown 

Do 

Do 

Lewis  Cassidy 

P.Wallace 

Jas.  M.  McCormick,  Kan- 
sas City. 
C.  C.  Lippincott,  Pittsb'g 


Endorser. 


L.  L.  Conn 


M.  D.  Locoy,  E.  P.  Good- 
man. 

Geo.  W.  Wright 

H.B.  Driver 

B.M.  Goldberg 

Thomas  Brown 


Geo.  M.  Tickers . 
Thomas  Brown  . . 


Endorser. 


Balance 

E.  P.  Goodman,  mgr. 


American  Land  and  Cat- 
tle Co.,  Jas.  Kennedy, 
int.  Atkinson  liros. 

Thomas  Brown 

do 

do 


Keystone  Watch  Club 

Co. 
do 


Atkinson  Bro. 


.do 


*  To  J.  S.  McKinley,  att'y. 


Due. 


Amounts. 


Apl. 
Dec. 
Apl. 

July 
Feb. 
Mar. 
Apl. 


May 


10, 1888  I 

12. 1888 

8. 1889  { 

18. 1889  ' 
25,1800 
15,1890 

0, 1890  1 

14. 1890  ; 
18, 1890  1 
18, 1890 
21, 1890  , 
27, 1890  ! 

5. 1890  I 


8,1890 
16, 1890 
21,18',H) 
21,1890 
28, 1890 
30,1890 

80,189 


$2, 487. 06 
12.5.00 
100.00 

5,000.00 
150.00 
400.00 
250.00 
100.00 
183.75 
l.'W.OO 
250.00 
150.00 
360.00 


250.00 
250.00 
250. 00 
144.  73 
100.  00 
645.00 

675.00 


/ 


INVESTIGATION   OF   NATIONAL   BANKS, 


337 


Keystone  National  Bank,  Philadelphia,  Pa.     Bills  discounted,  being  part  of  Schedule  B 
of  bills  receivable  receipted  for  by  receiver— Continued. 

PAST  DUE-Continued. 


Maker. 


W.  Scanborough,  K.  Y  — 


Thomas  Brown 

H.  F.  Atkinson  &  Co., 
Bait. 

Jas.  W.Sayre , 

Thomas  Brown 

Keystone  Watch  Club  Co. 
H.B.  Driver 


Endorser. 


Keystone  Watch  Club 
Co. 

Thomas  Brown 

Atkinson  Bros 


G.  Byron  Morse 

John  Nolen 

Chas.  E.  Glentworth . 
Edmund  Stewart  .... 

E.  R.Brj'an 

Morris  L.  Lessly..... 

W.  F.Shaw 

Geo.  Rossiter , 

Jno.  Smith 

F.  M.  Freeburg 

H.  W.  Kelsev , 

Willis  G.Hale 

Wm.  Cahoun 


C.  G.  Welch 

W.  R.  Fenner 

S.  E.  Packard,  agt  . . 


Jno.  J.  Carberry.. 
Jas.  W.Elliott.... 

Jos.  L.  Allan 

Wm.  M.  Griffith . . 
S.  E.  Packard,  agt 


Jno.  N.  Driver 

Alfred  Hindle,  whigt. 

Robert  Cams 

Wm.  M.Stuart 

James  Morgan 

Robert  Cams 

JaA.  L.  Allan 

S.  E.  Packard,  agt . . . 


Jaa.  W.Sayre... 
Thomas  Brown. 


Endorser. 


Atkinson  Bro. 


Jno.  M.  Driver,  H.  B. 
Driver,  att'y. 

G.  Bryon  Morse 

John  Nolen 

Wm.  Calhoun 

Edmund  Stewart   


C.  A.  Thompson , 
W.  F.  Shaw 


Jno.  Smith. 


H.W.  Kelsev 

Willis  G.Hale 

Jno.  Hayes,  treas.  Ridly 
B.A. 


S.  E.  Packard,    H.  B 

Packartl. 

W.  S.  Wolford 

do 

Faulkner  &  Allan 

W.  T.Alexander 

S.  E.  Packard,    H 

Packard. 

Jno.  N.  Driver 

F.  A.  Mitchell 

Robt.  Cams 


11, 1890 
21, 1890 
July  28, 1890 
H.B.Driver I  Aug.10,1890 


Due. 


May  31, 1890 

31, 1890 
June  4,1890 


Amount. 


,  Sep. 

Balance  of  250 

Oct. 

Jno.  Hayes,  treas Oct. 


BaLof$900 


H.  S.  Packard 


Nov 


E. 


Harvey  Filley  &  Sons  . . , 
S.  E.  Packard,  agt 


Do 

W.  H.  Brown,  N.  Y . 

James  Morgan 

D.  L.  Drew 

S.  E.  Packard,  agt  . . 


Aman  &  Bro 

Geo.  W.Smith 

Frank  J.  Primrose. 

Robert  Cams   

Chaa.McGlade 

Wm.H.Moyer 


James  Morgan 

Robt.  Cams 

Faulkner  &  Allan 

S.  E.  Packard,  H.  E. 
Packard. 

Harvey  Filley  Alumi- 
num Plating  Co. 

S.  E.  Packard,  H.  E. 
Packard. 

do 

W.  H.  Brown 

James  Morgan 

D.  L.Drew 

S.  E.  Packard,  H.  E. 
Packard. 


H.  S.  Packard 


Dec. 


16, 1890 

26, 1890 

5,1890 

15, 1890 

2, 1890 

21,1890 

28,  1890 

31,  1890 

.  5,  1890 

9,  1890 

23,  1890 

24,  1890 
23,  1890 

26,  1890 

27,  1890 
30,  1890 

3,  1890 

5,  1890 

7,1890 

14,  1890 

16,  1890 


A.B.Wenrick 

Frank  J.  Primrose 

Robt.  Cams 

Jno.  O.  McKinlay 

Jas.  R.  White,  manager 


H.  S.  Packard t  Jan. 


H.  S.  Pa<;kaixi 


do 

Bal.  of  $1,000. 


H.  S.  Packard 


Jas.  L.  Allan 

Milton  C.Greivar 

Chaa.McGlade 

Frank  J.  Primrose 

D.  J.  Thomi)son 

Frank  J.  Primrose 

Chaa.McGlade 

Wm.  H.  Moyer 

Est.  Jno.  C.  Lucas 

Wm.  B.  Hutchinson,  Wm. 
H.  Galbraith,  Wm.  Cal- 
houn. 

S.  Robinson 

Frank  J.  Primrose 

Chas.McGlade 

Wm.  H.  Mover 

Thos.  W.  Dickson 

B.  Frank  Cooling 

•      3792 ^22 


Faulkner  &  Allan 


Jno.  S.  McKinlay 

Frank  J.  Primrose 

Faulkner  &  Allan 

Frank  J.  Primrose 

Jno.  S.  McKinlay 

Jas.  R.  White,  manager  . 

Est.  Jno.  C.  Lucas 

Geo.  W.  Shirley 


Aman  &  Bro 

Frank  J.  Primrose 

Jno.  S.  McKinlay 

Jas.  R.  White,  luanger 

James  Dickson 

Jas.  N.  Cooling 


Granville  B.  Haines, 
M.  E.  Lucas,  ads. 
est.  J.  C.  Lucas. 


Jan, 


Feb. 


2,  1891  i 

I 

3,  1891  I 

4,  1891  ; 

5,  1891  I 
7,  1891 

10,  1891  [ 

11,  1891 


16,  1891 

17,  1891 
27,1891 
27. 1891 
28. 189; 
29, 1891 


30, 1891 

2. 1891 

5, 1891 

5, 1891 

10, 1891 

12. 1891 

12. 1891 

13, 1891 

2, 1891 

17, 1891 


14, 1891 
19, 1891 
19, 1891 
2:5, 1891 
23, 1891 
27, 1891 


$680.00 

250.00 
694.20 

312.  72 

250.00 
3,500.00 
1,*  000. 00 

590.00 
90.00 
610.00 
60.00 
800.00 
227.00 

2,  000. 00 
250.00 
100.00 
419.50 

1,500.00 
600.00 

2,000.00 

600.00 

151.50 

5,600.00 

124.  72 

144.50 

2.  000. 00 

1,  000. 00 

6,  200. 00 


22, 

1890 

1,000.00 

24, 

1890 

598.  .50 

25, 

1890 

1.  000.  00 

28, 

1890 

238.  20 

28, 

1891 

1,  000.  00 

28. 

1891 

1,000.00 

30, 

1890 

1, 400.  (K) 

1. 

1891 

2,  .500.  00 

500.00 
3, 200. 00 

2,  5(M).  m 
500.  (K> 
9tKK  (K) 
250.  (K> 

6.000.00 

685.41 

100.  00 

2,  576.  77 

500.00 

2.  500. 00 

4,  368.  46 


1,  050.  00 

494.60 

2,500.00 

1, 976. 78 

150.00 

2, 261.  70 

2, 500. 00 

4.  454.  01 

50, 000.  00 

L  800. 00 


452.11 

3, 105. 95 

2,500.00 

4, 310. 92 

150.  00 

102.20 


M 

4': 


'  'ti 


•■1 


338 


invp:8tigation  of  national  banks. 


INVESTIGATION   OF   NATIONAL    BANKS. 


339 


Keustone  National  Bank,  Philadelphia,  Pa.     IHlU  diaeouuted,  hHmj  part  of  Schedule  B 
of  bills  receivable  receipted  for  bif  receiver— Contmnea. 


[PAST  DUE— Continued. 


Maker. 


Spring  Lake  Beach  Impt. 
Co. 

Wm.  H.Moyer 

Do 

.Tfts.  L.  Allan 

ThoH.  E.  Wareman 

.Tann^a  J.  King 

Robeii'  Cams 

PeHn.  Rooflufj  Co 

Robert  Cams 

Tho3.  Brown 

Koystone  Watch  Club  Co 

Frank  J.  Primroae 

E.  E.  Perry 

Thos.  Durham  &  Son 


Endorser. 


Ghas.  Zane. 


Spring  Lake  Beach  & 

Tnipt.  Co. 
Jas.  K.  White,  manager 

do 

Eanlkner  &  Allan 

H.  H.Yard - 

.Tno.  W.  Barron •' 

llobert  Cams 

F.A.Mitchell 

Kobert  t'arns 

Thomas  Brown 


Endorser. 


Due. 


Feb.  28, 1891 


Amount. 


Frank  J.  Primrose . 
Geo.  A.  Perry 


Wm.  J.  Kelly 


Mar. 


M.  Foreman 


28, 1891 

4,1891 

7, 1891 

11,1891 

11, 1891 

14, 1891 

14, 1891 

1ft.  1891 

Mar.  18, 1890 

29. 1890 

Jan.  20.1891 

July  18, 1889 

Jaii.  21, 1887 

May  15,1887 

June  30, 1887 

Mav  29, 1887 

Kov.  16, 1888 


$5,000.00 

4. 506. 21 

4, 019. 92 

350.00 

1, 803. 00 

aoo.oo 

1,000.00 

120.  (H) 

1,000.00 

321. 15 

80.00 

2, 895. 66 

*  287.  50 

11,150.00 

t. 590. 00 

1 890. 00 

1860.00 

12,040.00 


182,023.73 


•  To  J.  S.  McKinlay,  att'y,  7-19,  '89.  t  To  J.  S.  McKiulay,  att'y,  5^-*.  '89. 

DEMAND  LOANS. 


Geo.  D.  Phelan 

J.  C.Wymau 

Geo.  E.  "Cumminga 

John  J.  Pyl© 

G.  B.  Haines  &  Co 

S.  S.  Garwood 

L.  C.  Gropengeisser 

T.  Nelson  Davis ■ 

Marv  P.  Logan 

Beuj.  Seisser 

K.  C.  Gaskill 

M.  K.  Wood 

Geo.  E.  Cnmmings 

David  Gai'risou 

C.  A.  Bradonburgh 

H.  H.  Yard 

E.  Bedford 

M.  R.  Wood 

M.  Landauer 

Bureau  Carr  Co.,  No.  1 

C.  Horr 

G.  W.  Marsh 

D.  L.  Drew 

Jas.  M.  Battenby 

D.  and  J.  C.  Noblit  &  Co... 

D.  L.  Drew 

Horatio  G.  Kern 

E.  B.  Richmond  Co.,  limt'd. 
JohnG.Pyle 


Geo.  D.  Phelan 

J.  C.  Wyman ■ 

Geo.  E.  Cummings 

John  J.  Pyle 

G.  B.  Haines  &  Co 

S.  S.  (Jarwooil 

-L.  C.  Gropengeisser 

T.  N.  Davis 

Mary  P.  Logan 

Bem.  Seeser 

do 

R.  C.  Gaskill 

M.  R.  Wood 

Geo.  E.  Cummings 

David  Garrison 

C.  A.  Bradenburgh 

H.H.  Yai-d 

E.  Re<llbrd 

M.  R.  Woo<l 

M.  Landauer 

Bureau  Carr  Co.,  No.  1 

0 •  XI orr  - •••••••••••••••••••• 

G.  W.  Marsh 

D.  L.  Drew ••• 

Jas.  M.  Battemby 

D.  and  J.  C.  Noblit  6c  Co 

D.  L.Drew 

Horatio  G.  Kem 

C.  B.  Richmond  Co.,  limt'd.. 
Jno.  G.  Pyle 


$1,900.00 

1,000.00 

900.00 

1,000.00 

5, 000. 00 

600.00 

90.0<> 

800.00 

1,600.00 

250. 00 

220.00 

400.00 

:k)0.oo 

950.00 

2,000.00 

2, 000. 00 

50,000.00 

1,000.00 

*700.00 

900.00 
1, 210. 00 

500.00 
1, 000. 00 

200.00 
8.000.00 
1,500.00 

600.00 

698.11 
2, 500. 00 
2,000.00 


89,818.11 


*  Separate  receipt  firom  C.-H. 


/ 


Schedule  C. — Amounts  dm  by  banks  March  20,  1891, 
Assets : 

Citizens'  National  Bank,  Baltimore $3, 053. 81 

National  Bank  of  Commerce,  Boston  . .  -. 778. 00 

National  State  Bank,  Camden,  N.  J 980. 26 

Delaware  Co.  National  Bank,  Chester,  Pa 392. 52 

Fort  Dearborn  National  Bank,  Chicago,  111 2,  793. 67 

First  National  Bank,  Conshohocken,  Pa 25. 38 

Second  National  Bank,  Frankford,  Phila 4^  402. 16 

National  Bank  of  Germautown,  Gerniantown,  Phila 1, 620. 47 

luteo^rity  Title  Ins.  and  Trust  Company,  Phila 216. 90 

Jenkintown  National  Bank,  Jenkiutown,  Pa 58. 50 

First  National  Bank,  Media,  Pa 545. 23 

Merchants  and  Manufacturers'  National  Bank,  Pitts..,  Pa 2,  535.  73 

Northern  Savinjjs  Fund,  Safe  Deposit  and  Trust  Co 297. 34 

Safe  Deposit  Bank,  Pottsville,  Pa 202. 73 

Keystone  National  Bank,  Reading,  Pa '  493.  n 

F.rst  National  Bank,  Riclimond,  Va 263.  23 

P'irst  National  Band,  Scranton,  Pa 346. 43 

German  Bank,  Wheeling,  W.  Va 428, 80 

West  Philadelphia  Bank,  Phila 374.  79 

Farmers'  National  Bank,  West  Chester,  Pa 494. 87 

Union  National  Bank,  Wilmington,  Del 2, 265. 29 

N.  J.  Trust  and  Safe  Deposit  Co 205. 74 

Camden  Safe  Deposit  Co 679. 04 

23, 424. 00 

Tradesmen's  Nat.,  New  York 1,757.32 

Chase               "        "        "      765.02 


Schedule  D. — Cash  items  from  deposits  made  March  20,  1891. 


J.  D.  Laws,  Drexel  &  Co.,  3,  12 

pay  stopped $92. 50 

Drexel  payment  refused 262.  50 

Keystone.* 178.66 

Keystone 10, 000. 00 

Keystone 9.43 

Keystone 14. 00 


'  Keystone 

Keystone 

Keystone 

Keystone 


25, 946. 34 


$83.00 
23.46 

338.58 
31. 50 

11,033.63 


SCHKDULE  Y..— Country  checks  from  deposits  made  March  20, 1891. 


Mrs.  E.  R.  Freeman,  New  Jer- 
sey, T.S.D.Co 

City  treas. — 

Chicago,  111 

Frankford 


$15.30 


ft 
ft 


Germantown 


it 
tt 
It 
tt 
tt 
tt 
tt 
tt 


374. 

113. 

6. 

.56. 

11. 

28. 

45 

200. 

7. 

108. 

335. 

43. 

82. 

96. 


44 
79 
05 
(X) 
75 
26 
00 
00 
40 
80 
95 
.50 
00 
00 


City  treas. — 

Integrity  Trust  . 
Industrial  Trust . 

Manayunk , 

it 


Media 

N.  Western,  Phila 

N.S.F 


It 
u 


W. Phila  .... 
Trades  Trust 
3, 21  Camden 


$26. 00 

66.00 

74.00 

22.25 

8.00 

7.  .50 

L58.80 

.S7.00 

4f.00 

8.00 

219. 50 

443.42 

220.22 


2, 855. 93 


Schedule  F. — Cash  at  the  time  of  the  suspennon. 


9 

pennm 


Own  circulation 

Mutilated  coin 

Counterfeit  notes  ($10) 
Fractional  currency . . . 
Fractional  silver 


$1, 000. 00 

94.14 

20.00 

19.72 

1,300.00 


Silver  dollars $6,000.00 

Gold  coin 3,575.50 

United  States  gold  certificates  30, 000. 00 

42,009.36 


it 


.r 

yh 


!  '1 


¥ 


340 


INVESTIGATION   OF   NATIONAL   BANKS. 


Schedule  Q.—Cash  items  March  W,  1801. 


a 

i( 

i( 

it 

a 

a 

n 

(( 

t( 

tt 

(( 

it 

if 

it 

it 

it 

t< 

it 


$152.12 

^^^  ^ .-  '^«5«  15 

s7  N.  ifroadhent,  cash  attached  $100 250. 00 

Jno.  H.  Longstreet  and  profee tX^nn 

Mems.  Jno.  W.  Harron .li;^ 

L.  Groff  &  Co.,  end.  G.  McGlade,  profee ^'  ilX'  lS 

H.  D.  Holt,  end.  F.  A.  Mitchtll,  profee ^?X* XA 

Fiunus  Maguire,  end.  G.  W.  Clothier,  profee 32.  Ob 

'<        A.  Barrett,  jr.,  &  Co.,  end.  Penn.  G.  Co.,  profee  .... 

And  McClees,  end.  Jno.  Yonug...- 

Walter  H.  Smith,  end.  Geo.  J.  Dugler 

H.  Qu  inn,  end.  F.  M.  Love f""^ 


2, 11,91.  Ck.  pro.  L.  Dolmas,  Chester 
3, 13, 91.  Ck.  Jno.  Hayes. . . . 
9,13,90.  '^  ""  "       "    ~ 

2, 13, 90. 
5, 27, 90. 

9. 16. 90. 
10,  29,  90. 

2,28,91. 

2. 11. 91. 
3, 11, 91. 
3,17,91. 
3, 12, 91. 
3,19,91. 
3,18,91. 
3,19,91. 

12,15,90. 
12, 15, 90. 
11, 11, 90. 
11,11,90. 
2,    1,91. 


461. 52 

20.00 

5.60 


.50.00 
60.00 


E.  M.  Cooper 

W.F.Shaw 

MeniB.  Jos.  N.  Cooling oM^ 

"       Wm.Calhown ^5.00 

"       Win.  Calbown,  end.  D.  r.  S.  Nichols 7o.OO 

Mems.  Win.  Calhowu }?21S 

Note  J.  L.  Galloway,  end.  W.  Calbown,  jr 190. 95 

J.  McConnell,  cash  attached  $5 140. 00 


<( 


3!l7!9l!  Ck.  Mems.  W.  Calhown 262.25 

1    3  91.     "        "       G.L.Hawey 1^00 

o  tH\  ot\       t^  "  **         2.W.  01) 


11 
it 

it 
it 


H 

it 


ft 

a 


tt 
ft 


145. 00 
200.00 
1.56.00 


J.  Keiublc,  Biild.  ac. ,  end.  J .  Reynolds,  jr , ,..,  ,^, 

,8.  G.W.Marsh,  Pt 162.00 

^  Marsh,  Pt Q^'^S 


3, 20, 90. 
1,13,91. 

9. 13. 90. 

3. 18. 91. 

3,19,91.     *'    Mems 
3,13,9L  Ck.  G.W 
3    6,91.     "    Mems.  G.  W.  Marsh,  Pt 

3  13  9L     "    Mems.  G.W. Mar8b,Pt ^50.00 

3  16  91.     "    Mems.  G.W.  Marsh,  Pt 45.00 

3  19  91.     "    Mems.  G.  W.  Marsh,  Pt -^00 

12  16  90.     "    Note  H.  Patterson,  end.  G.  W.  Marsh ; olMS 

2!   2.91.  Receipt  for  P.  O.  for  postal  note ^rJx? 

Cash 121.01 

3,20,91.  Ck.  paid'jVA.  Keiley  &  Co 179.87 

3;20;9L     '^        *'    Wm.J.BaWr j^-^^ 

3  20,91.     '*        "    Jacob  Meyers «x!!*  Aa 

3)20,91.  Mems.  1  teller  short 


7.68 


200.00 


3  20  91.  Ck.  L.  Dolmas,  from  (  hester  profee  ($40  attsichcd  cash) 152. 02 

2,' 18!  Ck.  Mem.  J.W.Catberiue,.ir J5.07 

0»>f\       it  it  **  ^,  oil*,  lo 


3,20. 
3,20. 
3,  9. 
3,  9. 
3,   9. 


(( 

it 

ft 

it 

it 

a 

it 

it 

tt 

it 

it 

a 

285.00 
600.00 

a5. 11 

2, 200. 00 


Country  checks  held  from  3,  19 ^'^?'Si 

Items  returned  from  Canuleu  3,  20 11.^ 


SCHKDULK  H.^Due  bills  on1standiHg  S,  20,  ^91. 

No.  14477 $760.22  ;  No.  14486 - -- 

1447g                     a59. 08  i  Clearin'T  bouse  settlements 

14480 1, 037. 05  1  Runners' Exc,  3,  19 

14481*'     6,000.00' 

14482      1,193.94  I 

J4J83"                     3, 000. 00     14487.  To  C.  Treas.,  3,  20  . . 

14484 5,000.00 

14485 800.00  ! 


Di  LE  I. — DepositH  made  a.  »».  March  20,  1891, 


14, 168. 58 


$1,812.90 
23, 031.  U 


J.  D.  Laws 

Benj.  Sciser 

Geo.  C.  Leupold 

Mrs.  E.  R.  Freeman. 
City  treas 


42, 994. 6:^ 

706.88 

43,701.51 


$292.50 

50.00 

3.5.00 

100.63 

28,762.54 

29, 240. 67 


INVESTIGATION   OF   NATIONAL    RANKS. 
SCHKUIJLK  J.—/«  account  wilh  the  Keystone  Xatiotial  Hank  PhihuVa.,  IS- 


Adams,  "W.  H.  and  C.  E $25.  54 

AuHpacli,  F.  J 98. 89 

Acker,  F.  A 93.  63 

Adams,  Ebeut;zer 9.63 

A pplejrat©  J.  It 1,  894. 89 


Armstrong  &.  Vance. 

Arthur  6l  Bio,,  R 

Altonins.  S.  li 

Agnew,  B.  L 

Allen,  W.P 

Allen,  JaH.  L 

Alexander,  W.  T. 


2.11 

456.97 

96.74 

282.74 

115. 80 

14.79 

79.73 

Ahern,  J<»hn 4, 877. 59 

124. 54 

571.50 

1.78 

100.05 

100.00 

327. 25 

226. 12 

1.12 

61.55 

586. 28 

25 

1.50 

201.00 

12.29 

936. 71 

10.00 

36.44 

400.03 

133.  80 

15.00 

246.47 

257. 47 

9.48 

555.63 

293.  00 

1.41 

668.44 

3.00 

9.22 


Allen.  Anna  Cr 

Alcock,E.C 

Alard,  Herman  Dr. . . 

Allen,  tJ.  Alfred 

Alcock,  A.  P 

AshmeMl,  A.  C 

Annear,  Sam'l 

Anderson.  D.  L 

Apsley,  \V.  H 

AnderHon,  Sam'l 

Ander8<m,  S.  L 

Adams.  C.F 

Aldre-d,  H.  A 

Aslihridfxe,  E.  A 

Anderson.  Mrs.  A 

Ashton.  Kate 

Allison,  Mrs.  A.  A.... 

Aubrey 

Alexander.  L 

Atwood,  O.  E 

Applejrate.  Minnie  . . . 

Apitk'^ate,  Ida  M 

Ashbndge,  Chester  E 

Baatian,H.  S 

Bradley  Bros 

Bagg.  Jessie 

Bare,  A<lam  H 

Balct  ulor.  Bros 

Bayley.  Florence 


»••■••< 


Baker,  W.J 809.45 

Barker,  C.  A 

Bardslej',  J.,  &.  Co 

Bradfoi-d.  Mills 

Braithwait,  R.  M.,  &  Co 
Bailey,  Lewis  L.,  &  Co. 

Baker,  J.  D 

Basterel,  Geo.  D 

Bra<lly,H.H 

Baker.H 

Brandt.J.E 

lilack,  Henry 

Bauer,  Bros 

Bailey,  A.  S 

Baner,  B 

Bradenbaiigli,  C.  A 

BaldiC.C.  A 

Ban-lay,  C.B 

Baker,  Sallie  M 

Battersby .  Jos.  M 


2,'>.77 

773.11 

11.32 

05 

BanlsU-y,  ,J .,  sjjecial 35, 80] .  55 

Blancher.D.V 5.00 

Bacon.D.H 16.95 

Black,  Samuel 540. 17 

Battison,  John,  jr 8.36 

Blackburn,  C.  A 45 

Baker,  An na  H .38.  (»8 

Bradley .  M  ichsiel 662.  44 

Blasius.  Oscar 5.x  44 

Barrs',John 460.00 

Blasius  &..  Sons 3  26 

Bagot.J.W 210.00 

Black  wells.  Durham  Co 30  00 

Iiarnard,Ray  C 551.46 

Barritt,  Chas.  H 264  44 

Bancroft  &  Cox .'  80.77 

Baraes.  E.C 128.3I 

l|aillu,Rev.J.K 24.00 

Baldwin,  Elmer  E 167.64 

M-^'V'^F 51.26 

Baker,J.  W.,Kccty 430.45 

Baker,  ('has.  T..  Hftt 9.03 

BradenbiirK.  Garrison  &  Co 33.  25 

Beale,  S.  T.,  jr : 245.64 


4. 141. 65 

7.02 

6, 152.  60 

391. 52 

14.05 

2rM.  54 

545.13 

50 

216.  23 

37 

104.37 

14.60 

87 

97 

368.  ,'»3 


Bennage,  W.  D 

Beard.  M.  A 

Bender,  W.  A 

Bell,  Jos 

Bemady,  D.  E 

Bremer,  J^ohn 

Beiswanger.  Carolina 

Bergman.  H.  J 

Belmont  Driving  Club 

Bergman  &  Mority 253. 07 

Bell.S.J 35.62 

Be<lell,C.H 113. 30 

Belmont  Racing  Fund 27, 12 

Bentley,  Mrs.  J.  L 90 

Bedell,  Florence  G 144.75 

Bergner,  Linda 309.46 

Bergner,  Serena  M 500. 00 

Billstine,  A 103. 12 

Brinton,  I.iewis 2. 22 

Brinbaner,  H 135^  20 

Bible,  HattieT 245.93 

Blester,  Wm.  H 21. 48 

Bo<;hine,  O 287. 10 

Bozelli.  Lotti 1,  088. 66 

Brogan  (k  Smith 19. 34 

Brown.  Geo.  W 128.  71 

Brown.  Jane  E 141. 99 

Bold  t.  G  eo.  C 2, 391 .  93 

Boughton.J.W 1,007.80 

Bortel,E.S 66.17 

Brolasky.M.S 325.76 

BrookfieJd,  L. P 770.91 

Brown.  Carrie  M 4. 48 

Broadbent.  Catharine 147. 03 

Bock,  Chas 65. 50 

Boyd.Jas.P 1,036.51 

Boner,  W.  H.,  &  Co 1:55. 40 

Brockway,C.  A 200.59 

Bodine.  E.  L.,atty 7.98 

liogan.John \ 227.69 

Brooks,  H.C 25.00 

Borden,  W,  Scott 47. 11 

Boyd,  A.  C 32.06 

Bowman.J.O 1,4.51.71 

Bousack.  Jas.  A 8, 617. 13 

Both  well.  Chas 167. 25 

Bonnet,  M.  E 2.96 

Bowles.  Susan  M 336. 88 

Boyd.  White  &  Co 689  81 

Boothe,W.G 21 

Bozane,  M.  G 2.  Oi 

Brown,  W 60 

Bowman,  W.  O 3.  gg 

Bozzell.  Chas.  W.,  &  Co 58. 14 

Bogau,M 79.07 

Bonnet.  Cha^*.  E.,  treas 2. 00 

Bosbysliell,  O.  C 4, 20O.  00 

BroAvn,  C.  A 4,  200. 00 

Bruce,  .lane  A 1, 085. 98 

Burke.  C 488.04 

Buist,  Jas 32. 85 

Burr.  Anna 104. 42 

Burdette.  R.  J 17. 65 

Blum.  Bros 24. 20 

Bunting,  S..  So»s  cfe  Co 6.272.30 

Buckley,  Wartl  &  Co 1.81 

Butler,  Geo.  W.  L 1. 12 

Burchard.  Henry 2. 48 

BiM'k,  Jane 2.  000.  Ou 

Brunner  &  Beis«lilag 6. 93 

Burke,  Jas 2. 97 

5.67 

34 

81.12 

1,3.98 

782. 42 

100.32 

4. 60 

204.72 

93 

414.91 
62.31 

9,  71 


,^.41 

\ 

i 

\ 

A 

h 

i' 

$160.  68 

*■ 

35 

158.86 

19.39 

8.6,3 

104. 13 

L50.98 

763.23 

) 

49.65 

- 

Brvan,  Jas.  (J.,  treas 

Challenger,  F.  E 

Chambers.  D 

Carr,Petor 

Cassatt ,  Mrs.  A.J 

Claik.  Fletcher 

Cartlege,  Thos.,  treas , 

Chandler  &  Sheets 

Clark,  W.E 

Clark,  Jane  B 

Crawford.  Robt..  jr 

Crawford,  M.  Estelle 

Crawford,  M.  M . 

Clayton,  John 

Craig,  John,  &  Sou 


-r  m 


342 


INVESTIGATION   OF   NATIONAL   BANKS. 


SOHEDUIJC  J.— In  aveount  with  the  Ketfatone  National  Bank  I'hHad^a.,  i5—.— Continued. 


:«i- 


Cariss.H.T $18.71 

Canipewell,  Ira  W 445. 60 

Chase,  K.  (J.,  &  Co 2.289.85 

Clark  Bros 44.58 

Chuiupion.  S,  E 34.68 

Canniuj£.  Letitia 97.  62 

(■lark,  F..  trea.H .  -•  ^'^ 

Campbell,  «1  i(hn 521. 15 

Clausen.  J.  K H2. 21 

CampbwU,  .lohu,  &  S«m 2G7. 61 

Craig,  David 1. 34 

Cramer,  Cha.s.  E 827.36 

Carr,Jolm  A 28.2:{ 

Cttttel.W.C 41.16 

CasselWrry,  CD 7.51 

(yhambers,  Mrs.  Jennie 36. 23 

Clark,  Wm.S 252.92 

Clausen.  J.  R..&  Son 1,908.93 

Camnbf  11,  Ja«.  A 2.86 

Cahill,  John  S 33.21 

Cha<lwiek,E.D 35. 5« 

Campbell,  Jos. H.,d&  Sons 289.38 

Chandler,R.G 76.20 

Carroll,  J.  S. ..•........•••••.. •••••••••  11 

Chapman,  .T.  L 3.07 

Chapiiif'iu,  M.  J 2.30 

Carpenter.  Constantino 22. 90 

Clare,F.M.,&  Co 2.74 

('rabtree,  Dorah  L 105. 00 

Carter,  Ida  M 53.39 

Canfleld  Mfg.  Co 6.24 

Cadwallader,  M.  P 10.00 

Clunal.erlain,E.M 1,706.92 

Chadliourne,  UaKleton  dc  Co 7. 44 

Clair,  J.  R 3.93 

Ca»8idy,.rohnP 101.92 

Clabau'jib.  M  rs.  E 327. 14 

Carpenter,  j:mma  R 31.32 

Central  Market  Co 3,3]2.:{6 

Chew,J.E 1,481.94 

CKJSSon,  (;eo.  V 32.50 

Cresson,  F.  E 1.81 

Central  Elee.Co 21.63 

Cresson,  M.B 239.56 

Cleverly,  H.  A 742.73 

Central  Sav.  Fund 25.430.90 

Crew,  A.R.R 11.31 

Chester.H.A 3.07 

Clifford,  S«-ott  &  Lawton 329. 94 

Clifford,  KvaM 82.59 

Crispell.H.S 5.85 

Conley,  (lOO.  J 25. 16 

Collier,  C.B 40.74 

Choate,  Chas.  A 412.54 

Connor  «fe  McQnaide .60 

Conrad  Bros 115.14 

Coxe,Jo8.  H 3,577.87 

Coppuck,M.M 161.83 

Clothier,  C.eo.  W 1,160.02 

Conley,  Chas.  C 387.30 

Cohen,  S.  Salis 8.90 

Cooper,  Jos.  E 35. 94 

Conley,  M.A 29. 26 

Consumers'  Marble  Co 40.  (H) 

Coogan,  Daniel 478. 92 

Cochran,  Henry  S 267.81 

Coates,  H.  C 291. 89 

Cotler,Jos.A .28 

Coward,  Henry 55. 64 

Commeroial  Ice  Co 173.61 

Clever,  A.J 63.19 

Combio  &,  Ferguson 14. 95 

Cottrelly,M 17.00 

Cooney,Jas.H 4,681.82 

Colwell,C.R 2.31 

Cooper,  Wm.B .19 

Cowling,  J.  T .18 

Cox,  Marv .45 

Cooney,l*.J 345.80 

Cooper,E.M 438.61 

Coxe,S.P 200.00 

Crump,Jobn 11,009,24 

Cmnmiugs,  Sam'l 7. 93 

Cummings,  John 9. 13 

C^irrie,  Anita E 61.95 

Crumlifi'e,  Geo.  D 239.25 


Crump,  (ieo.  A.,trea« $10,000.00 

Clyde,  John  J 21. 22 

Dalbey,  John  E.,trea8 1,124.87 

Dravton,  H.M 14.72 

Danagh,M.L .60 

Datcsman,  Cieo.  £ 10. 83 

Davi.s  &  Harvey 315, 93 

Davis,  F.  A 7,434.32 

Dalnios,  So])hie 1.83 

Drakti  &  Sti-atton , 26.  72 

Davv,S.K 13.69 

Drake,  W.  S 190.66 

DallHiy,  Jas.  E 1.  588. 3U 

Davis^  Ed.,  supt 345. 94 

Davis,  'los.  H 7. 49 

Dallas,  Thos 35.21 

Davis,  Wm.  J ^ .64 

Dakin  &  Petrv 214.29 

Davis,  F.  A.,  treas 1,724.55 

Darting,  Clias.  B 1 .  00 

D.ihv.  Maggie  P 1,100.00 

Dexter,  E.  M.  &  Co 370.12 

De  Laney,  J.J 491. 95 

Dean,H.L .51 

Degenberg  &  Gansert 743. 55 

Dearborn,  (Jeo.  E 4,216.78 

Dreka,  Louis 1,396.80 

Devlin,  P.  &F 654.75 

Denar,  T .95 

De'Lis.sa,  A.  S 169.  50 

Deacon,  Chas.  R 204.80 

DeGran,M.J 5.00 

Dean,  H.  L.  <fe  Co .81 

Devlin,  John 1,031.23 

Denny.C.W .99 

Drur,  W.P .45 

Dengler,  L.  J 551. 37 

Deneler,  Clias.,  sr 401. 27 

Dt'Hian.Jos 1,139.52 

Denkague  &.  Pennypacker 270. 08 

Deane,A.W 50.34 

Devall,C.W 1,585.23 

Dixon,  Ida  E 16.44 

Divine,  Wm.J .93 

Dillaghe,  Blanche 162.09 

Dixon,Sallie  W 426.37 

Dickson  <fc  Co.,  John 394.  ."ig 

Dixon.H.P 33.57 

Dixon,  H.  P.  dt  Co 924.57 

Dilkes,  (ieo 13.45( 

D'Invillier,  Ad 96.77 

Dixey,M.S 1.41 

Dixey,  Clias 1.41 

Driver,  John  M 11.77 

Driver.  Chas 2.00 

Dollord  &  Co 135.41 

Douglass,  M.  G .11 

Dore ,  1  )e8  i  re 1 29. 50 

Donn,A.  D 972.81 

Doughorty,  Pat 538.95 

Doh.rty, .1. P.  &  Co 498.33 

Dougherty,  Mrs.  A 11.87 

Doerr,  Chas.  A 354. 93 

Downing,  Stavel v  &.  Co 168. 37 

Dolbun,  Chas.  F.;  treas 2,2.30.98 

DuH^liee.  E.  S 500.00 

Dubosq,  Francis  P 130.04 

Dunn,  T.J.  4:  Co 2,552.79 

Dunseith,  Jas 13. 64 

Dutlv.Chas 460.22 

Dunn  &  Co 138.77 

Durham,  Martha 250.25 

Dye,C.R.C.,  magr 76.4H 

Emerson,  W.S 1.89 

Evans  &  Battles 6.03 

Erskine.M.O .75 

Emery,  F.  H 30. 91 

Ev;tn.s,M.E 500.80 

Edwards,  John  H 30.40 

Estel.John .57 

Evens,  L.H 4,160.62 

Kdmond,W.J 43.24 

Ebersole,  M.  F .28 

Ewiug,  Alice  B 108.64 

Ely,  Mrs.  L.  C. ............... ..........  4. 17 

Epiphany,  S.S 13.56 


INVESTIGATION    OF    NATIONAL    BANKS. 


343 


Schedule  J.— In  account  with  the  Keystone  Xational  Bank  PhiloiVa.,  i5—.— Continued. 


Engle,A.D $L50 

Ewing,Mrs.W.C 285.36 

Ewing,  Wm.  C 306. 98 

Esler,  Fred.  B L  46 

Earle,  Mrs.  B.  &  J.  V.,  treae 548. 70 

Eisenbeis,  Laura  J 3. 45 

Early,  Thos.  J 80.00 

Empire  Pub.  Co 104. 37 

Elwell,  Rachel  J.,  treas 169. 11 

Ecroyd,  R.  E 3. 69 

Escandell 45. 00 

Ellis.  Amos,  2d 128.62 

Edwards,  V 80.00 

Emery,  J.  E.,  prest 25. 00 

Farrell,Jas.E. 67.56 

Faulkner,  Mrs.  A 5. 54 

Fahy.E.  H 202.70 

Faulkman,A 2.91 

Fay,  Chas.  M 7.40 

Flannery-,  Eliza ^ 1.  39 

Faulkner,  M.B L50 

Fahv.Pat 317.26 

Farquhar.Jas -  89.22 

Farr.B.H 108.65 

Ferkeler,H 8.69 

Feller,D 465.47 

Fenn.Thos 135.68 

Ferguson,  R 105.74 

Feeney,  A.  A 4,175.81 

Ferguson.C  A 79.35 

Freeman,  Mrs.  E.  R 622.20 

Fen-ee,S.P.,  treas 1,643.87 

French,  Wm.D 765.86 

Freeman, Miss  A. C 300.00 

Freeman,  Miss  S.C 1,152.93 

Filley,Hovev  &  Son 431.81 

Fisl.er,  J.  M '. 350.14 

Finle  V,  J.  D 93. 63 

FlickingcH.W 125.41 

Filler,  C.H 6.79 

Fischer.  W.D 24.79 

Field,  Jos.  T 124.55 

Fitzgerald,  H 502.39 

Fitler,EmmaB 300.00 

Fischer,  Sarah  L 383.24 

Forbes,  Wm.S 1,239.55 

Ford,J.P 25.52 

Fox,t;eo 200.15 

Flower,  AnnieE 77.58 

Fox,Ivin 836.78 

Fox.Haniuih 1,039.92 

Frowert.  Chas.  G .45 

Fo.ster,  Sam'l  R 452.31 

Forepaugh,  John  A 719.32 

Fortescue,  Louis  P 416. 15 

Forsvthe,  Chas.  S 20.75 

Funey,Mr8.M L82 

F'urness,  Laura 12.17 

Fulloway,J.V 83.58 

Furness,  Jos.  F 42.15 

Furlong,  Jos 600.00 

Grav,H.W 4,380.41 

Gage,  J. Gilman 2.00 

Gravson,  Chas.  P 189.21 

Graham,  Sarah  C 9.50 

Grant,  H.M 14L96 

Granlees,  Mrs.  W.  J 2. 52 

Graham,  E.L 249.43 

Gray,  Jos 6.25 

Granlees.  W.J 43.41 

Gratz,  Walter 4.23 

Gallagher,  Mrs.  E 400.02 

Glaser,  Sam  S 373.61 

Gautsche,  H.,  &  Son 22.10 

Gray,Mary  E 184.57 

Garwoo<l,S.S 197.71 

Gardiner,  F.D 195.67 

Gallowav,  Wm 534.71 

Gallajgher,M 244.82 

Gaben, Geo. O.,  ir 172.86 

Gartland,  Mrs.  E 5.49 

Graves,  V.F 818.09 

Gray,  Mary  D 5.89 

Garrison,  l)avid  D 2,392.06 

Granlees,  Mrs.  H.  V 190.46 

Ga«kill,R.C 5.62 


Gi-anlees,  Robt.,  &,  Son $47. 00 

Graves,  O.B L80 

Graham,  Jos 452. 31 

Gallowav,  John  L » 772.08 

Graham,Hugh,  &Son 18.3.05 

Gardner.  R.  B.  G 17. 09 

Gr ay ,  H .  W ..  t  rea 8 2 ,  055. 00 

Gage,C.  A.S 289.30 

Gardiner.  Henry  A 12. 30 

Green-slit,  C.  AV 3.09 

Greiner.  J  os.  M 2;J8.  TO 

Gi-eavcf?,  E.  A • 785.47 

Gerke.J.A 6.a«> 

GeiTy,T.R 19.67 

Greer,John 514.18 

Glendenning,  H.  M 60.89 

Greenwell,  John 069.70 

Gerster,  Geo 25. 68 

Gei88e.L.W.C 7.61 

Gleason  <fc  Co 156.94 

Green, R. M.  &  Co 2,974.72 

Gerry,  L.G .52 

Gerard,  Mrs.  A.  L 22.81 

Green,  H 53.02 

Gregg,  M.L L69 

Greene,  Chaa.  S 239.15 

Geary,  Wm.  A 4.28 

Greer,David 276.69 

Grimm,  Louis 3.26 

Gilpin,  Richd.  W 139.64 

Gillison.  Christie  &  Co 794. 50 

Gibbon,R.Q 2,910.89 

Griffith,  J.  J. 60.76 

Givin,Wm.  J 767.65 

Gibson,  Tho.s.  J 2L75 

Givin,S.R 216.53 

Gilmore,  Jas 76.77 

Gilmore,J.C 1,484.38 

Gilchrist,  W.  W 783.82 

Gillan,S.H 3.01 

Griffith,  W.  S.,  &  Co 497.44 

Gilbert,  Mrs.  A.  L 27.77 

Gibson,  Mercer  E.,  mgr 412. 79 

Goble,  Erookfleld : 278.19 

Gould  &Fi8cher 576. 6:^ 

Glocker,  C.W 808.86 

Groves,  Wm 23.09 

Groves,  Wilson  G 1,389.99 

Grapengeiser,  Louis 20. 40 

Gross,  Herman 24. 23 

Godfrey,  Wm 1,051.6:{ 

Grcsswith,  Harry : 954.74 

Grossling,  Thos.  R 32.18 

Gordon,  K.  H.,  treas 96. 44 

Goodfellow,  Geo.,  &  Sons 258. 62 

Goldberg,  Dr.  M 9L67 

Guarantee  fund 275.00 

Gunnley,  Rob't 35.98 

Guyer,  H.  H 394. 29 

Grundv,Emma  F 551.24 

Grinkle.Paul .15 

Greide,  Pasquale 400.00 

Hammond,  L.  J 94.82 

Hall,Wm 238.06 

Hazzard,  Alex.  M.  D 20. 30 

Harris,  F.M 117.66 

Hagist,Jno 28.69 

Han,Wm.R 24.84 

Hall  and  Garrison 447.40 

Harman,J.C 13.99 

Harrison,  Kate  de  F 91.77 

Haines  and  Co.,  Gran V.  B 10,507.38 

Hall,Matthew 6.182.98 

Haldeman,  Mrs.  S.  D 5.00 

Hayden,Wm  587.84 

Hamilton,  Chas.  R 67.02 

Hansselman,  N 40. 40 

Hancock,  Son  &  Co.,  J .  18 

Hale,  Willis  G 15.97 

Hartman,  Louis  B 160. 64 

Halpln,Kose 390.91 

HaiTis  andCo.,T.M .38 

Hawkins,  F.H .14 

Harris,  Sam'l  C 09.34 

Harris,  F.W 657.68 

Hayes,  J.  Henry 2.09 


V(1 


■  I] 


344 


Investigation  of  national  banks. 


Schedule  J. — In  account  with  the  Keystone  National  Bank  PhUuiVa.,lS — . — C'outinuetl. 


i!  iir 


I     ;> 


V  I    u 


"'    i 


Hanan  &  Son $885.49 

Haves,  Chas.E 1,078.20 


Harris,  T.  M.,  and  Henderson 

Ha»H,  Constantine 

Hallowell  &  Co.,  C.  E 

Haig.  Andrew  H 

Harris,  \V.  Jno 

Ha/,ledine,  Jno , 

Hamilton, C.L 

Hankin,  £d 


856.39 
21.62 
88.19 
18.07 
11.00 

180.00 
52.07 

897  73 
Husse,  Lewis 1,303!  44 


51.54 

1.08 

336.13 

.62 

322.32 

14.84 

534.22 

Hetzfl,  G.  C. and  Co 6,471.88 


Helmbold,E.R. 

Heileg.E.C 

Henderson,  J.  D 

Hele,  Maiiha  D 

Heron  and  Kesbit 

Het  zel,  G.  C 

Heriug,W.E. 


8.63 

48.90 

.24 

537. 33 

56.37 

.  40.07 

294.00 

500.00 

19.25 

325.06 

54.84 

516.88 

72.59 

25.26 

96.26 

Hillborn.  Chas.,  Jr 1,152.44 


HendorsoTi,  S.  R 

Herold,  Chas.  P 

Hess,  Clark  T 

Hestonville,  M.  &,  F.  R.  B.  Co. 

Henry,N.S 

Herder  Cutlery  Co 

Heckeler,  Rosa  E 

Healey  and  Liepfer 

Hill,  Janiea  E 

Hildrath,Mary  H 

Hillmau.Kate,  Mrs 

Hinch,W.E 

Hitchcock.  "Wm 

Hinchcliff.G.D 

Hilliuian.  Jno.  F 


Hillebrand  H.,  treas 
Hinkley,  Jno.  F.,  treas 
Hiron.s,'Mi-s.  Mary  E  . . 

Hill,  P.  L.,  atty , 

Hicks,  Robt 

Hickman,  L.  M , 

Hills,  Sarah 

Howard,  E.C 

Holbrook.R.M 

Howard's  Sons,  J.  W. 


Hopper,  Maria 
Howell,  Francis  T  , 
Holland,  G.,m'g'r  . 

Horr,R.C 

Horr,C 

HoUis  &  Co.,  W.  T 

Hopkins,  G.W 

Horter,  L.  F 

Howe,  Frank,  Jr  . . , 
Hopkins,  Jas.  P  . . . 

Holler,  W.H 

Hood  &  Town  send  . 
Hopkins,  Mi-s.  K. . . 
HoDson,  G 


152. 21 

231.00 

.61 

219. 01 

.77 

132.68 

78.43 

168.52 

46.35 

1.24 

13.24 

23.91 

30.00 

180.00 

Hoffman,  Wm.  A 1,576.90 


Hoskius,  C.  P 
Howland,  Anna  C 

Hon«i,  (ieo.  S 

Hunter,  G.  M.  D. . 

Hudson,  J.  H 

Hunt,  W.  E 


Hnmrael,  A.  L 

"Huylers  "  [Harrison,  J.  G] 

Hunter,  Jno.,  agt , 

Hunter,  W.D 

Hunt  and  Eaton 

Hunt,  W.  P.,  treas 

Hussey  &  Son  Co 

Hyudmau,  Mrs.  G.  B 

Iversand  Pond  Piano  Co  ... 

Isaa(;s  &.  Co.,  Leon 

Ibacli,  Franklin 

Irwin,,!.  W 

iHgles.OttoE 

Irwin,  G.  M 

Irving  Pub.  Co  , 

Inter.  Society  of  W.  B 

J  ackson.  J .  T 

James,  T.L 


560.37 
369. 45 

32.41 
450.24 
470. 07 

46.31 
310. 62 
103.  39 
148.40 
855.17 
Horniukel,  H.  A 4,224.57 


15.42 

30.26 

352.50 

258. 05 

4.25 

15.68 

Huber,  Jno.T.,ex'r 1,332.94 

"  -  4  90 

402.93 

51.21 

20.00 

91.48 

402.  37 

18.85 

36.79 

154.74 

514.80 

46.40 

5.41 

.07 

4.29 

1.25 

270.00 

540.05 

75.85 


Jacobs,  G.  E 

James,  Frank 

Jewell,  G.  J 

JettVey,  G.W 

Jenks,  A.  S..  agt 

Jermou,  J.  G 

Johnson,  Jno.  C 

Jones,  Mary 

Jordan,  Jacob  R 

Jones,  J.  R 

Johnson,  H.C 

Jones,  W.  J 

Johnson,  S.  J 

Jones,  R.  C 

Jones,  Mary  H 

Jones,  James  H 

Jones,  W.  K 

Judge,  P 

Kanttman,  C 

Kabu,  Sam'l  M 

Kramer,  Wm.  J.,  agt 

Kampiere,  E 

Kampe,  F.  F.,  sr 

Kautmun,  Jos.  H 

Kaufman,  L.  S 

Kemble,  M.  V 

Kearney,  R 

Kennedy,  Jos.  P.,  est 

Kerse,  Henry 

Kendrick,  C.  H 

Kelly,  Thomas  J 

Kelly,  Thomas 

Kerr,  James 

Kevs,  H.  C,  treas 

Kendrick,  G.  W.,  jr 

Kelly,  Jno.  A 

Kelly,  Jno.  A.  &  Co 

Kern,  Lucy  A - . 

Keys,  Jno.  C 

Kelly,  E.J 

Keystone  MTg  Co 

Keckeler,  F.  F. 

Kennison,  V 

Kerlin,  J.H 

Keystone  M'fg  Co.,  "D.  F". 

Keutor,  Bruce  S 

Kellogg.  Carrie  J 

Kellogg,  A.  G 

Killian.  Isaac 

Kiltson,  Louis 

Kingsbury,  C.  A 

Kinimel,  M.  S 

Kirk  <fe  Collins 

Kriueruck  &.  T 

Kinney,  Jno 

King,  C.  P.  ScCo 

Kindried,  C.  F 

Kimniel ,  W 

King,  Wm 

Kolischer,  Tlieo 

Kushlaud  &  Stein 

Kochesperger,  C.  P 

Kolbe,  OttoF 

Kochersperger,  C 

Kolb,  Sarah  F , 

Kufjler,  C.H 

Kutz,  Henrietta 

Kugler,  G 

Kyle,  Berry  &  Co  (lim.) 

Laud,  E.  G 

Lamb,  Walt<jr 

Lautz,  M.  S 

Lamb.  Jas.  F 

Lauber.  Chas 

Laws,  J.  D. ,  &  Son 

Lafferty,  J.M 

Laird,  Agnes 

Lawrence,  G 

Laus(;b,  F.  A 

La  Roche  &  Stahl 

Lackenburg,  Ellen 

LaMent,  C 

Lewis,  J.E 

Lester,  F.  A 

Leonard,  L.  M 

Llewellyn,  W.  H 


$113.74 

55:{.  25 

85.33 

4U.  45 

184.88 

45.64 

326.  56 

439.  82 

16.24 

2, 149.  73 

590.53 

.25 

206.00 

80.  UO 

133.96 

788.19 

558.  00 

270.  24 

27. 62 

523.59 

169.27 

358.40 

12. 87 

24.45 

.39.96 

192. 48 

482. 09 

112.70 

1, 390. 30 

726.14 

1.43 

58. 51 

12, 177. 95 

6.69 

8.61 

485.37 

846.24 

:i9. 12 

1.076.11 

329. 92 

15.30 

121. 0(» 

10.00 

473.  (18 

13.49 

194. 02 

143.06 

311.40 

12.45 

2.07 

10L27 

176. 62 

3.78 

1,715.94 

49.60 

212.  38 

26.10 

17.80 

1,758.76 

284.02 

1,400.96 

13.00 

245.72 

46.00 

7. 05 

399. 13 

822.  M 

474. 12 

82.46 

1.62 

90.31 

6.94 

295. 56 

301.84 

727. 21 

403.81 

15.00 

100.00 

4.55 

147.79 

3J).00 

45.88 

112.03 

24.95 

.17 

1, 783. 79 


INVf^STIGATION   OF    NATIONAL    BANKS. 


345 


SniEDULE  J. — In  account  tvith  the  Keystone  National  Rank  PhilatVa.,  IS — . — Continued. 


/ 


LeFevre,  F.  A ^11.98 

Leskie,  H.  B 21.31 

Leidy,  Levis  C 19.38 

Lejambie,  H 79.49 

Lewis,  B.  F 137.25 

Lemon,  H.J 86.88 

LeMaittie,.H.  F 24.06 

Leonard,  M.  H 10.98 

Lentz,  H.  D 24.02 

LeConte,  R.  G 32.45 

Leopold,  H..  ir 6L68 

Lewis,  SarahC 255.21 

Lehman.  V.  B 25L70 

Legal  Tender  Frat'v 160.03 

Liberty  Lodge,  A.  P.  A 328.25 

Lingle,  J.  M 410.19 

Linford,  Chas 2.27 

Linergood  &  Lipscomb 121. 38 

Lilley,  James 474. 51 

Litzenburg,  C.H 5.01 

Linsley,  A.  B 140.61 

Lindsay,  Wm 500.00 

Libby,  C.  P.,  jr 500.00 

Logan,  Mary  P 122.94 

Love,  Jno 748. 67 

Long,  Jno 14.42 

Loutz,  KateS 75.35 

Long,  Mrs.  A.  W 14.12 

Lotti,  J.  &Co 10.50 

Long,  11.  H 14.48 

Looniis,  I.  L .65 

LockwfKxl.  F.N 158.21 

Longstreet,  J.  H 2.19 

Long,  Jas.  N 620.58 

Luces,  Saml.  &  Co 23L94 

Lucas.  Wm 107.94 

Ludy,  Hannali 157. 59 

Ludy,  Jacob 221.69 

Luft,  VV^alter  H 1,  567. 48 

Lynch,  Stephen 30. 29 

McArthur,  D 219.70 

MarlJride  &  Bro 2,05L21 

McBurneg.  David «.76 

McClane.  Wm 1,  717. 78 

M(;Cardle,  Jno 22. 79 

McCarthy.  Ellen 183. 00 

McCoulv,  Sarah 1.11 

McCallJames L747.41 

McCandiless  &  Co.,  W.  J 697. 70 

McCausland,  Wm 204.20 

McCarthy,  AV.B 2.9.') 

McCaulev,C.  R 30L42 

McCay  &  Co 247.  83 

McCaiill.  Jno.  A 199.98 

McCadden,J.  F., treas 158.30 

McClus,  J.  K.  &  Co.  (lim.) 685.56 

McCh'llan.  U.  W 334.82 

McCree<lv.  Jas 100.00 

McClincl'i,  Dan'l 2.00 

McCoy.A.  W 19.40 

McCohuii'k,  Jas 321. 34 

Mc(;ormick,  L 42. 11 

Mac(;onnell,  A.  A 172. 6;{ 

Mc(;.)rmi(k  H.  Mch.  Co 5,736.66 

McCo V .  ( ' lias 25. 07 

McCoach.  Wm    535.  28 

MacCoy,  E.  1 25.00 

McCullen.  J.  P 71.02 

McCiiiie,  K 28.  21 

McDermott.  J 5.  60 

McDimaJd.J     2.62 

Mc  Faddi'u,  C,  jr 108. 40 

McFa<lden,  C 2, 972. 40 

Mc(iIade,C 49.38 

Mctiarry,  F .399.06 

Mc(  J  lathery,  F.  D 2.68 

M  c(  Hrr,  J.J 542. 23 

McGillian.  Wm 5. 00 

McGinty,C 812.50 

McGowan,  D 311. 96 

McGough,  H 800.00 

MctJnnkin  &  Bro.,  J 4,143.66 

McHenry,  J l,  476.  28 

McHugh,  H 5,761.39 

Mcllvain,  E.  E 11.53 

McKee.Sam'l 859.78 


j  McKee  Bros $4. 71 

'   McKinnev.J 24.85 

I   McLaughlin,  W 374.18 

I   McLaughlin,  J 297. 28 

j  McLaughlin,  Geo.  H 7.19 

!  McLaughlin,  Wm.,  iu  T.  B.  O'Donnell. .  411. 95 

j  McLaughlin,  Neil 1.76 

McLaughlin,  Thomas 18.13 

I   McLear  &  Kendall 701. 20 

j   McMaster,J.  B 211.77 

McMenourg,  K.  L 316. 42 

i  McMenourg  &  Co 34. 23 

I  McMichael,  L 1.65 

j   McNamara,  P 161.51 

1   McNichol,  Andy :J00.  00 

i   McShane  &  Lati'erty 402.  57 

I  McWalter,W.J 31.08 

i   Marks,  E.N 28.39 

i   Martin,H .51.93 

Maltbv,L.W 109.20 

Marcy,L.J 628.27 

i  Martin,  Clara  V .5.91 

Marshall,  And 1,757.99 

I  Manning,H 45.11 

!  Maloney,E.F 91.82 

I  Madden,  Jos 1U8. 59 

'   MainBelt'gCo 18,18 

j   Matson  &  Dilkes 1,428.34 

\  Mahaney.Kate .'AXI.  00 

!  Malone,  R.  A i:w.93 

Marsh,  C.J ;{2.  32 

,  Maekie.  MaryF .19 

Maron,  A.C 70.68 

Martin,  E.  J 125. 80 

Mann. David 27.47 

Madden,  A.  S.  Cath 398.20 

Maishall,  G.  M 464. 3.') 

Marsh,  J .  R 28.').  75 

Madden,  P.J 1, 345. 63 

Martin  &  Martin 277.  56 

Maguire.  R.  M 13.  37 

Manney,H.  N 150.66 

Maher,  Edw 200.00 

Maltbie,  L.  D 165.37 

Machatti,  A 50,  00 

Mershon.  A.  H.,  trust .17 

Megonigal.  Wm 1, 101. 99 

Meyer,  H 307.67 

Meehan,  P 533.32 

Meloney,C.  P 153.32 

Meams,  S.  J 325. 00 

Miller,  .L  R i.61 

Miller,  Richard 2, 166. 96 

Huber,  John  Y.,  Co 1, 748. 26 

Michener,  E.  P 4.26 

Milner,  Sarah  J 1.52 

Mink  T.  A .37.68 

Mills,  C.K 98  11 

Mitchell,  F.  A 17. 49 

Minton.T.J 630.71 

Miller,  C.H 1, 757. 64 

Milligan  &  Bro 1,  783. 13 

Miller,  W.  R 15. 22 

M  iller,  M 130. 79 

Miller,  P 13.3.  OC 

Moseley,  E 1, 0.32. 38 

MoiTi8,S.L 12.39 

Morris,  Wm.H 1,359.57 

Morris,  W.R 6(k).00 

Morrison.  A 200. 93 

Monroe,Jno 161.98 

Moore,  A.  H 7,000.99 

Mooney .  Mary 44.  71 

Aloonev,  T.  J 7&5. 82 

Montefins,  H.  T 118. 37 

Montelius,  Abbey  S 322. 96 

Mooney.  Sarah  S 450. 00 

Morazzie,  A 235. 84 

Moore,  T.H 89.41 

Mooney.  B 281.50 

Moore,' Jno.  A 1. 73 

Morrison ,  C.  W 1, 393. 27 

:Moore,  Alex 329. 00 

Mori,  AmeliaE 29.67 

Moore,Edw.,jr 1.19.41 

Morris,  P 46.23 


i\ 


i       ■ 

i 


■t' 


346  INVESTIGATION   QF   NATIONAL   BANKS. 

* 

SciiKDi-'LE  J. — III  accoiitihrith  the  Keynione  Xatioiial  Bank  Pltilad'a.,18 — — Continued, 


INVESTIGATION   OF    NATIONAL    BANKS. 


347 


Schedule  J.—Inaeco»nt  with  the Keysione National  Hank  VUHad'a.,  /.s'— .— CfHitinned. 


.. 


HI 


I'  ^ 


\  B* 


W' 


k} 


Morelv,B.F $20.00 

Morsell,  Rev.  W.  F".  C 67.17 

Mniller,  Julius 298.86 

Murphy,  E.  B 28. 00 

Murphy,  Wm.  R 526. 15 

Murray  &  Wilson 2,067.47 

Munyon,  J.  M 3. 45 

Muut'e,  S.  F <...... 44. 29 

Murney,  M.  M 65.65 

Murphy, R.D '74 

Mutual  L.  Co 891.48 

Mullen,  M.C 37.05 

Murphy.W 791.50 

Mullen.G 225.00 

Myers,  Jacob 1,  708.33 

Nace  and  Swarthy 1,238.75 

Nagle,Cath 93 

Kaulty,  Wm.P 245.95 

Newell  &Bro.,  Wm 5,105.91 

NelHou,  Jno 90. 31 

Newton,  J  no.  S 98.25 

Newton,  C.  C 4,648.35 

Nesniitb,  F.E 543.23 

Nell,  E.J 86.87 

Neely,Ethel 97.75 

Nichols,  D.  P.  S 87.61 

Nixon  &,  Zimmerman 33.30 

Northop.  Isabel 5.02 

Norri8,Mi8s  Clara 2. 16 

Nofer,  F.U 280.59 

Noble,  Robert 3.  .50 

Norris,  Marie  L 84.94 

Nolan,  Johnston 50.20 

Noblet&  Co.,  !>.&  J.C 921.13 

Noblet,  J.  C.  &  Dill 98.48 

Noblet,  J.C 05 

Ojjden.Saml.M 64.46 

O'Neill,  Jno , 328.85 

O'Neill,  Pat 4,943.32 

O'Neill,  Chaa 664.46 

Oliver,  G.W 151.34 

Oliver,  M 82.22 

Ogaen,R.C 216.02 

Osborne,  D.  M.,  &  Co 8.434.i57 

Opi)enheimer.  B 274.79 

Otis  Jiros.  <fc  Co 19. 89 

Orme.C.E 4.08 

Ogdeu,  E.  C.  H 2.08 

O.  S.  I.  Dyeing  Est 275.42 

O'Brien,  J,  J 369.31 

OKourke,M 2.35 

O'Brien,  F.K 5.00 

Ogden,  Jno .48 

Otis,  J.  G .83 

Wanamaker,  Jno 1,983.77 

Petty  balances 5,694.80 

City". 600,606.65 

Palm,E.F 2.14 

Palace  Stable  Co 196.98 

Partridge  &Co.,  C.  D 1,075.00 

Paden.M.M 41.14 

Prandi,  Mme.  V 85.64 

Painter,  John  R 29.02 

Patton,  Kobt.  H 336.87 

Pla,Kosinne 1.78 

Piatt,  H.H 1,387.66 

Parke.  G 1.64 

Painter.G.M 184.95 

Patin,D 74.67 

Parker,  Thos 67.00 

Pa.Com.K.G.E 5.00 

Payne,  Wm 5.18 

Parahlev,J.H 25.54 

Paine,  Diehl  &  Co 541.98 

Patterson,  W.  R 300.00 

Penn  Rooting  Co 3.92 

Pe<ldicord,  Chits.  H 206.99 

Penn  Granite  Co 55.49 

Penna.Rent  Co 30.65 

Pennypacker,  H.  C 1. 84 

Pettit,  \\.  S.. •..•••-...•••. .............  «.  vO 

Penrose,  W.  E 2. 88 

Perkins,  Helen  C 48.25 

Perkins,  (I.  H 83.26 

Pre8.Pub.Co 660.99 

Pierce,  Thos.M 20.25 


Pemberton,  M.  F *590.19 

Pepper.A.C 3.33 

PepiHM-,J.W 736.57 

Presser,  Theo 68.  .>4 

Preston,  Geo.  R 37.  70 

Perry,Helen  B 30.88 

Peter.son,  Peter 4 1 .  33 

Preston,  Kdiuond,  jr ."»9. 91 

Pickop.  Elibabeth 475. 00 

Pinola  Remedy  Co .76 

Phillips,  C.  C  .*. 13. 70 

Phila.  Towel  Supply 1 ,  057.  8.-i 

Pierson,  A.  T  2.  «"J 

Pine,  Jennie Ji.'»<) 

X  I'lCKCl'T'i  lafi  .•••••••••••-•••••>>>*••••  o«ri  J  •  t>H 

X  IK^^  tJ  uo  ..•>■■••.•«•  >••••••>*•••■••••••  oH.  I  ■« 

Price.  (J.  B 7.^.03 

Pioneer  Build.  Assn 463.  17 

Pliillips.  J.  1 7.  07 

Portnondo,  V 1,418. 03 

Pope.  Jcdin  W .61 

Poutterer,  B.  M .').  00 

Poutterer.  M.  A 182.45 

Powell.  Wm.W 10:J.XI 

Popp.J.J.F .MH> 

Pooley  Bros 851.36 

Potts,  Mrs.  K.  M 1.  .*>0 

Potter.  Geo.  C,  &  Co 51. 70 

Porter,  Chas.  M 244.88 

Porter,  Julia  H 20.09 

Potter,JohnE.,  d:Co 307.57 

Portnondo.  J.  F 7,  538.  .'VB 

Pond,  J.  B 3.24 

Plow  man,  Geo.,  Co 243. 49 

Pyle,  Katie  H.  B 31.0*2 

Pyle,JoluiJ 566.32 

Quick,  C.W 94.18 

Quick,  IMiilip 10U.(M> 

Quiun,  Mary  S 132. 99 

Rand,  Maiv  W 46.32 

Puimsdell, .Y.  G 1,445.G.'> 

Rainey,Ja8 27,61 

Ranck,  Annie  M 30.00 

Raymond.  W.S 7.98 

Ralim,E.C 74. 9J 

Rawle.C.C 8.  C8 

Racine  WagonCo 488. 1« 

Randolph,  Mrs.  H.  li .'>.  75 

Rambo.E.A 69.29 

Rafsnyder.  Fxlwin 308.92 

Raymond.  C.W 140.85 

Raiiisev,  J .  S 328.  09 

Reed,  i-Yank 52.40 

Reed,  Thos.  B 93.55 

Rees,  C.  B..  Sons  &  Co 2,185.73 

Reynolds,  J.  &  Son 521.07 

Reeves,  A.  A 3.  :i7 

Reed.C.E 24.5.00 

Reilly,  Wm.  A 531.98 

Rennard,  Airs.  M.  A \ 37.73 

Reckefus,  A.  A 378. 26 

Reeves.M.S 68.07 

Reichard,  Mrs.  A l.U 

Rees.F.S..  tresis 44.48 

Reichert.  Emma  R 7.18 

Reed.  MrH.  K.C 12.57 

Relief  Fund,  Araitie 1, 796. 35 

Reillv,  H 6.56 

Reiszner.F 7.08 

Reilly,  Thomas 24.38 

Reinhardt.  S«-villa 76.  24 

Repplier,  Mary 95.  00 

Reizler,()tlo 48.44 

Ritson.  Robt 116.25 

Richmond,  E.  C,  Co 2,445.78 

KiHhel,A.C 614.97 

Ribble,  W 184.30 

Ridings,  P.J 34.88 

Ricketts,L 93.25 

Richards.  F.  Do  B 1.'39 

Righter  &  Gibson 573.92 

Richmond,  E.  C,  agt 4.31 

Ridley  Pk.  Cold  Spgs.  Water  Co 618. 49 

Richihond,  Jas "...  4.84 

Riddle,  W 286.32 

Ri8hel,A.C.,mgr 3.31 


I 


/ 


■I-  ♦< 


RisheU,J.D.,  &  Co $499.61 

Ro<len,  H.  G 1. 58 

Rogers,  Sarah 250.  00 

Rothingatter  &,  Dillon 429. 29 

Rockhill,  A.C 569.65 

Robinson,  L.  M 61. 88 

Robinson.  John 506. 37 

Rodney,  C.H 35.83 

Roney,  C.  E..  treae 316.28 

Rol>ert8,  J.R.Evan8 505.30 

Root,  A.  P 79.70 

Rothschild,  J.,  &  Co 672.46 

Rothe,Mrs.J.  E 57.00 

Rogers,  J.  H..jr 19.00 

Rochefoitl.J.L 1,035.00 

Ro))ert8,G.W 3,395.16 

Ruppert,  Maud IW-  53 

Ruppert,J.H 75.00 

Russell,  D.&  J 500.15 

Rudhart,  A.  G 62. 91 

Ru88ell,G.R 104.50 

Russell.  R.P 9-74 

Rutherford.  J .45 

Swavne  &.  Wagner 2. 76 

Sanfcey,6.R 6.94 

Stant  sowitch ,  A IIG.  98 

S  way  ne,  J 17. 20 

Stang.G - 1,637.20 

Stang,M 157.69 

Stang.Aug 925.92 

Salter,  J.G 597.09 

Salterthwait,  B 709.63 

Schatter,  C.  T 26.41 

Scattergoo<i.  Mrs.  G 636.42 

Scattergoo«l,  G 3, 383. 38 

Shaw,  J.  A 270.19 

Scattergood,  C 3.35.78 

Sager,M 410.00 

Sanborn,  I'.  A .10 

Staples,  H 232.98 

Sajons,  C.  E 18. 86 

Sharrott,  Wm.H 293.95 

Sharp,B.H 1,450.81 

Savidge.A.H 6.36 

Sanford,G.A 3.87 

Stanhope,  J.  B 32.42 

Sayers,  A.B .70 

Saiil,  Mowbray ,  126.27 

Sharpc,  J.  G.,  M.  D 1, 195.05 

Stanley, Bradley  Co 156.85 

St Anko witch,  Emily 78.53 

Sanford.W 100.69 

Saline.  C.  S.,  treas 21.32 

Strawbridge -. 49.25 

Shane  Bros 357.56 

Sternberg.C 574.87 

Sheible.Wm 2.02 

SeaGirt  L.&I.Co 65.80 

Stetser,  W.H 128.68 

Steele.  R.W 137.25 

Steele,  Robt 2,206.98 

Steel  &  Hill 727.32 

Schermerhom,  L.  G 147.01 

Sweeney  &  Cunningham 397. 03 

Smedley,  Sam'l 419.29 

Stretch 27.39 

Sterner,  E.Y 34.62 

Sweating.  T.H 291.35 

Shellenberger.  C.  W 585.^83 

Shrove,  V.C 10.00 

Siddons.  J..  Sons 5.91 

Stephens,  Cooper  &.  Co 5.68 

Street,  A.  M 98. 83 

Seiser.B 200.87 

Steel,F 112.12 

Seinor,Jo88 33.37 

Steel.  Theo 159.  .50 

Sheatz.JohnO 424.52 

Steel.  L.  C 2. 22 

Stern,  Mat 39.41 

Stevens,  A.F 1,573.17 

Skerrett.K.G 89.72 

Spear,  Annie  F.  A 10.16 

Sevmour,E.C 305.40 

Steel, DavisW 85.88 

Schermerhorn,  C.  H 2,096.62 


Schmellick.Paul.., $t.80 

Steel.Jas f 63.33 

Steel.  Lourane  C 2, 478.  7.5 

Sewell.  Mary  A 1.05i».  o» 

Sheffield.  O .  "8 

Smith,  M.  C 25.  (hi 

Schinpclt.  Julius 5.00(».00 

Shirley.  G.  W 78. 72 

Sliker"  Rufus .04 

Smith,  (].  H 31.. 58 

Smith,  F.  A .19 

Smith.  Mrs.  A .  A 72. 63 

Smith, A. J 468.81 

Smith.  Josephine  B 4.5. 00 

Smith.  Walter  B 40. 30 

Smith.R 1.07 

Siegert.  B.  F 51.  20 

Siggons,  L.  K !.««> 

Siggons.  M.  H 21. 00 

Simmons.  AV.  J 16. 80 

Simons.  ( ;.  1.  &  CJ.R 5. .59 

Sj»ittall,  Goo.  P .91 

Shicl<ls.  Kd w 400. 00 

Strickland,  Wm 6.00 

Simmons,  Mary  C 381. 63 

Smith  HenricttaH 440.05 

Simpson  &  M 299.07 

Simpson,  A.  S 4.  72 

Siner,  John 26. 51 

Smith,H.H 1.42 

Smith,  S.Anna 37.  55 

Springman, G.  H 8.5.3:^ 

Skillman,  M.  L 7.  20 

Sidebottom,  Wm 74.  60 

Spg.  Lake  Beach  Co 105.78 

Smith,  Edw.E 102.00 

Smith,  Grace  F .87 

Simpson,  E.P 136.25 

Stiteler,  R.  D 2.00 

Skillern,  S.  H 200. 00 

Scott,  J.  F 41.72 

Scholf.H.  K 259.30 

Schofield,  Eliza  H 9.20 

Stokes,  Clayton 751. 29 

Savy,L.  B 394.08 

Stone,  S ^ 49. 46 

St  okes,  R 1.39 

Stout,  Jas 348.  95 

Si'hoolman,  C.  T 701. 87 

Shoemaker,  J.  K 87.  37 

Stall,  Wm.,,)r 1,20.3.93 

Strout,  C.  H 33. 99 

Scott,Mary 200.00 

Stacks,  F.E 581.57 

Shoemaker,  S.  B 37. 74 

Sollers  Shoe  M'fg  Co 42. 65 

Showell&F 460.35 

Stoke8,Mr8.  S.S 186.64 

Solomon,  Herman 400.00 

Supirt,  Francois 40. 42 

Supreme  League  G.  L 1, 071. 34 

Suphe.H.T 26.56 

Summers,  C.  A.,  treas 13. 16 

Stull,  G.  W.,  treas 153.67 

Sfinire-s,  John  E 10.47 

Schultz,  A.G 210.19 

StulLG.W 3.28 

Summers,  G.W 248.31 

Smvthe,  A 563.82 

Snyder,  Emily 265.50 

Snyder,  J.  F 415.89 

Snyder,  A.  P 407. 76 

Taylor.I.F 80.18 

Taylor,  John  B 19.32 

Taylor,  Edw,  J.,  treas 100. 84 

Taylor,  L,  &  Son 42.27 

Tra8b8,A.K.P 4.04 

Twoddell,J.P 342.67 

Todd,  J.  Liberty 19. 66 

The  W.  Order  ()o.  Operation 440.  73 

The  Harvey  Fillev  Co 173.95 

The Haverick  Co.' 666.87 

The  Bird P't'g  Co 96.81 

The  Homeopathic  Physician 102. 77 

The  Excelsior  Hosiery  Co 15. 44 

The  Mutual  B'k'g  Co 21,18L88 


n 


348 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTiGAUON   OF    NATIONAL    BANKS. 


349 


SCHKDi'LK  J. — In  account  with  the  Keyaton4^.  National  Banl  PhilafT a.,  M'— .— -Coiitiniiea. 


I'  ti 


i    ^\ 


•  •  •  •  • 


The  MillM'anl  Cracker  Co .... 

Tlie  Kelsev  Jiatlj  Co 

The  Prov/Gas  Co 

The  Singer  M'f  g  Co 

The  Dairymen  Supply  Co 

The  Fire  Ex.  Co.  ot  America 

The  Phila.  Carriage  and  Harness 

Thegan,Wm 

The  So.  12th  St.  R.  E.  Co 

The  Phila.  Bond  and  Invest.  Co  . . 

The  Draker  &  Stratton  Co 

Tiedemann,  H 

Tighe.JohnH 

Tribon.D.H 

Tieniey,  T.  F 

Twibill.T.P 

Thomas,  R.  R.,  &  Co 

Thomas,  A.  S 

Thomas,  C.W 

Thompson,  E.  H 

Thompson,  John 

Thorp,  J.  S 

Tappin,  R.M 

Torr.C.C 

Thorn.  Wra 

Thompson,  J.  R 

Town,  Mrs.  F.G 

Thompson,  J.  B 

Torr,  \Vm.S 

Talan,  C 

Thorn,  K.R 

Thomas.  M.,  &  Sons 

TupiK'u,.!.  P 

Turner,. I.  F 

Turner.  i\ , 

Turner,  E.  A 

Turnluill.  C.  S 

T II  rner,  H.  M 

Try  mhy,  E.  D 

Tyndale  &  Mitj-hell , 

Trydav,  W , 

Trymhy,  Hunt  &  Co 

W.  S.  'ITiermoiiu'ter  Co 

I'nion  Credit  Co ',', 

UtTord,  Eugene 

UlMir.G.W 

Van  Beil.  H.,pre8 

Vaii  Beil,  H.,  A  Co 

Van  Lear,  J.  K.,Jr , 

Vount,  Miss  L ,,,. 

Van  Lear,  Li/zie 

Valette,  W.  H 

Van  Gunden,  C 

Vail,L.F 

Vemer,  S 

yieweg,Geo.H .'.'.*.* 

Viennot,.LJ 

Vogel,Theo 

WainvvriL'ht,  E.  M 

Wanamaker,  ex.ac 

Wanamaker  &.  Brown 

Wanamaker,  M .  S ].*.*." 

Wanamaker,  Thos.  B 

Warwick  &  Co 

Wallace,  Wm.  W 

Wat.son,  P 

WaUlraven,  LE 

Waples,E.  B 

Warner,  W.  R.,  &  Co 

Walker,E.H... 

Walker,  J 

Wall8,J.W.,M.D 

Warrick,  Wm 

Walsh,  L.W 

Wagner,  A 

Warne.M.E 

Wain,  CM 

Watt  A  Leetlom 

Wanamaker  &  Fernanda 

Ward,J.W.,&Co 

Walton.  F.M.,&  Co 

Wanamaker,  L.  R 

Wall&Ochs 

Watts,  G.AV 

Warner,  W.  B.,  »gt 

Total  incidental  deitosits,  $1,300,513.07, 


$37.49 
89.41 
818. 22 
.    3,280.31 
770. 41 
14. 67 
46.64 
L96 
63.27 
.    8, 910. 00 
596.83 
161.06 
121. 45 
10. 93 
1.66 
.20 
2, 225. 34 
127. 44 
464.62 
234.73 
233.97 
5.30 
1,500.00 
932.07 
9.38 
38.16 
105. 14 
170. 98 
1, 395. 89 
602.08 
78L00 
239. 90 
276. 53 
111.58 
401.  39 
56.90 
41.40 
487.00 
.29 
665.89 
121. 41 
2,018.14 
119.92 
6.08 
70.51 
.46 
510. 41 
3, 949. 84 
93.63 
175. 52 
789.58 
2.09 
335.51 
56.96 
299.27 
2.22 
40.03 
7.07 
175.37 
42L34 
2,  959. 64 
9.86 
110.81 
16.86 
12.89 
162.80 
460.28 
91.11 
864.00 
70.69 
56.37 
2.25 
3.31 
76.66 
26.98 
2:{6. 07 
96.60 
190.88 
20.12 
322. 13 
1,  736. 87 
47.68 
822.57 
345.70 
14L97 


Walsli,N.J $0.04 

Wanl,  EmmaM 35  10 

Ward,Mrs.H.E 6!25 

Wayne  St«ne  Co 104  :{7 

Waite&Hills "  179'9.5 

Walsh,  J.M.,  &  Co 117.68 

Watt,  J.  C. ,  treas ] ,  1 0  89 

Watson,  J.  T .15 

Watson.C.M 15 

Warver  W.Y ;.:;;;;  1,010! 74 

Wee«i  Geo.S 488.59 

Wheehr.S.  W 1,644.07 

Weiner,  M.  H 12 

Whetstone,  M.  G 42^  88 

Welster.H.C ,8:«6 

Wendell  &  Smith via  «»•» 

Weber.C.P .,  i5 

Weber. H  J. /..  joii'jl 

Weaver,  S.  R g  40 

Wertz,D  A *.  52:00 

Weaver.  W 81 

Wetherill,  A .  L ........!  379  :{7 

Wernicke,  H *(;.> 

West  Pha.  Brick  Co '.'.'.'.'.'.'.'.'.  34447 

Wenger.J.  E 4^78 

Webb,  Judson  C ',\\\  7.')0  OO 

Wells,  George  B ....'.'.'.  177  67 

Williams,  H.  W 667  0.*} 

Wilson,  Jacob ]  947'  '>9 

Wilson,  J.  Dale .,',  T.iri 

Wilson,  J.  C -xa  or, 

wiww.T , :::::::::::  2^2:15 

Wilson.M .  i«o  •vt 


Wilcox  &  Gibbs 

Wiley,  MyraC 

Whitney,  Fannie  K 

WilhMighby,  Wm.M... 
WiUv.ll.  M 

Wright,  H.  C,  agt 

Whittv,  W.  H  . .! 

White,  LK.,nigr 

Wilbour,  J.  A 

Wilkinson.  J 

Williams,  J.  K 

Wills,  D 

Wiltbank,Z.M 

Writ,M.S 

Wiley,J.H 

Wittenmeyer,  A 


49'J.  86 

320. 03 

LV).  11 

2.40 

310.95 

1.25 

84.09 

12.50 

1,  995.  28 

96.77 

1,532.53 

479.93 

48.52 

39. 36 

10.57 

Whitaker.  Mary  E ' 9ai\  ca 

Whitehead,  Wra 

Wieder,  A 

White,Johu  R , 

Wilner  Dental  Co , 

Whitnmn  &  Son , 

White,  Smitli  Co 

Wilson,  LM.,  agt , 

Whittier,Wm.W 

Whitman  &.  Son's  Factory  ... 

Whitaker,H.H 

Whitby.G.G 

W ilson .  E.  I 

Wood,  Wm.  B 

Walford,  W.S 

Women's  Silk  Culture 

Wo<m1s,  Robt 

Woods,  J.  J 

Wotxl,  Mrs.  M.  R 

Wolff,  L.M.D 

Workman,  E.  S 

WotMlward,  Mrs.  J 

Wowl,  Geo.  A 

Wolfe,  Annie  E 

Worthington,  J.  C 

Wyeth,.r  West  town 

Wyetli,J.,Philada 

Yeath  Ac  Trott 

Young,  Eph 

Young,  Robt 

Young,  Thos.  S 

Young,  Jas.P 

Young,  John 

Zeckwer,  Rich'd 

Trans,  collections . .  I 

Petty  balances 


•»••«■**■ 


1.59 

17.20 

68.42 

11.  20 

800.71 

158.91 

3.78 

.69 

6,517.50 

32. 83 

83.63 

5.15 

466.87 

25.49 

166.67 

623. 82 

498.11 

95.65 

430. 13 

.60 

2.50 

95.12 

133. 79 

4.:i5 

93.  80 

62.49 

847.  73 

9.64 

1, 129. 43 

310.71 

150.01 

6, 248. 04 

471.95 

4, 533. 46 

1,  757. 06 


SCHEDULB  K. — Amount  due  to  hanks  March  20^  1891, 

liabilihes. 

First  National  Bank,  Batavia  N.  Y $949. .% 

Carolina  Savings  Bank,  Charleston,  S.  C !.!!!!!!  14?!  86 

Washington  National  Bank,  N.  Y 3  890. 96 

Reed,  McGrann  &  Co.,  Lancaster,  Pa '  42l!  81 

Manayunk,  Phila.  Manayunk  Bank 1  074. 94 

First  National  Bank,  Norristown,  Pa V.'.V.'.'.'.V.  'l25.00 

Steelton  National  Bank,  Steelton,  Pa ...\  419!88 

Crane,  Parris  &  Co.,  Washington  D.C ........!'!!!!!!!  2  6ob!25 

Chester  National  Bank '.''.'.'.'.'.'.'.'.'.  '     2!  .56 

i^econd  National  Bank,  N.  Y 4'  no.  77 

13, 743. 49 

In  a.  m.  3.20,  remittances  of  $125  in  exce.ss  of  amonnt  due  by  Nonistown  was  re- 
ceived and  entered  into  cash,  that  am't  being  in  payment  for  collection  item  which 
had  not  yet  been  charged  to  Norristown,  but  would  have  been  later  in  the  day, 
hence  ac.  now  shows  that  acct.  with  Norristown  is  squared. 

H.  C.  J» 


Schedule  Ij.— Certificates  of  deposit  outstanding  March  20,  1891, 


No. 


585 $50.00 

882 500.00 

931 600.00 

1026 180.00 

1509 390.00 

No  number 105.18 

1560 261.23 

1631 165.00 

1658 50.00 

1980 25.00 

2345 20.00 


No.  2370 $25.00 

2385 300.50 

2473 500.00 

2749 • 4,000.00 

2776 300.00 

2784 :,.,,  200.00 

2786 100.00 

2791 200.00 


7, 971. 91 


Schedule  M. — Collections  made  by  banks  for  account  of  depositors. 


1891. 
Mar.  20 


Mar.  21 


iW^ 


Mar.  23 


H.  Van  Beil  &  Co 

H.Van  Beil  fc  Co 

Ivors  &  Pond  Piano  Co 

V.  Portuondo 

S.  W.  Whitman  &  Son 

J.  F.  Portuondo 

H.  W.  ifray,  treas 

R.W.Greene  &  Co 

Louis  Dreka 

Mutual  Banking  Co 

McCorraick  Harvesting  M.  Co. 
Mrs.  Garrett  Little  (transient) 
McCormick  Harvesting  M.  Co. 

H.  W.  Gray,  treas 

S.F.  Whitman  &  Son 

V.  Portuondo 

Mutual  Banking  Co 

Robt.  Steele 

J.  F.  Portuondo 

H.W.  Gray 

Jno.  W.  Boughton 

Louis  Dreka 

Jos.  H.  Cox 

H.Van  Beil  &  Co 

Mutual  Banking  Co 

Mutual  Banking  Co 

Paine,  Diehl  &  Co 
Paine,  Diehl  4;  Co 

Robt.  Steel 

Robt.  Steel 


»••••■•< 


McGlade,  Camden 

Hankins,  Chicago 

WoLsifer,  Camden 

Hermanee,  Chicago 

Rudolph  &  Bsuier,  Chicago 

Meyer  «fe  Son,  Chicago 

Sowers,  Chicago 

Peckham,  Boston 

Greenough  &.  Co..  Boston 

Conklin,  Cha.se,  N.  Y 

Moyer  &  Tyson.  Norristown 

Thompson,  Camden , 

Kooker,  Camden 

Riggs,  Chicago 

Mcredian  Candy  Co.,  Chicago 

Hart,  Chicago 

Pacific  R.  R.  Co.,  Chicago 

Short  &  Forraan,  Chicago 

Mayer  &  Dill,  Chicago 

Mcintosh,  Chicago 

Currier,  Chicago 

Jones  &  Co.,  Chicago 

Kulp,  Lancaster 

Thatcher,  West  Chester 

Kaighn,  Camden 

Pratt,  Chase,  N.  Y 

ArkeU  &  Douglass,  Chase,  N.  Y . . . 

Peabody  &  Co.,  Chase,  N.  Y 

Palmer,  Batavia 

Slater,  Batavia 


« 

$32. 80 

;{31.70 

-•/■-• 

8.1.10 

17.50 

29.00 

48.00 

16.05 

12.54 

15.00 

500.00 

125.  GO 

10.00 

100.00 

10.10 

49.85 

29.90 

441.40 

48.00 

33.00 

100.00 

35.00 

15.00 

64.33 

19.90 

150.00 

150.00 

9.83 

12.50 

63.38 

63.38 

^1 


350 


INVESTIGATION   OF   NATIONAL   BANKS. 


Schedule  M. — ColleoUona  made  by  hanks  for  account  of  depositors — Coutiuued. 


1891. 
Mar.  23 


Mar.  24 
Mar.  25 


Mar.  25 


Mar.  26 


It  ^-'f 


Mar.  28 

Mar.  30 

Apr.    1 
Apr.    3 


Apr.    4 


Apr.    6 
Apr.    8 


Apr.    9 


Apr.  10 

Apr.  11 
Apr.  16 

Apr.  21 
Apr.  23 


Apr.  23 
May     1 


v.  Portnondo 

Win.  Gall()WHy 

Wm.  (Jalloway 

H.W.  (iray 

Jno.  W.  B()aghton 

J.  F.  Portuoudo 

F.A.Davis 

S.  W.  Whitman 

S.W.Wliitman 

S.  W.  Wliitinau 

Waiiainakt'T  &  Hrown 

Mutual  Banking  Co , 

Louia  Dreke , 

F.A.  Davis , 

F.  A .  Davin , 

Central  Saving  F.  T.  &  S.  D.  Co  . 

Central  Savings  F.  T.  &.  S.  D.  Co . 

R.  M.  (Jreeu  Co 

R.  M.  (Jreen  Co 

Leon  Isaai;  Sc  Co , 

Leon  Isaac  Sc  Co 

Leon  Isaac  Sc  Co 

S.  F.  Wliitnian  &  Son 

S.  F.  Whitman 

S.F.  Whitman  &  Son 

S.  F.  W  hitman 

R.M.Green  &  Co 

Arthur  J.  Smith 

Mutual  Banking  Co 

R.  M.  (Jreene  &  Co 

R.M.  Greene  &,  Co 

Paine,  Diehl  &.  Co 

Paine.  Diehl  &.  Co 

Jno.  P.  DoluTty  &  Co 

J.  M(;Lau^iiIiri 

F.  A.  DaviH , :. 

H.W.Gray 

Roht.  W«MMl8 

R.  M.  Greene  (^o 

.J.  F.  Portuondo 

Roht.  Woo<l8 

Ivan  Fox  

Leon  Isaac  &.  Co 

Mutual  Hanking  Co 

Mutual  Banking  Co 

Roht.Wowls 

AV.  H.  Llewellvn 

R.  W.(ireene'&  Co 

R.  W.Greene  &  Co 

R.  W.  ( i  reene  Co 

Mutual  Hanking  Co 

Mutual  Hanking  Co 

Mutual  Hanking  Co 

S.F.  Whitman  &  Son 

Mutual  Hai 


Muherland,  Batavia 

Magee  &  Son,  Chicago 

Schrawz  Stove  Co.,  Chicago 

Heart  &■  Williams,  Chicago 

Frey,  Chicago 

Smith,  Chicago , 

Barker,  Chicago , , 

Reesier,  (>'h  icago *. , 

Roherts,  Chicago 

Wattfl  &  Co.,  Chicago 

Sawyer  &,  Co.,  Boston 

Conkling.  Camden , 

Simpson,  Hall  <fc  Co.,  Boston 

Hinckley,  lioston 

Daughters,  (.'iiicago 

Carroll 

Johnson,  Camden 

Schlater  &,  Int.,  Chicago 

Churchill  &,  Son,  Chicago 

Burke,  Chicago 

Hamilton  &  S<m,  Chicago 

Brown.  E.  Sc  H.,  Chicago 

English,  Chicago 

Roelling,  Chicago 

GramlKiis,  CIii<-ago 

R<»8Hnfield,  Chicago 

Starrett  &  (Jo.,  Chicago 

Fennington,  Media 

Morri.son,  Camden 

Impofe,  Balto 

Needham.  Chicago 

Reid  &  W..  Chicago 

Payne.  Richmoml 

Corn  Exc'li'g  Hank,  Cliicago 

Distillery  &.  C.  F.  Co.,  Chicago. . . . 

McKinney,  Chicago 

Wallace  &.  Int.,  CTiicago 

Distillery  &  C.  F.  Co.,  Chicago. . . . 

Murray  &,  Int.,  Chicago 

Adams 

Distillerv  &  C.F.Co 

Funk.  Coicago 

Spring,  Emen  &,  Co.,  Chicago 

Lear,  Chi<'ago 

Dane  &-  Co.,  Chicago 

Distillerv  &  C.  F.  Co.,  Chicago.... 

Sterart  &  H 

ThieUman  &  Ive,  Ballss 

Lowe  &  H..  Chicago 

Knight,  Chicago 

Justice  R.  &  Co 

Fisher,  Chicago 

Martindale,  Chicago 

Si)iekin  &  Co.,  Chicago , 


iking  Co i  Martindale,  Chicag 


V.  Portuoudo 

R.  W.  Greene  Co 

Jno.  W.  Broughton , 

H.  W.  ( »ray.  t  reas 

Mutual  Hanking  Co , 

J.  F.  Portutmdo 

McCormick  Harvesting  M.  Co 
McCormick  Harvesting  M.  Co 

Kyle,  Berry  Co.,  limit 

R.  W.  Greene  Co 

Mutual  Hanking  Co 

Jno.  Wanamaker 

Raine  Wagon  &.  Carriage  Co . . 

R.  M.  (yroene  Co 

Mutual  Banking  Co 

J.  F.  Portuoudo 

R.  M.  Greene  <fe  Co 

R.  M.  Greene 

R.  M.  Greene 

R.  M.  Greene  Co 

S.F.  Whitman 


lo. 


Potter,  Boston . 

Joel,  Chicago , 

Long.  Chicago 

Flyiin,  ('hi<-ago , 

Hunt,  Chicago 

Weber  Bro.,  Chicago 

Anustroug  <t  Int.,  Camden 

Robinson  &  Int.,  Camden  . . . . . 

Sire,  Camden 

Franklin  &.  Int.,  Camden 

Schafer  L.  &  Co.,  Chicago 

Hamilton,  Washington 

Prettyman,  Wilmington,  Del.. 

Weaver  &.  Int.,  Chicago 

Bill  Sc  Int.,  Washington 

Kennedy  &.  Son.  Washington.. 

Young  &  Int..  Hairisburg 

Utrecht,  Harrisbnrg 

Merle  &  Int.,  Harrisburg 

Kelly,  Washington 

Stuart,  Chicago 

Erringer,  Chicago 


$40.00 
118. IS 
16.70 
226.80 
350.  OU 
;{3.00 
2.00 
18.85 
16.30 
43.16 
2,  000.  00 
15(».00 
7.50 
17.  CO 
1.85 
n.46 
2L25 
10. 4(» 
14.85 
18.30 
6(».  70 
36.00 
129.  70 
5. 00 
31.95 
23.45 
20.75 
3-24. 72 
211.70 
5. 28 
10. 55 
.3.25 
12. 40 
70.00 
13.  20 
5.40 
274.15 
11.20 
23. 10 
66.00 
8.00. 
8.90 
59.80 
108.00 
235. 00 
ll.ijO 
8.00 
5.28 
10.55 
10.35 
52.  25 
424.  25 
106.70 
5.00 
93. 65 
29.60 
14.90 
27.85 
10.00 
141.19 
116.50 
46.40 
103.  22 
310.00 
10.  .55 
167.20 
30.92 
22.52 
16. 62 
20. 18 
60.00 
21.20  . 
25. 00 
10.55 
5.00 
31.86 
127.50 

9,568.40 


INVESTIGATION   OF   NATIONAL    BANKS. 
Schedule  N. — Credits  by  other  banks  for  account  bills  discounted. 


351 


Mar. 
Mar. 

Mar. 
Mar. 


20 
23 


26 
28 


Apr.    3 


Apr. 
Apr. 
Apr. 

Apr. 
Apr. 
Apr. 
Apr. 
Apr. 
Apr. 
May 
May 


6 

8 

11 

13 
16 
23 
27 
28 
29 
6 
9 


May    7 


S.  S.  Dager 

Kirk,  Johnson  &  Co 

J.  A.  Floreost  &.  Co 

Moskin  Sc-  Bros 

Kirk,  Johnson  &.  Co 

W.  R.  McClellan 

Kirk,  Johnson  &  Co 

F.  M.  Hulett 

S.C. Small  &Co 

T.Hud.sou 

Rogses,  Jones  &  Moore 

Woolman  Sc  Avis 

J.  A.  Floreost  &  Co 

Collins  &Bro8 

M.  Smith 

A.  W.  Turner 

M.  Tofts 

C.  S.  Simmons 

M.  Deuphye 

Hanolim,  B.  &  Co 

J.  A.  Wilson 

Allen,  Dumas  &  Thompson 

W.  J.  Thompson 

Allen,  Dumas  Sc  Thompson 

J,  Euierson 

Lee  W^olf&Bro 


due 

3,18 

due 

3,19 

due 

3.16 

due 

3,20 

due 

3,21 

due 

3,25 

due 

3,25 

due 

3,25 

due 

3,26 

due 

3, 23 

due 

3,29 

due 

4,    1 

due 

4,31 

due 

4,   4 

due 

4,   3 

due 

4,   4 

due 

4,   9 

due 

4,   9 

due 

4,21 

due 

4,2:$ 

due 

4,24 

due 

4,23 

due 

5,   5 

due 

5,   3 

due 

5,   7 

due 

4,30 

Camden 

Lancaster 

Chicago 

Batavia 

Lancaster 

Chase,  K.Y 

Lancaster 

Pottsville 

Boston 

Wilmington,  cash 

Chicago 

Camden. 

Chicago 

Chicago 

Wilmington 

Chicago 

Chicago 

Chicago 

Chicago 

Wilmington 

Chicago'. 

Camden 

Chicago .'. 

Wilmington 

Chicago 


Schedule  O. — Cash  collections  for  account  of  depositors. 


1891. 

Mar.  21 

F.  C 

F.  C 

D.C 

Mar.  24 

F.  C 

Mar.  25 

F.  C 

F.  C 

Mar.  26 

F.C 

F.  C 

F.C 

F.C 

Mar.  28 

F.C 

F.C 

Mar.  30 

F.C 

F.C 

Mar.  31 

D.C 

Apr.    3 

F.C 

Apr.    6 

F.C 

Apr.    8 

F.C 

F.C 

Apr.  11 

F.C 

F.C 

May    4 

F.C 

Robt.  Woods 

W.W.  Alcorn 1 

W.  E.  Hinch 

Robt.  Woods 

R.M. Greene  Sc  Co 

W.  M.  James 

S.F.  Whitman  &  Son 

F.  A.  Davis 

V.  Portuondo 

Jos.  H.  Coxe 

V.  Portnondo 

L.  Dreka 

J.  C.  Johnson 

Paine,  Deihl  &  Co 

Trans.  Collect  (W.  P.  Shaw) 

Jos.  H.  Coxe 

R.  W.  Greene  &  Co 

R.  W.Greene  &  Co 

Jno.  W.  Broughton 

McCormick  Harvesting  M.  Co. . . 
McCormick  Harvesting  M.  Co. . . 
Trans.  Collect  { W.  F.  Shaw) 


Walther 

Tarrytown 

C.  Bateson 

Mitchell 

Allen 

Siikley 

Eckert 

Merrill 

Keefe 

Fleming  &  H 

Leimgruber 

ScTanton,^'.,  &,  Co 

Hacnchen 

Kemp 

M.  D.  Goetting. . . . 

Weitel 

Gould 

Gregorv 

Sullivan 

Rothemal 

Smith 

Morgan 


$200.  00 
24:{.  00 
2i>.5.0C 
145.00 
255. 15 
.300.00 
255. 15 
25.40 
55.25 

'290.66 
125.00 
280.00 
120.00 
200.00 
280.  (W 
142.  .50 
290.00 
64.38 
290.00 
100.00 
280. 00 

1,06:{.37 

280. 00 

86.77 

300.00 


5, 925. 97 


$8.35 
1, 198.  50 

125.00 
18.85 
26.13 
23.75 

26L09 

.5.00 

17.60 

418. 78 
49.90 
U.34 
10.51 
28.00 

350. 00 
26.75 
24.85 
10.20 
36.15 
62.00 
46.66 
35.05 


2,794.46 


Schedule  P. 

OveiT>aid  by — 

Tradesman's  Nat.,  N.  Y $27,474.23 

Chase  Nat.,  N.  Y 2,609.58 

Boston  Nat.  Bk.  Commerce 1,471.97 

Chester,  Del.,  Co.  Nat 2.02 

31,557.80 


^•1 


352 


i 


I    I 


INVESTIGATION   OF   NATIONAL    BANKS. 
Schedule  Q.— Overdrafts  paid  since  3,  20,  91. 


3,21.  E.W.Lesley $21.77 

3.24.  W.B.Jones 28.70 

Tlieo.  Knauf  &  Co 39.32 

3.25.  A.L.  Huminel 4.90 

H.C.Ellis 5.70 

3.26.  R.H.  Dengler ^,  3.90 

L.T.Crawford 2.72 

A.  R.  Weiirick 5.29 

W.  Sargent,jr 56 

tred.  Geipel 31.13 

E.  S.  Haniiington 17. 35 

Hattie  L.  Lee I.OO 

W.  A.  Stockton i.  OO 

3, 30.  A.  M.  Longacker 4. 61 


3,28. 


3,30.  A.C.  McGowin .$4.00 

4,    2.  Mrs.  J.  W.  McBride 9. 07 

4,   3.  Nolan  «fc  Bro 19.80 

4,   4.  Geo.  Amberly 3. 98 

4,   8.  Samuel  Lucas .S6. 03 

4,  7.  Mary  McGlade 24. 90 

4, 18.  J.  Miller 70. 85 

4, 23.  A.  linger u[76 

4,27,  P.C.  Burke 79 

5,  2.  R.S.  Cullin....: "  [91 

5,   5.  J.  B.  Patterson 46.19 


Schedule  B.—Cash  collections  for  account  of  hills  discounted. 


1891. 
Mar.  21 


Mar.  23 
Mar.  24 
Mar.  28 
Mar.  20 


Apr.     1 


Apr.    3 
Apr.    4 

Apr.    7 


Apr.    8 

Apr.  9 
Apr.  10 
Apr.  13 

Apr.  14 


Offset. 


G.  B.  Aldrich,  due  3,  18 

Interest  to  J.  P.  Portuondo 

S>hraim  Young 
artin  Burke '..'.'...'. 

March,  Brownback  Stove  Co.,  dne  3.  22! 

W.W.Wallace ! 

T.  Hudson,  due  3,  23;  Co.  E-D.  3,  28 

J.  McCullough,  due  3,  26 

Mcllwain  &  Co,  due  3,  28 

J.  P.  Vanleer,  jr % 

Isaac  H.  Evans,  due  3,  30 '.'.'.... 

H.  G.  Irvine \\ 

Preston  Price,  part  payment .....'. 

Morris  Specknian 

C.  T.Davis 

Alpha  S.  De  Lissa 


F.  Strate  A  Son,  due  4,  6..., 

R.  S.Collum 

W.  S.  Emerson 


$169.  .'>0 
2, 830.  .W 


$1.89 
73.11 


Apr. 
Apr. 

16 
17 

Apr. 
Apr. 

18 
18 

Apr. 
Apr. 

21 

22 

Apr. 

23 

Apr. 
Apr. 

24 
27 

Apr. 

28 

A»r. 

30 

H.  Heilhoonner.  due  4, 

ThoH.  Little  &  Son 

Kirk.  Tohiit^tou  A-  Co., 

C.S.Saliu 

Thos.  Botts,  due  4,  11.. 
A.  Vanier,  due  4,  11  ... 

J«>8hua  Bartley    

Jno.  ().  KowniHu 

Ja».  Hart,  due  4,  12 

F.A.Davis 

E.  R.  Bryan,  due  4,  13  . 

Quinttui  Corwine 

Abr.  B.  Paul 

W.  H.  Jones,  due  4,  16. 
W.  W.  Ker,  due  4,  19  . . 
V.  Portuondo,  due  4,  10. 


6... 
due 


3,  31 


$1,418.03 
81.97 


May     2 

May    5 
May     6 


F.  Stroete  &  Son,  due  4,  21 

Geo  Myers,  Jr.,  due  4,  23 

C.  M.  &  R.  Thompkins,  due  4,  18. 

I  van  MuUer,  due  4,  21 

B.F.Hance 

C.  M.  &  R.  Thompkins,  dne  4,  21. 
H.  T.  Morrison  «fe  Co.,  duo  4,  17  .. 

Gus.  A.  Muller 

C.  W.  Gerkie,  due  4,  26 

F.Gallaghrr 

riios.  Leary 

H.  W.  Hahn.  due4,  30 

Jas.  L.  Brown,  due  5,  2 

H.  Heilhronuer,  due  4,  26 

W.  T.  Mersevau.  due  4,  29 

Jno.  J.  Cassidj',  due  5,  3 

F.  A.  Davis,  due  5,  2 

W.  B.  Hutchinson .'..' 

L. B. Mawson,  due  5,  4....i * 


399.13 


Cash. 


$36.  .30 

.28 

150.00 

282.00 

140.06 

50.16 

70.02 

85.00 

400.00 

160.00 

50.00 

100.00 

126.  07 

55.00 

50.00 


3,  000.  00 

46.44 

100.00 


75.00 
133.00 
400.00 
113.40 
50.00 
150.00 
208.25 
100.00 

1,:{00.00 
100.00 

2,  000.  00 
93.  31 
100.00 
101.07 
205.00 
100.00 


1,  500. 00 

46. 43 

200.00 

2.50.  00 

100.00 

1,645.10 
250.00 
500.00 
250.00 
145.00 
150.00 
181.68 
69.95 
250.00 
140.00 
200.00 
100.00 
300.00 
200.00 
90.00 


INVESTIGATION   OF    NATIONAL    BANKS. 
Schedule  R. — Cash  collections  for  avctmnt  of  hills  discounted — Continued. 


353 


May 


May 
May 


May 
May 


WUUs  G.  Hale. 

Fred.  W.  Nofer. 

J.  G.  Gosch  due  5,  9. 

Herder  Cutlery  Co.,  due  5,  21 $40.67 

184.  ;i3 


i 


11 
12 


May  13 


May 
May 
May 


13 
14 
16 


8  i  H.  V.  Cleaver,  due  5.  8 

9  I  J.  Rothchild,  due  5,  8 

I  Wm.  Thome 

Hugh  McNeile,  due  5,  10 

Thos.  P.  Toner,  due  5,  10 

H.  T.  Morrison  &  Co.,  due  5,  6  . . 

Hugh  McNeile 

Hugh  McNeile 

P.  B.  Horner 

F.  D.  B.  Rickards,  due  5,  14 

Chester  Co.  Guar.  T.  &  S.  D.  Co. 

S.  A.  Alexander 

Isaac  B.  Mauger,  due  5,  13 

Isaiah  Bender,  due  5,  17 

John  Donahue,  5,  17 : 


Cash. 


$200.  00 
•JQO.  (K) 
200.  00 


due  5,  29 


225. 00 

llO.tH) 

4,  000. 00 

.:  64.55 

.  I         100.  00 

200.00 

.  j     1,  500.  00 

.1  ,50.00 

i  50.00 

.|         100.00 

-i         200.00 

. i         100. 00 

.:  75.00 

57. 85 

61.20 

.i         167.91 

i  24, 360. 03 


Schedule  S — Received  from  hanks. 

Tradesmen's  Nat.  Bk.,  N.  Y $29,  231.  55 

Chase  Nat.  Bk.,  N.  Y 4  346.43 

Asheville,  N.  C,  Western  Carolina  Bk ^ '  103.  37 

Baltimore  Citizens'  Nat.  Bk 3  060!  57 

Batavia,  N.  Y.,  Bk.  of  Batavia 311^  yg 

Boston,  Mass.,  Bank  of  Conmierce 4  403. 16 

Camden,  N.  J.,  Nat.  State  Bk 2  336!  89 

Chester,  Pa.,  Del.  Co.  Nat.  Bk '  657*  79 

Chicago,  111.,  Fort  Dearborn  Nat.  Bk 7  718'  55 

Conshohocken,  Pa.,  First.  Nat.  Bk '   25. 38 

Frankford,  Phila.,  Second  Nat.  Bk 4  gog.  10 

Germantown,  Phil.,  Nat.  Bk.  of  Germantown 2  579. 13 

Harrisburg,  Pa.,  First  Nat.  Bk '  —  — 

Integrity  T.  Ins.  ife  T.  Co 

Jenkintown,  Pa.,  Jenkintown  Nat.  Bk 
Lancaster,  Pa.,  Reed,  McGran  &  Co. . . 

Manaynnk,  Phila.,  Manayunk  Bk 

Media  First  Nat.  Bk 

Northwestern  Nat.  Bk.  Phila 

Northern  Savings  Fund,  Phila 

Norristown  First  Nat.  Bk 

Pittsburg,  Pa.,  M.  &,  M.  Nat.  Bk 2  73o!  33 

Pottstown  Nat.  Iron  Bk '    -  -  * 

Pottsville  Safe  Deposit  Bk 

Reading,  Keystone  Nat.  Bk 

Richmond,  First  Nat.  Bk 

Scranton,  Pa.,  Third  Nat.  Bk 

Wheeling,  W.  Va.,  German  Nat.  Bk 

West  Phila,  Phila 

Westchester  Farmers'  Nat.  Bk 


182.  75 
242.90 

58.50 
395.  82 

96.25 

855. 18 

7.50 

542. 14 

243. 29 


103.00 
321.  74 
700.63 
326. 01 
433.58 
433. 80 
.594. 29 
514. 42 


Wilmington  Union  Nat.  Bk 9  494. 43 

Camden  S.  Dep.  Co "       -?       • 

N.  J.  Trust  &  S.  Dep.  Co 

Industrial  T.  Co 

Atlantic  City,  N.  J *..  ."/..'".IIIl." 

Tradesmen's  Trust  Co 

Doylestown, Pa., Doylestown  Nat.  Bk V.'.'.'.'." 


679.04 

205.  74 

66.00 

25  00 

443. 42 

3L03 


Amount  $25  from  Atlantic  City  is  already  accounted  for  in  the  over- 
drafts paid 


3792 23 


72, 112. 48 


25.00 


72,087.48 


n 


354 


II 


' 


INVESTIGATION   OF   NATIONAL    BANKS. 
Schedule  l—AmounlH  dm-  hf/  hanks. 


Baltimore Citizens'  Nat.  Bk 

Batavia,  N.Y Bank  ofBatavia 

Camden,  N.  J Nat.  8ta te  Bk 

Chicago,  HI Fort  Dearborn  Nat.  Bk 

Harrisburg,  Pa First  Nat.  Bk 

Lancaster,  Pa Kecd,  M('(irann  &  Co.. 

Media First  Nat .  Bk 

Pittsburg,  Pa Mer.  «S:  Mauf.  Nat.  Bk . . 

Richmond First  Nat.  Bk 

Washington,  D.  C Crane,  Parris  &  Co 

Westchester Fanners' Nat.  Bk 

Wihnington,  Del Union  Nat.  Bk 

Norristown Fiist  Nat.  Bk 


Schedule  U. — Returned  items  since  March  20,  1891. 


Chicago  money  order  Monroeville,  Ohio,  F.  A.  Davis 

Chicago  pro.  check.  Lord  &  Owen,  Chicago,  .J.  F.  Potuonda,  fee  2..58. 
Chicago  pro.  check,  Lord  &  Owen,  Chicago,  J.  F.  Portuonda,  fee  2..')8 
Chicago  pro.  check,  Lord  &  Owen,  Chicago,  J.  F.  Portuonda,  i'ev  2.58. 
Chicago  pro.  check,  Folson  &  Thayer,  Youngston,  Ohio,  J.  F.  I'oi 
fee  1.40 


rtuonda, 


Chicago  pro.  check,  G.  S.  Rethr,  agt.,  Columbus,  D.  M.  Osborno  &  Co.,  fee 

1.50 ;... 

Chicago  pro.  check,  A.  K.Ashworth,  Pomeroy,  Ohio,  D.  M.  Osborne  &  Co., 
fee,  1.50 ; 

Wilmington  pro.  check,  Ed.  Hart,  Middlet.,  Del.,  D.  M.  Osborne  &  Co.,  fee, 

2.08 ;.  .; 

Wilmington  pro.  check,  R.  J.  Ford,  Middlet.,  Del.,  D.  M.  Osborne  &  Co.,  fee, 
2.27 /._' 

Wilmington  pro.  check,  W.  A.  Scott,  Mid<llet.,  Del.,  D.  M.  6s])orne  &  Co  " 
fee,  2.08 [ 

Chicago  pro.  check,  G.  S.  Rittor,  agt.,  Columbus,  Ohio,  D.  M.  Osborne  &  Co.". 
f e  e ,  1 .  50 ; 

Chicago  pro.  clieck,  Fred.  Smith,  London ville,  Ohio,  D.  M.  Osborne  &  Co., 

fee,  1.65 l [ 

Camden  pro.  check,  Alf.  Drake,  liopewcll,  N.  J.,  D.  M.  Osborne  &  Co.,  fee, 

1..58 ,'._' 

Richmond,  Va.,  pro.  clieck,  K.  H.  Stratton,  GordonviBe,  Va.,  J.  M.  Waisli  & 

Co.,  fee,  2.30 .__ 

Richmond,  Va.,  pro.  check,  J.  M.  Johnson,  Black  St.,  Va.,  J.  M.  Walsh  &  Co., 

fee,  1 .32 [ 

Richmond,  Va.,  pro  check,  J.  M.  Johnson,  Black  St.,  Va.,  J.  M.  Walsh  &  Co.. 

fee,  1.32 [ 

Chicago  pro.  check,  O.  J.  Craig,  St.  Paul,  Minn.,  J.  M.  Walsh  &  Co.,  feej  2.56! 
Chicago  pro.  check,  E.  J.  Cleveland  &  Co.,  Chicago,  J.  M.  Walsh  &  Co.,  fee. 

2.58 .'.../ 

Camden  pro.  check,  E.  R.  Pierce,  P.  Amboy,  N.  J.,  f.  H.  L.  McMenomy,  fee, 

1.62 

Pittsburg  pro.  check,  P.  W.  Houck,  Greensbnrg,  Pa'  F.  Whitman  &  Co.,  fee, 

2.38 

Pittsburg  pro.  check,  P.  W.  Houck,  Greensbnrg,  Pa.,  F.  Whitman  &  Co.,  fee, 

2.25 

Media  pro.  check,  Amos  F.  Bill,  W.  Grove,  Pa.,  J.  C.  Lupper,  fee,  1.70  ...... 

W.  Chester  pro  check,  Kent  J.  &  Hdw.  Co.,  Oxford,  McLear  &  KendaU.  fee. 

1.90 '      ' 

Camden  pro.  check,  S.  H.  Kelly,  Atlantic  City,  W.  Biddie,  fee  1.36!  ] !!!!!!!! 
Camden  pro.  check,  Fillon  Bros.,  Atlantic  City,  Nace  &,  Swateley,  fee.  1.36 

Boston  draft,  W.  W.  Alcorn  &  Co.,  John  J.  Pyle,  fee,  3.16 

N.  Y.  draft.  Keystone  Bank,  Boston,  fee,  2.02 

N.  Y.  draft,  Cram.  P.  &  Co.,  Wash.,  Wash.,  fee,  1.29 

N.  Y.  draft,  W.  &  B.,  pt.  paid,  6001.31-1041.67-Bal 

Payment  stopped,  ck.  F.  K.  Hippie,  R.  E.  Trist,  J.  Campbell 

Refused,  ck.  W.  H.  Parris,  Central  Trust,  H.  Hildebrand 

Refused,  ck.  McFadden  &  Co.,  Central  Trust,  Keystone  Bank 


$150.  00 

1.25 

1, 557.  70 

3, 080. 62 

56.  75 

421.81 

.27 

.40 

.12 

116.  10 

.35 

237-15 

125.00 

5,  747. 52 


$10.00 
600. 88 
886.  28 
518.58 

163.10 

11.50 

28. 50 

43.58 

62.27 

66.29 

15.90 

57.65 

19.58 

25. 40 

18. 32 

7.80 
34.44 

27.58 

201. 12 

47.35 

52. 25 
50L70 

401. 90 

5L36 

.55.  47 

403. 16 

2, 002.  02 
.501.29 

4,  959. 64 
500.00 
240.00 
221. 40 


INVESTIGATION   OF    NATIONAL    BANKS.  355 

Refused,  ck  McAgnew  Drexel,  R.  Steele $11. 35 

Payment  stopped,  ck.  S.  J.  Shanbacker,  De  Ha  ven,  &  T.  J.  R.  Clausen,  sec'y .  10.  45 

Payment  stopped,  ck.  J.  Killian  Guarantee  Co.,  R.  Young 240. 00 

Money  order,  Wythwill,  Va.,  F.  A.  Davis 15.00 

Money  order,  Decatur,  111.,  F.  A.  Davis 15. 00 

Due  mems.,  Jno.  Hayes 50.00 

Check,  Frankford,  city  treas -. 4,000.00 

17, 078. 11 
Schedule  V  — Collection — Amounts  returned  to  owners. 

Paine  Deihl  &  Co $2^^.00 

Arthur  .L  Smith 324.72 

W.  E.Hinch 12.5.00 

H.  W.Gray 637.10 

1, 114. 82 
Schedule  W. — Offsets  allowed  on  hills  disconnted  5,  IS,  91, 

5,  2.  F.A.Davi8 $300.00 

5,    6.  FredW.Nofer 200.00 

5,  7.  Jas.  J.  McGin,  agt 200.00 

5,   7.  W.  S.  Emerson,  treas 40. 67 

4,14.  F.  A.  Davis 2,000.00 

V.  Portuondo  $19  bal.  due  on  note 1,  4 18. 03 

4,13.  Jno.  O.  Bowman 1,300.00 

4,   8.  W.  S.  Camerson 1.89 

4,   6.  Alpha  De  Lissa 169. 50 

4, 28.  Richard  D.  Miller,  taken  in  payment  of  note  held  by  C.  H.  and  pro- 
tested. Amt.  $1,000  was  taken  from  cash  and  note  j)aid  and  re- 
turned to  Mr.  Miller 1,000.00 

6, 630. 09 

Schedule  X. — Expenditures. 

Salaries,  March 1,460.33 

Salaries,  April 609. 

AC.  Salaries,  May 12. 

Rent,  March 2,000.00 

Rent,  April 2,000.00 

Electric  lighting,  March 23.91 

Services  agt.  from  Washington 114. 

Expenses  &  etc.,  for  judgment  C.R.  Col  well .5.5.00 

Expenses  &.  etc.,  for  judgment  C.  R.  Col  well 254. 40 

309.40 

6, 518,  64 
See  also  bond  &,  warrant,  C.  R.  Colwell,  $6,500. 

Schedule  Y. — New  York  drafts  outstanding  March  20,  1891. 


On  Chase  National  Bank : 

No.  12029 $25. 

12118 5.75 

12424....-..^ 1,962.92 

12425 231.52 

12449 370.       i 

12499 13.89  ! 


i  On  Tradesmen's  National  Bank : 

No.  2198 $160. 

5048 199.50 

5061 2,500. 

5081 7.5. 

5086 25,000. 

5087 150. 


2, 609. 09  I 


30, 633. 58 


The  New  York  banks  having  remitted  the  amounts  due  this  bank  on  March  20  the 
payment  of  the  above  drafts  is  not  now  provided  for  in  N,  Y. 


Klilli 


356 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OP    NATIONAL    BANKS. 


357 


t 


■m 


s 


V     'I 

I'     • 'f 


Hi 


Sundry  coUateraU.  ^ 

Gideon  N.  Greer,  policy  127413,  Mutual  Life  Ins.  Co.,  N.  Y.    Collateral  for 
overdraft $2, 000 

J.  Henery  Gercke,  policy  181243,  Connecticut  Mutual  Life  Ins.  Co.  (sup- 
posed to  be  general  collateral),  paid-up  pol 809 

Franklin  N.  Close,  Phila.  Driving  Park  Asso.     Bonds  trausfered  to  the  Key- 
stone Nat.  Rank 500 

Peter  Herdic,  750  shares  of  Herdic  Personal  Transportation  Co 

E<lward  W.  Patton,  300  »han*s  of  Powelton  Electric  Co.     Collateral  for  over- 
draft  

Chas.  E.  Blumner,  certificate  of  membership  U.  B.  Mutual  Aid  Society  of 

Penns.,  No.  74 3,000 

Also  the  following  notes: 

Note  of  N.  Chipman,    due  Mar.  15,  ^81.     Endorsed,  Chas.  E.  Blumner  4fc  Co. . .      $300 

u     u            It                  u         u      22, '81.               "               a         u          a                      ...  200 

"    "          "               "    May  10,^81.            "            u        u        n  75^ 

u  it  tt  tt  22  '81.  **  **  ^'  "  300 
"  John  T.Elliott,  "  June    4,' '81.'            "         N.  Chipman  &    Chas.  E. 

Blumner  &  Co 1, 180 

Wm.  A.  Binder,  Policy  Ins.  Co.  North  America,  expired  Dec.  30,  '87 2, 500 

Rec'd  items  above. 

Robert  M.  Yardley, 

Beceiver. 
May  28,  ^91. 


List  of  notes  on  hand  as  discount  offerings,  not  returned  to  owners. 


$25.70 

50.00 

50.00 

90.58 

174.00 

174.00 

174.00 

80.00 

80.00 

80.00 

41.50 


List  of  notes  deposited  hy  W.  F.  Shaw  for  collection,  due  and  unpaid. 

R.  W.  Van  Dewater due  Jan.  18,  '91 

Wm.F.  Hagen due  Jan.  30, '91 

Wm.F.Hagen due  Feb.  24, '91 

Roger  W.  Roberts due  Jan.  17, '91 

Wm.H.Egee due  Oct.  27, '90 

Wm.H.Kgee due  Oct.  27, '90 

Wm.H.Egee due  Nov. 26, '90 : 

Wm.H.Egee due  Dec. 2.5, ^90 

Wm.H.Egee due  Jan.  28, '91 

Wm.H.Egee due  Feb.  2.5, '91 

R.  F.Lehman due  Nov.  27, '90 

R.F.Lehman due  Nov. 30, '90 112.10 

R.F.Lehman due  Dec.29,'90 49.73 

R.F.Lehman due  Dec.30,  '90 111.19 

R.F.Lehman due  Jan.  :^), '91 62. 16 

R.F.  Lehman thw  Jan.  :^), '91 164.00 

R.  F.Lehman due  Feb. 2.5, '91 53.32 

Geo.W.Hively dne  Dec.   2. '90 17.66 

James  Perry due  Oct.    7, '90 25.40 

Also  the  following  notes  left  for  discount,  not  endorsed  and  not  discounted : 

W.  F.  Shaw,  note  due  .Jan.  2, '91 $290.92 

W.  F.  Shaw,  note  du«'  Feb.  2. '91 1,209.83 

W.  F.  Shaw,  check  to  pay  note  of  $2,000  due  4, 28,  '90,  dated  Nov.  17,  '90  ....  2, 063. 00 

W.  F.  Shaw,  not«  due  Feb.  2, '91 1,099  25 

W.  F.  Shaw,  note  due  Dec.  .3, '90 362.30 

W.  F.  Shaw,  note  Jan.  3, '91 240.92 


Rec'd  above  items. 


May  28,  '91. 


BOBEBT  M.  YaKDLEY, 

Receiver. 


Date. 

Owner. 

Maker. 

Time. 

Amoant. 

Mar.  14, 1891 

David  Greer 

Josenh  Greer    ....... 

3  mos... 
3  mos... 

3  mos . . . 
2  mos... 
60  clays  . 
2  mos... 

4  mos  .. 

$3,000 
1  500 

Mar.  17, 1891 

Wiu.  J.  Jackson 

S.M.  Huck 

Nov.17,1890 

Horatio  G.  Ker« 

L.  Me  M  icliael 

J.R.  Marsh 

Chas.  S.  Saliu 

Geo.  Veah.ir 

L.McMirhael 

John  M.  Kuipe 

(Jhas.  S.  Saliu           

"IIM 

Mar.5,1891 

Mar.  18, 1891 

Mar.17,1891 

75 
200 
125 

Mar.  14, 1891 

J.A.Wilson 

Constantine  Carpenter 

1,200 

t'\ 


Rec'd  above  item. 


May  28,  '91. 


Robert  M.  Yardley, 

Meceiver, 


List  of  papers  found  in  the  president's  hox  in  vault,  * 

Frank  J.  Primrose,  sundry  overdue  and  protested  notes. 

W.  G.  Woodward,  policy  Girard  Insurance  Co.,  $1,500. 

Presbyterian  Annuity  Life  Insurance  Co.,  $4,000,  and  sundry  letters. 

J.  Bardsley,  receipt  Manhattan  Life  Insurance  Co.,  New  York,  for ^95.35, 

Safe  Memo.  Consolidated  Time  Lock  Company  guarantee. 

Central  Saving  Fund  and  Trust  Company,  sundry  memorandums. 

Statement  of  settlement,  Kelly  to  Sloan. 

W.  McCarter,  painting  bill,  J.  C.  Lucas. 

Bectel  M.  Custer  est.,  papers  belonging  to  estate. 

Geo.  E.  Dearborn,  sealed  envelope. 

H.  Pew,  sealed  envelope. 

Certificate  of  boiler  inspection. 

M.  R.  Wood,  sealed  envelope. 

Bradstreet  &  Co.,  agreement  July  5th,  1889. 

The  Hollar  Lock  Inspection  &  Guaranty  Co.  contract  with  Keystone  National  Bank. 

Jno.  Wanamaker,  guarantee  of  Wanamaker  &  Brown. 

State  of  Pennsylvania,  Texas. 

Jacob  Miller,  sealed  envelope  for  safe  keeping. 

Lease  of  the  Keystone  National  Bank  to  Central  Trust  and  Safe  Deposit  Company 
(unsigned). 

.Jno.  W.  Boughton,  mortgage  and  insurance  policies. 

George  W.  Wright,  20,000  shares  International  Etchers  Co.  (certificate  in  name  of 
Keystone  National  Bank). 

Jno.  B.  McAfee,  policy  Equitable  Life  Assurance  Societv,  $5,000. 

A.  Wilkins,  The  Charleston  &  Sullivaus  (iland  Kailroad'bond,  No.8,  $1,000. 

Deed,  Sarah  Ann  to  John  Connelly,  lot  2813,  section  81,  Clear  View. 

L.  S.  Cann,  lot  of  protested  and  overdue  notes. 

Wm.  J.  Simmons,  Union  Mutual  Life  Insurance  Co.  certificate  25417  for  2,000. 

T.  N.  Davis,  empty  envelope. 

Chas.  Williams,  Williams  Marble  &  Slate  Co.,  certificate  100,  for  100  shares. 

Geo.  W.  Mears,  pres.  Baxter  Overland  Tele])ln)ne  C«).,  200  shares. 

W.  W.  Keys,  95  shares  Philadelphia  Seueeting  Co. 

M.  Landauer,  1,500  shares  American  Braided  \\'ire  Co. 

A.  Wilkins,  Charleston  Water  Works  Co. 

Merrick  Price  Co.,  papers. 

Adam  Smyth,  Manhattan  Life  Insurance  Co., David  C.  Spooner,  $2,000. 

A.  B.  Weuieck,  100  shares  of  the  National  Surgical  Institute. 

Capt.  R.  S.  CuUiuu,  benefit  certificate  Royal  Arcanuca. 

Jno.  S.  McKinley,  one  envelope  marked  McGlade  et  ah,  lease  and  deeds. 

Do.   Chas.  McGlade. 

Do.  Mary  I.  McGlade. 

Title  papers,  Mary  H.  McGlade  Parker  Tract. 

Do.  Mary  H.  McGlade  Cotlin  Tract. 

Packages  of  miscellaneous  papers. 

Received  May  26, 1891,  items  above  described. 

Robert  M.  Yardley, 

Receiver. 


mk 


'71 

I 


358 


INVESTIGATION   OF   NATIONAL   BANKS. 


Items  found  among  checks  of  cily  treas.   in  ponch  o,  2i2,  91, 


1, 15, 91. 
1, 10, 91. 
1,24,91. 
11,  21, 88. 
1, 15,  91. 
2,11,91. 
2,11,91. 
2,   4,91. 

2, 13, 91. 
2,18,91. 
2, 18, 91. 
2, 19, 91. 
2,21,91. 

2,  21, 91. 
2,21,91. 
2,24,91. 
2,24,91. 
2,20,91. 

9. 27. 90. 

2. 25. 91. 

3,  3,91. 
3,  5,91. 
3,  4,91. 
3,   6,91. 

3,  7,91. 
3,  9,91. 
3,  9,91. 
3, 11, 91. 


..G.W.M 

..G.W.Marsh 

..G.W.Marsh 

-.G.W.Maish 

..Saiii'l  F.  Strin«jffWlow,  i\^i  ... 
Clius.  Lawn'iici' 


Mem.  J.  W , 

Ck.  M.  F.  La  Roche 

Ck 

Ck.  J.  Henoi'v  Hayes,  Tr. 

Ck.  G.W.Marsh 

Mem.  G.  W.  Marsh 

Ck.Cash G.W.Marsh 

Ck.  Frank  Farrell G.  W  .  Marsh  . . 

Ck.  lleiicry  A.  Fry,  cl'm G.  VV.  Marsh  . . 

Mem Mr.  Marsh 

Ck.  W.L.Buck G.  W.Marsh  .. 

Ck.Cash G.W.Marsh.. 

Ck.Cash G.W.Marsh  .. 

Ck. A. G.Elliot  &,  Co G.W.Marsh  .. 

Ck.Cash G.W.Marsh  .. 

Ck.Cash 

Ck.Cash ;;; 

Ck.  Mrs.  L.  A.  Marsh G.  W.  Ma rsii  . ' 

J)raft  Estes  «fe  Lanriat G.  W.  Ma  i  sli  . . 

Ck.  W.  W.  Chew G.  W.  Marsli  . . 

Note  G.  W.  Marsh G.  W.  Marsh  . . 

Mem (\.\\.  Marsh  . . 

Mem.  G.  W.  Marsh A.  C.  Thomas  . 

Ck.  F.  C.  Stilhvell G.  W.  Marsli  . . 

Ck.  S.B.Hney G.W.Marsh  .. 

Ck.  W.  M.  Hensell G.  VV.  Marsh  . . 

Ck.  Jos.  Clare H.  Ask iu 

Ck G.W.M 

Ck.  Leoper  &  Dou^^litcn G.  W.  Marsh  . . , 

Ck.  Harry  Coward G.  W.  Marsh  . . 

Ck.Cash G.W.Marsh.., 

Ck.  Henery  Van  Beil G.  W.  Marsh  . . . 


$10,  000.  00 
100.00 
89.  95 
7(>.  67 
7.10 
20.00 
600.00 
80. 50 
25.00 
12.00 
200.00 
5(X).00 
350.07 
261.30 
100.00 
5.00 
600.00 
500.00 
75. 00 
25. 00 
435.00 
5.00 
3.30 
500.00 
500. 00 
62.40 
7.50. 00 
200.  00 
135.00  ' 
115. 26 
62.00 
225.  75 


T^  1  ....  16,62L30 

Items  ahove  descrihcd  were  received  hy  me  on  this  date. 

Robert  M.  Yardley, 

Receiver. 
Per  Ryan. 
May  26, 1891. 


^1r 


Amounts  turned  over  to  R.  M.  Yardley,  receiver. 

Cash ^2]g 

Items,  Schedule  D ."'.'.'.'.'.'.'.'.'.''  ll' 

I  terns.  Schedule  G 1  !.!!*!!.!!!..]!..!!  1  * !  1  ]  is' 

Returned  items,  Schedule  U .....!............''..'  17' 

Collections  paid.  Schedule  V 1' 

Offsets  on  hills  discounted,  Schedule  W  ..". ......[[].[]["  .[[[[].[]".[[[  q 

Expenditures,  Schedule  X ]..'....!..!..". G 

Amount  due  hy  hanks.  Schedule  T i'. ill.!. .!!!!!!!]!!!!! !!!!  5' 

Exchange  on  remittance  by  hanks W.[] ....[  V. ' 

Item,  J.  Miller i!"!!]!!!*..!!!!!!!!!]] ' 

Overdrafts, less  amt.paid !!."!.*!!..*'!!!!!!!!  130 

ij.  s.  bonds ]!!!!!!!!!!!.!!].']!!*  ho 

Bills  discounted,  less  amt.  i)aid '.'.'.'.'...'.'.'.'.'.'.'.'"  787* 

Redemption  fund !"'"!]!!!]!!*!!]1!!  2 

Furniture  and  fixtures .'...'..'.'. 10' 

Exchanges  held  by  C.  H .-.-........]... 70' 

Stocks  and  bonds,  lYac tion  bonds  held  at  C.  H. : ' 

2, 209  shares  Sea  Girt  land $100  000 

1,055  shares  Spring  Lake [    500'000 


166.52 
033.63 
096. 57 
078. 11 
114. 82 
630.09 
518. 64 
747.52 
4.73 
475. 75 
603. 01 
000.  (X» 
067.17 
250. 00 
(KX).  00 
005.46 


Received  the  above. 


600,000.00 

1, 827, 792. 02 

Robert  M.  Yardley, 

Receiver, 


INVESTIGATION   OF   NATIONAL   BANKS. 


359 


Upon  taking  charge  of  the  bank  iu  a.  m.  March  £0th  it  was  impossible  to  get  a 
correct  account  of  items  of  different  kinds,  some  of  which  were  in  process  of  collec- 
tion. The  amount  as  shown  in  report  of  ioudition  is  as  near  as  we  could  get  it; 
which  will  account  for  the  excess  of  $6,669,67  in  amount  turned  over  to  the  re- 
ceiver and  the  total  to  be  accounted  for.  These  matters  were  explained  to  Mr.  C.  J. 
Stoddard,  of  the  Comptroller  Office,  who  was  present. 


Assets  to  he  accounted  for. 

Overdrafts,  Schedule  A $131,(X)2. 14 

U.  S.  bonds  to  secure  circulation 50, 000. 00 

Bills  discounted,  Schedule  B 811,427.20 

Redemption  fund 2,  250. 00 

Furniture  and  fixtures 10,  000. 00 

Due  l)y  banks,  including  reserve  agents.  Schedule  C ' 35, 946. 34 

Cash  items  in  Dep.  3, 20,  Schedule  I). . .  1 11, 033. 63 

Country  checks,  Dep.  3, 20,  Schedule  E 2, 855. 93 

Country  checks  on  hand  3, 20,  Schedule  G 1,  072. 01 

3  927. 94 

Cash,  Schedule  F 42,' 009.' 36 

Cash  items.  Schedule  G 13, 096. 57 

Memo.,  advances  to  clerks'  ac,  salaries 577. 46 

Exchanges  held  by  C.  H 70, 005. 46 

Fraction  bond  and  Sea  Girt  and  Spring  Lake  stock 600,  000. 00 

1,  771,  276. 10 

Amount  due  by  banks,  collection  account,  Seheduh'  M 9,  568.  40 

Amount  due  by  banks,  bills  disc(mnted,  account  Schedule  N 5,  925.  59 

Amount  collections  paid.  Schedule  O 2,  794. 46 

Overpaid  by  New  York,  Schedule  F 30, 083. 81 

Overpaid  by  Boston,  Schedule  P 1,471.97 

Overpaid  by  Chester,  Schedule  P 2. 02 


m 


1, 821, 122. 35 


Condition  of  ths  Keystone  National  Bavl  when  ialen  charrfc  of  by  W.  P.  Drew,  Xational 

Rank  Examiner,  10  a.  m.,  March  ^Oth,  1S91. 

Overdrafts  (schedule) $131, 002. 14 

U.  S.  bonds 50,  000. 00 

Bills  discounted  (Schedule  B) 811, 427. 20 

Redemption  fund 2, 250. 00 

Furniture  and  fixtures 10,  000,  00 

Due  by  banks  (Sdiedule  C) 23, 424. 00 

Due  by  Tradesman's  Na.ticnial  Bank,  N.  Y , 1,  757. 32 

Duo  b v  Chase  National  Bank,  N,  ^' 765. 02 

Cash  items  ac.  Dep.  3,  20  (Schedule  D) $11, 083. 63 

Countrv  checks,  ac.  Dep.  3,  20  (Schedule  E) 2, 855;  93 

13, 889. 56 

Cash,  Schedule  F 42,009.36 

Cash  items  (Schedule  G) $13,096.57 

Countrv  checks  (Schedule  G) 1,  072. 01 

14,168.58 

Memo.,  advances  to  clerks,  ac.  of  salaries 577. 46 

Exchanges  for  C.  H.  3,  20,  held  bv  them 70, 005. 46 

Traction  bonds  held  by  C.  H . . . . '. 100, 000. 00 

Sea  Girt  and. Spring  Lake  stock 500, 000, 00 

1,771,276,10 

Liabilities  March  2©,  1891:  = 

Due  bills  (Schedule  H) 43,70L51 

Circulation 45. 000. 00 

Deposits  in  a.  m.,  3,  20  (Schedule  I) 29, 240. 67 

Dividends  unpaid 6. 120. 00 

Individual  deposits  (Schedule  J) 1,  300,  513. 07 

Due  to  banks  (Schedule  K) 13,  743. 49 

Certificates  of  deposits  (Schedule  L) 7,  971. 91 

Clearing-house  loan 334,286.60 

1,780,577.25 


^V: 


360 


INVESTIGATION   OF   NATIONAL    BANKS. 


Received  the  followinjr  from  W.  P.  Drew,  national  bank  examiner: 
Certificate  of  stock  of  Sea  Girt  Land  Imp.  Co. — 


No.  251.. 
242.. 
241.. 
240.. 
237.. 
232.. 
220.. 
219... 
216... 
125... 
124... 


Shares. 

27 
170 
435 
100 
273 

20 
100 
100 
600 

50 

50 


No. 


123. 
121. 
122. 
118. 
119. 
120. 
191. 
195. 
194. 


Certificate  of  stock  of  Spring  Lake  Beach  Imp.  Co. — 


Shares. 

No.  89 200 

90 200 

91 200 

92 200 


No.  123. 
72. 


Shares. 
50 
50 
50 
25 
25 
50 
14 
10 
10 

2,209 


Shares. 

5 

250 

1,055 


Bradford  Mills  Co.  certificate.     No.  13, 100  shares. 

Note  of  M.  Elizabeth  Lucas,  estate  of  J.  C.  Lucas,  Jan.  12, 1891.    One  year,  $9,100. 

Due  bills  and  checks  as  follows  received  from  John  Bardslev  May  18t'h,  1891,  to  be 
charged  against  the  city  treasurer  account  and  credit  to  the  account  of  John  Bards- 
ley  in  individual  ledgers : 


Due  bill  No.  14,477;  3, 19,  91 
Due  bill  No.  14,487;  3,  20,  91 
Keystone  check — 

No.  152 


167. 
169. 
170. 
171. 
172, 
173. 
174. 
176. 


$766. 22 
706. 88 

25,000 

125, 000 

949. 76 

903.28 

714. 81 

833.34 

3, 270. 94 

3, 612.  .34 

1,866.72 


No.  177 $1,761.09 

178 4,534.34 

179 1,645.27 

180 1,464.10 

181 56<).52 

182 2,790.03 

184 663.46 

185 10,000.00 

186 9.000.00 


196, 043. 10 


Certificates  of  stock  of  the  Keystone  National  Bank,  received  by  W.  P.  Drew 
national  bank  examiner,  from  Samuel  B.  Hney,  attorney  for  estate  of  J.  C.  Lucas  on 
March  28th,  1891  for  the  purpose  of  cancellation. 


ShareH. 
No.  340 200 


617. 
618. 
628. 
629. 
847. 
851. 
876. 
879. 
899. 


^,        ^  Shares. 

No.  900 100 

100 

100 

50 

100 

100 

100 


200 

901 

225 

902 

241 

923 

200 

924 

100 

925 

200 

928 

100 

200 

200 

Total 2,.516 


Letter  from  Samuel  B.  Huey,  attorney  for  J.  C.  Lucas  to  G.  B.  Haines,  president 
dated  10,  4,  '88,  with  reference  to  lithographic  establishment  number  31  and  35  N. 
Tenth  st. 

Receipts  from  Read  &  Petit  dated  5,  23,  '91,  for  deed  Mrs.  Lucas  to  Keystone  Bank 
for  Sea  Girt  interest,  and  copy  of  receipt  given  to  Mrs.  Lucas. 

Bank  books  J.  C.  Lucas,  number  2,  Jno.  C.  Lucas  and  check  register  J.  C.  L.,  also 
check  12,  27,  1882.  J.  C.  Lucas  on  Manufacturers'  National  Bank  in  favor  of  G  W. 
Marsh,  cashier,  for  $30,000.  *      *' 

Check  9,  10,  '83,  J.  C.  Lucas  on  Keystone  National  Bank,  favor  of  Keystone  Nat. 
Bank  for  $60,000  and  check  1,  15,  '85,  J.  C.  Luca«  on  Manufacturers  Nat.  Bank  favor 
G.  W.  Marsh,  casliier,  for  $38,000,  also  lot  of  canceled  checks  amounting  to  $98,447  18 
signed  Jacob  Myers. 


INVESTIGATION   OF    NATIONAL    BANKS. 


3G1 


*l 


Seven  packages  bonds,  mortgages,  deeds,  and  etc.,  with  reference  to  Fremont 
House  and  Sea  Girt  properties,  found  drawer  of  cashier's  desk  May  27, 1891 — 4  stock 
certificate  books ;  1  stock  ledger ;  1  dividend  book ;  1  minute  book. 

Individual  ledgers,  general  ledgers,  discount  records,  cash  books,  and  other  mis- 
cellaneous books,  etc. 

One  bag  mixed  coin  amounting  to  $72.87  and  (me  bag  mutilated  coin,  $4.04,  found  in 
vault  and  said  to  belong  to  Jno.  Hayes,  cashier. 

Due  bill  No.  14,480,  amount  $1,037.05,  was  given  to  Wanamaker  &  Brown  on  March 
19,  for  which  they  gave  their  checks  for  $1 .0(X).50  and  $36.55.  The  checks  were  charg<'d 
to  their  account,  but  afterwards  the  due  bill  was  returned  in  exchange  for  the  checks, 
leaving  account  of  W.  &  B.,  as  before  the  entry. 

Four  accounts  current  with  Tradesmen's  and  Chase  National  Bank  New  York,  dated 
Jan.  and  March,  1891. 

Package  papers  with  reference  to  deposit  of  city  treasurer  March  20, 1891. 

May  28,  1891,  received  pkgs.  etc.,  above  described. 

Robert  M.  Yardley, 

Beceiver. 

Q.  Is  that  a  copy  of  the  formal  iDstructions  given  to  the  receiver,  Mr 
Yardley,  from  your  ofl&ce? — A.  This  is  the  regular  form  of  instructions 
delivered  to  receivers,  and  I  am  informed  by  Mr.  Stoddard  that  this 
copy  is  the  one  handed  to  Mr.  Yardley  when  he  received  his  commis- 
sion. 


Exhibit  16. 

Duties  of  receivers  of  national  hanks. 

Treasury  Department, 
Office  of  Compiroller  of  the  Currency, 

Washington,  D.  C, 


Sir:  Having  qualified  as  receiver  of  the 
receipt  of  your  coniuiission  from  Mr. 


National  Bank  of 


,  and  ujion 

-,  national  bank  examiner,  in  charge 
of  the  bank,  and  this  letter,  you  will  immediately  remit  the  cash  on  hand  to  the 
Treasurer  of  the  United  States  by  exchange  on  New  York,  for  the  credit  of  the  Comp- 
troller of  the  Currency,  for  account  of  the  creditors  of  the National  Bank  of 


-,  and  all  moneys  hereafter  collected  must  be  forwarded  to  the  Treasurer  as  fast 
as  $1,000  shall  be  accumulated. 

You  will  also  without  delay  prepare  and  forward  to  this  office  an  inventory  of  all 
the  assets  of  the  bank  as  they  existed  at  date  of  suspension,  the  good,  doubtful,  and 
worthless  assets  to  be  scheduled  separately  at  their  nominal  value,  and  an  estimate 
to  be  made  of  the  actual  value  of  the  doubtful  and  worthless. 

The  following  process  should  be  observed : 

All  the  bills  receivable  are  to  be  scheduled  by  themselves,  and  the  several  columns 
should  show  ''number,"  "maker,"  "endorser,"  "rate  of  interest,"  "date,"  "ma- 
turity," "  good,"  "  doubtful,"  "  worthless."  Any  bills  which  you  think  are  not  good 
for  full  value  should  be  placed  in  the  doubtful  column.  The  same  process  should  be 
observed  with  respect  to  "other  assets, "  and  such  items  in  either  schedule  as  need 
further  explanation  should  be  accompanied  Avith  remarks  for  the  information  of  this 
office. 

Schedules  of  the  liabilities  of  the  bank  include  an  alphabetical  list  of  the  depos- 
itors and  those  holding  certificates  of  deposit,  creditor  banks  and  amounts  due  to 
each,  and  contingent  liabilities,  such  as  rediscounted  paper.  A  list  of  the  stock- 
holders of  the  bank  as  ap})eared  on  the  books  at  date  of  failure,  is  also  required. 

Blank  forms  for  quarterly  reports  will  not  l»e  needed  by  you  before  the  end  of  the 
next  quarter,  when  the  various  assets  now  scheduled  will  appear  under  appropriate 
heads. 

The  total  assets  at  date  of  suspension  will  never  change,  but  as  the  assets  are  col- 
lected the  amounts  will  disappear  from  items  21.  22,  and  23,  and  appear  in  items  10 
to  19. 

I  inclose  herewith  a  printed  form  of  blank  proof  of  claim,  and  also  a  blank  certifi- 
cate to  be  issued  to  the  creditors  who  have  proved  their  claims.  You  can  order  a 
sufficient  number  to  be  printed  for  use  hereafter.  The  proper  course  in  proving 
claims  is  for  each  depositor  to  present  his  claim,  supported  by  an  affidavit,  and 
the  production  of  the  pass-book,  whereupon  it  is  compared  with  the  books  of  the 
bank,  and  if  it  agrees  therewith  and  you  are  satisfied  that  the  books  are  correct, 
the  certificate  may  issue;  but,  otherwise,  you  should  require  evidence  of  a  proper 
character  sufficient  to  establish  the  validity  of  the  claim. 


Ill       ' 


:J 


362 


INVESTIGATION   OF   NATIONAL   BANKS. 


Certificates  of  deposit  and  other  claims  are  to  be  proven  by  affidavit,  and  to  your 
satisfaction.  They  can  not  he  used  as  offsets  against  indebtedness  to  the  hank.  In  all 
cases,  whatever  constitutes  the  evidence  of  indebtedness  upon  which  ii  claim  against 
the  bank  is  based,  must  be  surrendered  to  you  upon  delivery  by  you  of  your  cer- 
tificate of  proof  of  claim. 

No  other  offset  is  allowed  than  money  on  deposit  belongiug  to  the  maker  of  a 
promissory  note  approaching  maturity  in  the  bauk,  which  may  be  applied  toward 
payment  of  such  notes. 

In  applying  such  deposits  in  this  way,  the  following  general  rule  may  be  observed^ 
If  the  depositor  is  the  maker  of  one  or  more  promissory  notes,  such  notes  may  be 
charged  to  his  account,  against  the  amount  to  his  credit  as  depositor,  provided 
that  such  amount  is  sufficient  to  cover  the  aggregate  of  such  notes;  or,  if  not  so 
sufficient,  then  provided  it  is  made  sufficient  by  an  additional  deposit.  Care  nnist 
be  taken  against  allowing  the  depositor  to  api)ly  his  deposit  on  a  secured  note 
while  unsecured  or  less  well-secured  obligations  of  his  are  unprovided  for;  nor 
should  deposits  be  applied  to  secure  obligations  of  which  the  makers  Jire  stock- 
holders in  the  bank,  unless  adequat(5  and  satisfactory  security  is  given  for  the  same 
amount,  or  so  much  thereof  as  m&y  be  necessary  for  the  payment  of  assessments, 
in  case  such  assessments  should  afterwards  be  laid  up  to  the  par  vulue  of  the  stock. 

When  the  deposit  is  less  than  the  aggregate  indebtedness,  including  stock  lia- 
bility, the  receiver  may  elect  where  he  will  apjdy  it  as  an  offset,  so  as  to  j)reserve  to 
his  trust  whatever  security  attaches  to  any  part  of  the  indebtedness.  Kotes,»when 
settled,  may  of  course  be  surrendered,  and  a  record  of  the  transaction  may  be  kept 
by  crediting  bills  receivalde  with  the  amount  of  the  notes,  and  debiting  cash  with 
the  amount  of  cash  received,  and  "offsets  allowed  and  settled"  with  the  amount  of 
deposit  allowed  as  offset. 

Special  deposits  and  collections  which  do  not  belong  to  the  assets  of  the  bank  may 
be  delivered  to  the  parties  owning  them,  but  great  care  must  be  exercised  that  the 
]>arties  to  whom  they  belong  are  not  indebted  to  the  bank,  and  that  they  are  the 
rightful  owners  of  such  deposits  or  collections. 

Except  in  emergency,  no  law  expenses  .should  be  incurred,  and  no  attorney  should 
be  em]>loye(l,  nor  attorney's  bill  ])aid,  without  the  matter  first  being  submitted  to 
this  office  ft>r  approval. 

In  the  matter  of  compromises  of  bad  or  doubtful  debts,  and  sales  of  real  estate  or 
pi.'rsoual  proj)erty,  the  following  process  should  be  observed: 

1.  Whenever  a  tlebtor  pro])oses  to  compromise,  and  upon  full  consideration  of  all 
the  information  obtainable  in  regard  to  his  ability  to  pay,  and  the  means  available 
for  compelling  him  to  do  so,  it  bt^comes  evident  that  the  debt  can  not  be  collected  in 
full,  the  receiver  should  submit  the  facts  and  the  proposition  to  the  Comptroller  of 
the  Currency,  accompanied  with  his  recommendation  as  to  whether  a  conij)romise 
should  or  should  not  be  made,  and  also  as  to  whether  the  terms  proposed  are  or  are 
not  the  best  obtainable. 

2.  Upon  being  advised  that  there  is  no  objection  on  the  part  of  the  Comptroller, 
the  receiver  may  present  to  the  court  a  petition,  based  on  a  statement  of  the  facts, 
all  interests  being  summoned  to  attend  as  far  as  practicable  by  representatives  of 
each  class. 

3.  If  an  order  of  the  court  is  mnd(^  aUowing  the  compromise,  the  receiver  shall 
transmit  the  rin-ord  to  the  Comptroller,  for  examination,  approval,  and  file. 

If  any  questions  arise  as  to  collections  or  offsets  which  you  may  find  difficult 
to  settle,  you  should  advise  this  office  of  the  situation,  and  you  will  receive  in- 
structions in  the  matter. 

Vou  will  be  expected  to  preserve  a  prudent  economy  in  the  administration  of 
your  trust,  an<l  no  expense  should  be  incurred  which  can  be  avoided  by  the  exer- 
cise of  business  tliiiit. 

The  form  of  notice  to  cre«lit<us  required  by  secticm  5235  of  the  Revised  Statutes 
of  the  I'uited  Stjite.s  is  ent'losejl,  which  you  will  please  have  inserted  in  a  news- 
paper ]>ublislied  in  accordance  with  law.  It  is  not  exx^ected  that  you  will  make 
extra  efforts  in  all  cases  to  notify  claimants  that  they  shouhl  come  forward  and 
prove  their  claims,  but  where  you  know  the  address  of  a  bona  Jide  creditor,  who 
would  not  be  likely  to  see  the  advertisement,  it  would  be  an  act  of  sini]>le  justice 
to  send  hi  in  a  written  notice. 

I  also  enclose  written  forms  for  the  transmittftl  of  moneys  to  the  Treasurer  U. 
S.,  and  notice  to  the  Comptroller  of  such  transmittal,  for  your  guidance.  You  can 
have  a  sufficient  number  of  these  printed  for  the  purpose. 

A  sufficient  number  of  the  proof  of  claim  and  the  receiver's  certificate  may  also 
be  printed,  and  they  are  to  be  forwarded  to  this  office  when  the  receivershix>  is 
closed.     Please  send  me  one  or  more  samples  of  (^ach  of  them. 

A  copy  of  the  compendium  of  the  mitional  banking  laws,  and  a  copy  of  the 
Comptroller's  last  report,  containing  a  synopsis  of  judicial  decisions  in  important 
national  bank  cases  have  been  forwarded  to  the  examiner  for  your  use. 


i  < 


h 


^ 


f 


INVESTIGATION   OF   NATIONAL   BANKS. 


363 


You  will  keep  this  office  fully  advised  by  letter  of  your  acts  and  proceedings, 
confining  each  letter  to  a  particular  subject  as  far  as  practicable.  Additional  in- 
structions will  be  given  you  from  time  to  time  as  may  be  necessary. 

If  you  find  paper  in  the  bank  upon  which  you  can  conduct  correspondence  you 
may  have  your  name  and  title  and  the  charter  number  of  the  bank  printed  in  any 
available  place  over  the  bank  heading. 

If  exchange  on  New  York  can  not  readily  be  procured,  remittances  to  the  Treasu- 
*rer  U.  S.  may  be  made  by  express  at  bankers'  rates.    Forms  of  advice  of  such  remit- 
tance and  notice  to  the  Comptroller  are  herewith  enclosed. 
Very  respectfully. 

Comptroller. 

Q.  The  reports  of  the  receiver,  as  they  have  been  made  from  time  to 
time,  are  the  papers  which  I  now  show  you  [handing  witness  papers]  ? — 
A.  These  papers  are  reports  made  by  Mr.  Kobert  M.  Yardley,  receiver 
of  the  Keystone  National  Bank  of  Philadelphia  for  four  separate  dates, 
June  30,  1891,  September  30,  1891,  December  31,  1891,  and  the  fourth 
and  last,  March  31, 1892,  and  which  is  the  last  report  received  from  the 
receiver. 

(The  papers  were  put  in  evidence  and  marked  Exhibits  17  to  20  inclu- 
sive.) 

Exhibit  17. 

Beport  of  the  condition  of  the  Ketjstone  National  Bank,  in  the  hands  of  receiver,  for 

the  quarter  ending  June  SOih,  1891. 

ASSETS. 


Assets  at  date  of  suspension,  viz : 

Bills  receivable  (schedule  with  first  re- 
port   

Other  assets  (schedule  with  first  report)  , 
Excess  of  bonds  over  circulation 


Total. 


$811,  062. 5] 

909,  848. 90 

5, 000. 00 


Good. 


Doubtful. 


$294,  380. 45  '    $372, 651. 29 

276,225.57  I      624,341.19 

5,000.00  I 


Total  assets  at  date  of  suspension. . . 
Additional  assets  coining  into  possession  of 

receiver  since  suspension  (Schedule  A). . . . 
Premium,  interest,  rent,  etc.,  received  since 

suspension  (Schedule  B) 


Total  assets  at  this  date 


DISPOSITION  OF  ASSETS. 

Amount  collected  b^  receiver  to  date: 

From  bills  recefvable  (Schedule  C) 

From  other  assets  on  liand  at  date  of  sus- 
pension (Schedule  D) 

From  oilier  assets  acquired  since  suspen- 
sion (Schedule  E) 

From  premium,  interest,  rents,  etc., 
(Schedule  F) 


1,726,511.41 

58, 505. 57 

76.92 


1,  785, 093.  90 


575,  606.  02 

47, 694. 95 

76.92 


623, 377. 89 


Total  amount  collected  by  receiver  . . 
Oflfsets  allowed  and  .settled  on  bills  receiva- 
ble (Scliedule  G) 

On  other  assets  (Sclie<hdo  (Ji ) 

Losses  on  }»ron]issory  notes  and  other  assets 
compounded  or  sold  by  order  of  court: 

On  bills  receivable  (Schedule  H) 

On  otlier  assets  (Schedule  H) 

Assets  on  haiul  at  date  of  this  report: 

Bills  receivable  (Stdiedule  J ) 

Other    assets    at   date   of    suspension 

(Schedule  K) 

Other  assets  acquired  since  suspension 

(Schedule  L) 

Amount  collected  by  Comptroller  from  pre- 
mium, interest,  etc.  (Schedule  M) 


Total 


47, 645. 42 

65, 359. 41 

32, 826. 46 

70.71 


145,902.00 

16.  309.  00 
23, 443. 52 


888. 76 

747, 708. 09 

835,054.71 

15, 787. 82 


1, 785, 093.  90 


41,892.73 

65, 274. 68 

32, 826. 46 

70.71 


140, 064. 58 

16,  309.  00 
23,  211. 92 


582. 42 

236, 178. 72 

202, 054. 05 

4, 977. 20 


996, 992. 48 
10, 810. 62 


1, 007, 803. 10 


5,352.69 
84.73 


Worthless. 


$144, 630. 77 
9, 282. 14 


153, 912. 91 


153, 912. 91 


400.00 


5, 437. 42 
"'"23i.'66 


623, 377. 89 


190. 31 

367, 298. 60 

623, 834. 55 

10,810.62 


1, 007, 803. 10 


400.00 


116. 03 

144,230.77 
9, 166. 11 


153,912.91 


y 


it. 

I 


V 

f 


I 


364  INVESTIGATION   OF   NATIONAL   BANKS. 

Report  of  the  condition  of  the  Keystone  National  Bank,  etc. — Continued. 

ASSETS— Continued. 


COLLECTIONS. 

Amount  colle<'teil  by  receiver: 

From  jrood  awsets 

From  doubtful  assets 

From  wort  bless  assets 

Suspense  at- 

Dif.  between  casb  and  collections 

(SchednloN) 

Amount  collected  by  Comptroller 


Total  collections. 


$140,  004.  .58 

6,  4;<7.  42 

400.  (H) 

4,517.88 

15.54 


150, 435. 42 


DISPOSITION  OF  COLI^CTIOXS. 

Casb  returned  to  Dep.  hy  W.  P. 
Drew 

Loans  paid,  and  other  disbursements 
(S(be<lule  O) 

Dividends  paid  by  Comptroller's 
cbecks 

Legal  expenses  paid  (Schedule  P)  .. 

Receiver  8  salary  i)aid  to  date 

All  other  expenses  (Scbednle  R) 

Balance  in  hands  of  Coniptroller 

Balance  in  hands  of  receiver  as  per 
statementof  receipt  sand  disburse- 
ments   


DisborsementA  and  balances. . 


11, 114, 82 
1,085.15 


111.25 

520. 00 

8, 058.  28 

132,952.38 


5, 993, 54 


150, 435. 42 


LIABILITIES. 


At  date  of  suspension : 

Collections  ac.  since  3, 20, 1891 .. . 
Individual    deposits  (schedule 
with  first  renort) 

12,544.75 

1,300,513.07  1 
29.559,46  i 
19, 020.  21 

7,971.91 

10,  .573. 47 
926.  748. 18 

3,170.02 

334,  2H0.  60 

0, 120.  00 

43,  701.  51 

At  date  of  report: 

Claims   proved,  for  liabilities, 
shown  ov  the  b(M>ks 

150, 059. 45 
726,  748. 18 

Claims  in  dispute  (S<!hedule  S).. 
Liabilities  not  proved,  as  shown 

bv  the  b(>ok.s  (S<'he<lule  T) 

Liabilities  canceled  by  ofiset  and 

otherwise  (.'v-heilule  U) 

Cogtin^^ent  liabilities  discharged 

(Schedule  V) 

Deposits  made  3, 20, 1891 

Collections  in  ac.  since  3,  20, 189i  - 

Certificates  of  deposit  (scheilule 

with  first  renort) 

1,576,541.91 
40. 805. 64 

Due  to  national  banks  (schedule 
with  first  renort)    

Claims  in  disnute. -• 

Total  as  per  contra 

Due  to  other  banks  and  bankers 

(schedule  with  first  report)  . . . 

Due  clearintr  huuse  SAS ......... 

Dividends  unnaid 

Duebills  outstanding 

Total 

2,094,215,18 

1 

2, 694,  215. 18 

Claims  proved  as  above 

Claims  established,  not  on  the  books  (Sche<lnle  W) 


Total  claims  proved 


150,  059. 45 
258.  24 

150, 317.  69 


Robert  M.  Yardley, 
•  Receiver. 

(Indorsed:)  Keystone  National  Bank  of  Philadelphia,  Pa.     Receiver's  quarterly  reiwrt.    June  30, 
1891.    R.M.  Yardfey,  receiver. 

Statement  of  receipts  and  dinhursements  by  the  reveirer  of  the  Keystone  National  Hank  of 
Philada.,  I*a.,  during  the  quartir  ending  June  SO,  1891. 


Receipts. 


From  bills  receivable,  as  shown  by 
Schedule  C 

From  other  assets,  as  shown  by  Sched- 
ule D  

From  other  assets,  as  shown  by  Sched- 
ule E  

From  premium,  interest,  et*;.,  as 
shown  by  Schedule  F 

From  shareholders,  as  shown  by 
Scheduled 


Total  receipts  during  the  quar- 
ter  

Balance  on  hand  at  date  of  last  report. 

Suspence  account 

Ditt'erence  between  cash  and  collec- 
tions  


Total  to  be  accounted  for 


Amount. 


$47,  645. 42 

05,  359. 41 

32,  826. 46 

70.71 


145,  902. 00 

"'4,'5i7.88 

15.54 


150,435.42 


Disbursements. 


Loans  paid,  and  other  disbursements, 

as  shown  by  Schedule  O 

Legal  expenses  paid,  as  shown  by 

Schedule  V 

Receiver's  .salars  i)aid  to  date 

All  other  expenses,    as  shown    by 

Schedule  R 

Remittances  to  ComptroUer 

Returned  to  depositors  by  W.    P. 

Drew 


Amount. 


$1,685.15 

•    111.  25 
520. 00 

8, 058. 28 
132, 952.  38 

1, 114. 82 


Total    disbursements    during  i 

the  quarter I    144. 441. 88 

Balance  in  hands  of  receiver , . . .         5, 993.  54 


Total  aooonnted  for. 


150,435.42 


*.  -w* 


/ 


INVKSTIGATION    OF    NATIONAL    BANKS. 


365 


Schedule  A. — Quarter  ending  June  20,  1S91.     Additional  ametH  coming  into  possession 
of  the  receiver,  since  suspension,  of  the  Keystone  National  Bank  of  Philada. 


Description  of  assets. 


Memo.  John  Hayes ■ 

Ck.  guarantee  T.  &  S.  D.  Co.,  Robt.  Young 

•'    Drexel  &  Co.,  Robt.  Steel 

"    Central  Trust  &  S.  D.  Co.,  \Y.  H.  Harris  &  Co 

"  "  "  "        "     McFadden  Co 

"    R.E.  ••  "        "     John  Campbell 

'•   De  Hoven  &  Townsend,  J.  R.  Chauseu 

Overdraft  F.  C.  Geipel,  error  in  ledger 

W.B.Jones,     "      "      "      

Error  in  1st  report  of  Krager  overdraft 

i.      11    ti        i>       n   Kvle  " 

Pro.  fees  on  ck.  Citizens  l^I^at.  Bank  Balto 

Note  payable  "         "        "         "     

Collection  items,  Boston,  Mass 

"        Chicago,  III 

Camden,  N.J 

Norristown,  Pa 

AsheviUe,  N.  C 

Batavia,  N.Y 

Lancaster,  Pa 

W.  Chester,  Pa 

Richmond,  Va 

Balto.,  Md 

Cha8e,N.  Y 

Media,  Pa 

Wilmington,  Del 

Washington,  D.  C 

Harrisburg,  Pa 

Toronto 

Pittsburg  Met.  Pa 

W.Philada 

Reading,  Pa 

Quebec 

Scranton 

Overdrafts,  corrections  of  Ist  report ■ 

Caah. 


Good. 


«« 

41 

14 

41 

«4 

•4 

44 

4. 

4t 

41 

4( 

44 

44 

41 

4« 

M 

M 

(4 

<t 

$.iO. 
240. 

IL 
240. 
221. 
5(H). 

10. 
1. 

28. 

lo'. 

1. 

150. 

2.097. 

6,  016. 

1,  079. 

151. 

79. 
5U. 

64. 

19. 

38. 

10. 
671. 
324. 

22. 
110. 
101. 

51. 
418. 

10. 
108. 

35. 

49. 


00 
IKt 
35 
00 
40 

45 

70 
54 

20 
00 
94 
65 
02 
75 
31 
69 
33 
90 
40 
56 
83 
72 
52 
10 
73 
75 
78 
51 
66 
05 
45 


Doubtful. 


Manhattan  Life  Insurance,  J.  Bardsley 

Chase,  N.  Y.,  error  in  remittance 

Chester,  Pa.,  fees 

Trades,  N.  Y.,  draft  returnecl  unpaid 

Chase,      "  "  "  "      

Boston,  Mass.,    "      to  Trades,  N.  Y.,  returned 

Pittsburg,  Pa.,  draft 

Domestic  collection,  W.  E.  Hinch 

•'  W.F.Shaw 

Items  3, 19  and  3, 20,  '91  omitted  in  Ist  report. . . 


6. 

487. 

i. 

28, 024. 

2,609. 

2,002. 

47. 

125. 

350. 

596. 


00 

00 
50 
02 
50 
X)8 
02 
35 
00 
00 
19 


$10,810.62 


47, 694. 95 


10, 810. 62 


Schedule  B. — Quarter  ending  June  30,  1891.    Premium,  interest,  rent,  etc.,  received  by 
the  receiver  of  the  Keystone  National  Bank  of  Philada.,  Pa.,  since  suspension. 


From  what  source  collected. 


Int.  on  »  277, 
••  "  it  142, 
'•  "  ^257, 
••  "  »  69, 
"  "  »  91, 
"  "  » 275, 
"  "  ;fl90. 
Pro.  fees,  B  142, 
5  182, 
»2,58, 
h  69, 
«  91, 
f  107, 
it  263, 
«222, 
It  190, 


ti 


it 
ii 

41 
4t 
4t 

• 
44 
4t 


paid  3,  21, 
"  5, 20, 
5,25, 
6,  10, 
6,  10, 
6,2^1, 
6,  30, 
5,20, 
6,3, 
6,5, 
6,10, 


due 


G.  B.  Aldrich, 
John  Mair 
J.  W.  McCafferty,  " 
Wm.  Calhoun,        " 


(t 
ti 
II 
(I 
it 
II 
ti 
ti 
it 
ii 


6,12, 

6,12, 
6,20, 
6,30, 


E.  C.  Richmond, 
J.  F.  Portuondo, 
John  Mair, 
A.  Koebler,  jr., 
Isaac  H .  Evans 
Wm.  Calhoun, 

H  it 

Eline  &  Bro., 
Koch  &  Co., 
Bradford  Mills, 
J.  F.  Portuondo, 


tt 

tt 

tt 

ti 

ti 

it 

It 

it 


Mch.  18th 

Apl.  20th 

May  23  . . 

Mar.  20. . 

Apl.  20  . . 

demand. . 

June  6th 

Apl.  20.. 

June  1  . . 

May  30.. 

Mai-.  20  . 

Apl.  20  - 

June  10  . 

May  20.. 

June  20  . 

June  6  .. 


Amount. 


$0.28 
7.85 
.47 
25.00 
15.47 
6.25 
4.16 
2.05 
2.05 
1.39 
2.05 
2.05 
2.50 
1.25 
2.05 
2.05 


76.92 


^-^ 


36G 


INVESTIGATION   OF    NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    15ANKS. 


367 


Schedule  C— Quarter  ending  June  SO,  1891.     Collections  by  tlie  receiver  of  the  Keystone 
National  Bank  of  Philadelphia,  Pa.,  from  Mils  receivable. 


SCHEDUI-E  C.-^Quarter  ending  June  SO,  1891— Continued. 


. 


Share 
No. 


277 

278 

279 

280 

281 

282 

283 

284 

285 

286 

287 

288 

289 

290 

291 

292 

293 

294 

295 

296 

297 

298 

299 

300 

301 

303 

305 

306 

307 

308 

209 

310 

311 

312 

313 

314 

315 

316 

317 

318 

319 

320 

321 

322 

323 

324 

325 

326 

328 

329 

330 

333 

334 

335 

336 

337 

338 

339 

340 

341 

342 

343 

344 

345 

346 

347 

348 

349 

350 

351 

352 

353 

364 

355 

356 

357 

358 

359 

860 


Maker  of  note. 


G.B.Aldrich 

Ephraim  Young 

Mart  in  Burke 

March  lirownback  Stave  Co. 

VV.W.  Wallace 

T.Hudson 

J.  M<-.CulIough 

J.  Mcll  wain  &  Co 

Juo.  F.  Vauleor,  jr 

Isaac  H.  Evans 

Henry  G.  Irvine 

Preston  Price 

Morris  Spackman 

C.  T.  Davis 

Alpha  S.  De  Lisia 

F.Strats  &  Son...' 

Richard  S.  Colluni 

W.  S.  Emerson 

H.  Heilbronner 

Thos.  Little  Si  Son 

Kirk,  Jolinson  &  Co 

(j.  S.  Snlin 

Thos.Botts 

A.  Vanier 

Joshua  Hartley 

James  Hart 

E.  R.  Bryan 

Qnintoii  Corw ine 

Abr.  B.  Paul 

W.  H.  Janes 

W.W.Kor 

Vicentd.  Portuondo 

F.Strats  &  Son 

Geo.  Myers,  jr 

C.  M.  &  R.  Tompkins 

Joan  MuUer 

B.  F.  Hance 

C.  M.  &  R.  Tompkins 

H.  T.  Morrison  <fc  Co 

Gu8.A.:Mull.r 

Geo.  W.  Gerkie 

J.  Gallagher 

Thos.  Leary 

W.H.Hahii 

Jas.  L.  Brown 

H.  Heilbronnrr 

W.  T.  Mcacrjin 

John  .J.  {'assidv 

W.  B.  Hnt<  liiiison 

L.  15.  ^lawson 

Willis  G.  Hale 

Herder  Cutlery  &,  Co 

H.  V.  Cleaver 

J.Rothschild 

William  Thome 

Hugh  Mci^eilc 

Thos.P.  Toner 

H.  T.  Morrison  &.  Co 

Hugh  McNeile 1 

. -do 

P.  B.  Hamer ■ 

H.  D.  E.  B.  Richards 

Chester  Co.,  (J.  T.  «fe  S.  D.  Co. . 

G.  A.  Alexander 

Isaac  B.  Maniicr 

Isaiah  Bender 

Jno.  Donahue 

S.S.Dager 

Kirk  Johnson  &  Co 

J.  A .  Flaersh  A.  Co 

Mashier  &  Bros 

Kirk  Johnson  &  Co 

W.R.Mc(lellan  

Kirk  Johnson  &  Co 

P.M.Hulett 

S.C.  Small  &  Co 

Rogers,  Jones,  &.  Moore 

Woolman  »fe  Anis 

J.  A.Flaer8h  &  Co 


Apr. 
Mar. 
Apr. 


Mar, 
Apr. 


When 
due. 


1891. 
Mar.  18 
20 
23 
22 
28 
23 
26 
28 
1 
30 
1 
3 
4 
4 
7 
6 
8 
8 
6 
9 
31 
10 
11 
4 
13 
12 
13 
17 
17 
16 
19 
19 
21 
23 
18 
21 
23 
21 
17 
27 
26 
28 
28 

:k) 

2 

26 

29 

."} 

5 

4 

6 

21 

8 

8 

9 

10 

10 

6 

12 

12 

12 

14 

29 

13 

13 

17 

17 

18 

19 

16 

20 

21 

25 


May 
Ai>r. 

May 


May 


Mar. 


26 

29 

Apl.     1 

Mar.  31 


Good. 


$36.  30 
l.^>0.00 
•JS2.  (K) 
140.  06 

i>0. 16 

70.02 

85.  00 
400.  00 
100.00 

50.00 
100. 00 
126.67 

55.  00 

50,  00 
2, «:«!.  50 

4(i.  44 
100.00 

73. 1 1 
133.00 
400.  00 
113.40 

50.  00 
l.'H).  00 
208. 25 
100.00 
100.  00 

93.  :{1 

100.  00 

101.  07 
205.  00 
1(M>.  00 

81.97 

46. 43 

200.  00 

250. 00 

100.  00 

1,645.10 

250. 00 

500.  00 

250.  00 

14.').  00 

150.  00 

181.68 

<)9.  95 

250.  00 

140.00 

200.  00 

lOit.  00 

200.  00 

00.  00 

200.  00 

184.33 

110.  (M) 

4, 000.  00 

64.  .')5 

100.  00 

200.  00 

1,  500.  00 

.50.  00 

.'K).  00 

100.  00 

200.  00 

100.  (H) 

75.  00 

.57.  85 

61.20 

167.  91 

200.  00 

243.  00 

255.  00 

145.00 

255. 15 

300.00 

255.15 

25.40 

55.25 

290.00 

125. 00 

280.00 


Doubtful. 


Worthless. 


A 


f 


Share 
Ho. 


Maker  of  note. 


361 

362 

363 

364 

365 

366 

367 

368 

369 

370 

371 

372 

373 

142 

143 

145 

161 

165 

256 

257 

169 

179 

174 

182 

185 

176 

184 

258 

187 

191#| 

197 

198 

69 

91 
195 
204 
187 

81 
107 
263 
205 

78 
206 
203 
209 
127 
150 
192 
200 
213 
218 
215 

83 
226 
221 
242 

80 
222 
243 
275 
220 

80 
229 
231 


Collins  &  Bros 

Jno.  Smith 

A.  W.  Turner 

M.Taft8 

C.  S.  Sullivan  &.  Co 

J.  B.  Dunphy 

Hanalsan  Bros.  «fc  Co 

J.  A.  Wilson 

Allen  Dumas  &.  Thompson 

W.  J .  Thompson 

Allen  Dumas  &  Thomp.son 

J.  H.  Emerson 

Lee  Wolf  it  Bro 

John  Mair 

do 

L.  H.  Patterson 

H.Irvine 

Andrew  Hughes 

Isaac  H.  Evans 

J.  W.  McCaflerty 

Chas.  n.  Lynch 

Mary  Harley 

Valleo  Bros.  &  Co 

Adam  Koehler,  jr 

Jacob  Greer 

Jno.  T.  Scott,  jr 

Geo.  W.  'Smith  <fc  Co 

Issac  H.  Evans 

Mrs.  E.  S.  Toplis,  part  pay't 

Jno.  S.  Mcll  vain,    "        "    

J.  S.Mnrtrie,  "        "     

W.  E.  Hering 

Wm.  Callioun 

do 

Bonner  &  Eisler 

Thos.  H.  Hunter 

Mrs.  E.  L.  Toplis,  balance 

John  G.  Divine 

Klein  &  Bro 

Koch  &  Co 

H.  W .  Kelsey ,  part  pay't 

D.  Chambers 

Chas.  J.  Thatcher . .'. 

Newton  K.  Regar 

C.  B.  Keevcs 

Aman  &  Bro.,  part  pay't 

Thonuis  Brown,  "       "     

Jno.  Flaig  &.  Co 

John  Pike 

J.  Henry  G(^rcke,  part  pay't 

Robert  Nichol 

Geo.  W.  Kendrick,  jr 

Sallie  M.  Baker - 

Jno.  T.  Dunlap 

Geo.  A.  Schafer 

Sallie  M.  Baker 

Preston  Price,  part  pay^t 

Bradford  Hills  Land  Co.,  part  pay't 
J.  Henry  Hayes 

E.  C.  Richmond  Co.,  limit 

C.  E.  Wvraan 

Preston  Price,  part  pay't 

N.  Van.Beil 

Harry  M.  Dixey  <fe  Co 


When 
due. 


May 

Apl. 
May 


1891. 
Apl.    4 
3 

4 

9 

(I 

21 
23 
24 
23 
5 
3 
7 
30 
20 
20 
19 
21 
23 
23 
23 
27 
30 
29 
1 
r> 
29 
3 
30 
6 
7 
9 
9 
20 
20 
8 
12 
6 
6 
10 
20 
June  12 
Apl.     1 
June  12 
12 
14 
14 
18 
7 
10 
16 
17 
17 
13 
27 
20 
10 
3 


June 

Maj^ 
June 
May 
June 


Mar. 
Apl. 
June 


Apl. 
May 


Less  amt.  due  Lancaster,  retained  as  an  offset 
by  them  from  collections  made  of  bills  dis- 
counted, Nos.  350,  353,  and  355 


Mar. 
June 


Apl. 
June 


July 
Apl. 
June- 20 
July  13 
Demand 
June  19 
Apl.  3 
June  30 
30 


Good. 


$12(».  00 
200.  00 
280.  00 
142.  50 
290.  00 
(U.  38 
200.  00 
100.  00 
280. 00 

1,  oo:{.  37 

280.  00 

86.77 

.WO.  00 

1,570.42 

2, 100.  00 

231.00 

6.'.  00 

101.  r.o 

207. 70 
40.  00 
120.  00 
100. 00 
206. 88 
75 


Doubtful. 


9i 


1.  /; 


401.80 

100.  00 

1.  345.  39 


100. 
350. 
200. 


00 
00 


200. 00 


75. 

300. 
300. 
150. 

66. 
750. 

33. 
225. 


00 
00 
00 
00 
01. 
00 
88 
CO 


313. 
126. 
2'). 
100. 
400. 
288. 


.59 

.50 
00 
00 
00 
68 


1,  200. 

1,  000. 

50 


00 
00 
00 


3,  500, 
54, 

5). 
25. 

.'>o;i, 
r)00, 


00 
22 

00 
00 
00 
00 


42, 314.  54 


421. 81 


41, 892. 73 


Worthless. 


$1.54.00 


1.835.21 

1, 835.  22 

157.  50 


400.00 
453. 47 
317. 29 
100.00 


100.00 


$400.00 


5,  352.  69 


400.00 


'II 


5,352.69 


400.00 


368 


INVESTIGATION   OF   NATIONAL   BAITkS. 


Schedule  D. — Quarter  endinff  June  SO,  ISOl.  Collcciions  from  ''other  aftsctx,"  on  hand 
at  date  of  suHpension,  by  the  receiver  of  the  Ketfsione  National  Bank,  of  PhUadel- 
phia,  Pa. 


Description  of  assets. 


1 


Amberly,  G«o 

Burke,  P.  C 

Crawford,  L.  F 

Collum,R.  S 

Dengler,  R.  H 

Em8,H.C 

Geipet,  F 

Harrington,  E.  S 

Knauff,T.C.  C« 

Kerbaugh,J.  F 

Kel8ey,H.  W - 

Lee,  HattieL - 

Longacre,  A.M 

Lesley,  E.W 

Lucas,  Sam'l 

McBride,  Mrs.  J.  W ,. 

McGlade,  Mary 

McGowan,  A.  W 

Miller,  J 

Nolan  &.  Bro 

Pattison,  J.  B 

Ridley  Build.  A  880 

Sargent,  "W.,jr 

Stockton,  N.A 

The  Ba<'.ku8  Portable  Steam  Heating  Co 

linger,  A 

Wenrick,  A.  B 

Asheville,  N.  C 

Citizens'  Nat.  Bank,  Balto 

Nat.  State  Bank,  Camden 

Del.  Co.  Nat.  liank,  ('heater.  Pa 

Ft.  Dearborn  Nat.  Hank ,  ('hicago 

Ist  Nat.  Bank,  Conshohocken 

Doylestown  Nat.  Bank 

Frankford  2d  Nat.  Bank,  Philad'a 

German  town  Nat.  Bank 

Ist  Nat.  Bank,  Harrisbnr^r 

Integrity  Trust,  etc.,  Philad'a 

J  enkintown  Nat.  Bank 

Manayunk       "        "    

Ist  Nat.  Bank,  Media 

Northwestern  Nat.  Bank,  Norristown 

Merchants  and  Manufacturers  Nat.  Bank,  P'b'gh.,  Pa 

National  Iron  Bank,  Pottstown,  Pa 

Sale  Deposit  Bank,  Pottaville 

Northern  Savings  Fund,  Philad'a 

Ist  Nat.  Bank,  Nonistown 

Keystone  Nat.  Bank,  Read ing.  Pa 

1st  Nat.  Bank,  Bichmond,  Va 

Ist  Nat.  Bank,  Scranton,  Pa 

German  Bank,  Wheeling,  W.  Va 

W.  Philada.Bank 

Farmer's  Nat.  Bank.  W.  ( Chester,  Pa 

Union  Nat.  Bank,  Wilmington,  Del 

N.J.  Trust  and  S.Dep.  Co.,  Camden,  N.J 

Caniden  Safe  Dep.  Co 

Tradesmen's  Trust  Philada 

Industrial  Trust 

Tradesmen's  N at.  Bank,  N.  Y 

Chase  Nat.  Bank,  N.  Y 

John  Hayes,  on  account 

9, 13, '90,  S.  N.  Broadbent,  on  account .•. 

Cash,  3,  20,  '91,  ck.  L.  Dolman,  Chester.  $40,  <ash  attached 

^^^10 II  .,«,««»«•••■••■■•■•  .•«>•••«•>  •»•••■■•-•-•-■••••»••••••••••■  >■••••> 

Memo.,  advances  tocl'ks 

Mutilated  coin...... ..................•.••••..••.•.•••••-•«•••.•••...■ 


Good. 


3, 


2, 


2, 


1, 


41, 


$3. 
2. 

S. 

5. 

31. 

17. 

39. 

2'22. 

240. 

1. 

4. 
2L 
36. 

9. 
21. 

4. 

70. 

19. 

4(). 

378. 

•L 
4. 

14. 
5. 

60. 
053. 
556. 
545. 
822. 

25. 

31. 
606. 
579. 
182. 
242. 

58. 

96. 

29. 
7. 
678. 
103. 
290. 
542. 
243. 
700. 
247. 
419. 
433. 
594. 

92. 
150. 
205. 
679. 
443. 

66. 
7.-)7. 
765. 

18. 
100. 

40. 
121. 
895. 
577. 


98 
79 
72 
Ml 
90 
70 
13 
35 


Doubtful. 


32 
47 
86 
00 
51 
77 
03 
07 
00 
00 
85 
80 
19 
25 
56 
00 
67 
76 
29 
21 
81 
61 
77 
47 
38 
03 
10 
13 
75 
90 
50 
25 
03 
50 
08 
00 
34 
14 
29 
63 
21 
18 
80 
29 
37 
15 
74 
04 
42 
00 
32 
02 
65 
00 
00 
01 
22 
46 


$84.73 


65,274.68 


84.73 


INVESTIGATIQN    OF   NATIONAL   BANKS. 


369 


Schedule  Y..— Quarter  ending  June  SO,  1891.     Collections  of  ''other  assets,'^  acquired 
since  suspension,  by  the  receiver  of  the  Keystone  National  Bank  of  Philada.,  Pa. 


Description  of  assets. 


Memo.  John  Hayes . .  • 

W.  B.  Jones,  overdraft 

Pro.  fees  on  ck.  Citizens'  Nat.  Bank, 

Balto 

Collections  items.  Citizens'  National 

Bank,  Balto 

Note 

Collection  items,  Boston,  Mass 

Chicago,  111 

Media,  Pa 

Reading,  Pa 

Scranton,  Pa 

Tradesman's,  N.  Y. . 

Chase,  N.  Y 

W.PhU 


Good. 


$50.00 
28.70 

L20 

10.56 

150.00 

3, 944. 75 

2, 936. 03 

324.45 

108.66 

49.95 

20,011.28 

3, 281. 41 

10.51 


Description  of  assets. 


Collection  items,  W.  Chester,  Pa 

Wilmington.  Del. . . 

Morristown,  Pa 

Toronto 

Lancaster,  Pa 

Cash 

Collection  items,  Pittsburg,  Pa.,  Met 
Bank  of  Batavia,  N. 

Y 

Asheville,  N.  C 

Quebec 

Harrisburg,  Pa 

Richmond,  Va 

Domestic  collections,  Wm.  E.  Hinch. 

W.  F.  Shaw  . . . 


Good. 


$19.90 
22.52 

151.75 

51.75 

64.  .33 

6.00 

418.  78 

511.69 
79. 31 
35.05 
44.98 
38.40 
125.00 
350.00 


Schedule  Y.— Quarter  ending  June  SO,  1891.    Premium,  interest,  rent,  etc.,  collected  by 
the  receiver  of  the  Keystone  National  Bank  of  Philad.  Pa. 


Int.  on  No.  277,  paid  3, 21,  G.  B.  Aldrich, 


No.  142, 
"  No.  257, 
"  No.    69, 
"  No.    91, 
"  No.  275. 
Pro.fee8.No.l42, 
No.  182, 
No.  258, 
No.    69, 
No.   91, 
No.  107, 
No.  263, 
No.  222, 


it 
tt 
ii 
tt 
it 
** 
«t 


due  Mch.  18  . 

"    Apl.20.. 

"    May 23.. 

"    Mcii. -20.. 

"  Apl.20.. 
6, 24,  E.  C.  Richmond  &  Co.,  [demand 
5.  20,  John  Mair,  due  Apl.  20  .. 


5, 20,  John  Mair, 

5, 25, 1.  W.  McCafferty, 

6, 10,  Wm.  Calhoun, 


6, 3,  A,  Koebler,.ir., 
6,  5,  Isaac  H.  Evans, 
6, 10,  Wm.  Calhoun, 

It  u 

6, 12,  Kline  &  Bro., 

"    Koch  <fe  Co., 
6, 20,  Bradford  Mills  Co., 


June  2. 
May  30  , 
Mch.  20. 
Apl.  20. 
June  10. 
May  20.. 
June  20. 


$0.28 

7.85 

.47 

25.00 

15.47 

6.25 

2.05 

2.05 

1.39 

2.05 

2.05 

2.  50 

1.25 

2.05 


70.71 


Schedule  G.— Quarter  ending  June  SO,  1891.     Offsets  allowed  and  settled  by  the  receiver 

of  the  Keystone  National  Bank  of  Philadelphia. 


To  whom  allowed  and  character  of  indebtedness. 


On  other  assets. 

Returned  items,  Mer.  &  Man.  N.  Bk.,  Pittsburg,  P.  N.  Houck,  S.  F.  Whitman, 
depositor 


Do. 


Farmers'  Nat.  Bank,  West  Chester;  Kent  Iron  and  H'dwareCo. 

Kendall 

Union  Nat.  Bank,  Wilmington,  Del. : 

E.  Hart;  D.M.Osborne  &  Co 

R.J.Ford;       .       "  

W.A.Scott;  "  

Ft.  Dearborn  N.  Bk  : 

Money  order,  F,  N.  Davis 

Lord  Owen  &  Co.;  J.  F.  Portuondo 

Do 

Do 

Folsom  Si.  Mayer;  J.  F.  Portuondo 

G.  S.  Ricker,  agt. ;  D.  M.  Osborne  <fe  Co 

A.  R.  Ashumet;  "  

G.  S.  Ritter,  agt. ;  "  

FredSmith;  "  

O.J.Craig;  J.  M.Walsh  &  Co 

E.J.  Cleveland  Co.;        "        

Nat.  State  Bank,  Camden,  N.  J. : 

A.J.  Drake  ;D.M.  Osborne  &  Co 

E.  R.  Pierce ;  H.  L.  McMeroway 

S.H.Kelly;  W.  Riddle 

Fillon  Bros.;  Nace  &  Swartley • 

Nat.  Bank  of  Commerce,  Boston : 

Dft.;  W.  Walcom  &  Co.;  J.J.Pyle 

Second  Nat.  Bank,  Philada. : 

City  treasurer 

3792 24: 


McLear  &. 


Doubtful. 


$52.25 
47.35 

402. 15 

43.58 
62.27 
66.29 

15.00 

600.88 

886. 28 

518.58 

163.10 

11.50 

28.50 

15.90 

57.65 

34.44 

27.58 

19.58 

201. 12 

51.36 

55.47 

403.16 

4,000.00 


^ 


■ 


370 


INVESTIGATION   OF   NATIONAL    BANKS. 


Schedule  G. — Qtiarter  ended  June  30, 1891.   Offset  allowed  and  settled,  etc. — Continued. 


To  whom  allowed  and  oharacter  of  indebtedness. 


On  other  cuaeta — Continued. 

First  Nat.  Bank,  Kiohraond,  Va. : 

Money  order ;  F.  A.  Da  vis 

R.  H.  Stratton ;  J.  M.  Walsh  &  Co 

J.W.Johnson  "  

Do 

Tradesmen's  Nat.  Bk.,  N.  Y. : 

Dft.  on  Boston  Nat.  Bk.  ConnneiT*',  Hostun 

"     '*    New  York;  Wanamakrr  &.  Brown 

First  Nat.  Bank,  Media;  A.  F.  Bell :  Hel.v  &  Liiffer 

(ierraantn.  Trust  and  S.  D.  Co.  (a«l(litional  as-snits.  Sdied.  A) ;  Robert  Young: .. 

Drexel  &  Co.  • '  '  •  Ilob't  Steel 

Central  Savings  F.  T.  and  S.  D.  Co.  "  "  Central  S.  F.  T. 

andS.D.Co 

Do 


GrOOd. 


Re^l  Estate  Trust  Co.  (additional  assiiits,  Srliodule  A.);  John  Campbell. 

Dr.  Haven  &  Townsend  '•  J.  11.  (>laiison , 

Retd.  check ;  cash  items ;  Nace  and  Swart  ley 

Protested  check : 

F.  A.  Maguire;  cash  items;  G.  AV.  Cl(»tlii»'r 

And.  McClus;  "  Jno.  Young 

W.H.Smith;  "  J. J.  Duglir 

B.M.Cooper;  "  E.M. Cooper 

W.Calhoun;  "  D. T.  T.  Xirliols 

J.  Kemble  Building  account ;  cash  items ;  J.  Ke vnolils,  jr 

J,  A.  Kelly  &  Co. ;  "  J.  .\.  Kelly  &  Co 

W.J.Baker;  "  W.,T.  Baker 

Jacob  Myers;  "  JaeobMyers 

J.  W.  Catharine,  jr. ;  "  city  treasurer 


Do 
Bo 
Do. 
Do. 


$15.  00 

25.40 

18.  U2 

7.80 

2. 002. 02 

4,  J>58.  04 

501.  70 

240.  00 

11.  :i5 

240.  00 

221.40 

500.00 

10.45 

11.36 

32.06 


75.00 

*  'i79.'87 

43.08 

2:{9. 12 

75.07 

2, 310. 18 

285.00 

600.00 

35.11 


Doubtful. 


$20.  00 

r*.  60 

50.00 


156.00 


No. 


291 
294 
302 
304 
310 
327 
331 
332 
333 
83 
275 
183 
190 
230 
202 


Maker. 


On  biUs  receivable. 

Alphas  S.  De  Lessa. . . . 

W.S.Emerson 

Jno.  O.  Bowman 

F.  A.  Davis 

Vicenti  Portuondo 

F.A.Davis 

Ferd.AV.  Noler 

J.  G.  G(»s<!li 

Herder  Cutlery  Co 

Sallie  M.  Baker 

E.  C.  Richmond  Co.,  lim' 

F.A.Davis 

J.  F.  Portuondo 

H.VanBeil<fe  Co  ... 

F.  A.  Davis,  treas... 


t'd. 


Endorser. 


A  Ipha  S.  Do  Lessa . 

W.  S.  Emerson 

Jno.  O.  Bo wnum 

A.  R.  Tlionias 

Vi«;e!iti  J'ortuonilo. 

W.  E.  ilerins 

Ferd.  W.  Noler 

J.  '^.  Me<iiii 

Herder  Cutlery  Co. 

Sallie  M.  Baker 

E.  C.  Rii^hmond  Co., 

F.A.Davis 

J.  F.  Portuimdo 

H.  VanBeil&Co.. 
W.  S.  Griffith  &  Co. 


li't'd 


Maturity 


1891. 

Apl.     7 

8 

'•       13 

"      14 

"      18 

May     2 

"       6 

7 

Apl.  13 

Demand 

June    3 

"       6 

"      30 

"      10 


Amt.  due  Lancaster,  held  by  them  from  collections  made. 


On  other  assets,  amount  fVom  sheet  No.  1 

Check,  J.  W.  Catharino,  cash  items  citv  treasurer 

"  Drexel  &  Co.,  from  checks dep.,'3, 20,  J.  D.  Laws  &  Son. 
Item  Tradesmen's  N.  Bk.  N.,  Y.,  returned  Crane,  Parris  &.  Co. . 
Protest  fees,  J.  F.  Portuondo 


Good. 


$169. 50 

1.89 

1,3<K).  00 

2, 001 ».  00 

1,418.03 

300.  00 

200.  (H) 

200.  CO 

40.67 

11.32 

2,445.78 

1, 000.  00 

5, 000.  00 

1,  300.  00 

500.  00 


15,  887, 19 
421. 81 


16, 309. 00 


20, 411. 92 

2,  200.  00 

92.  50 

501.  29 

6.21 


Doubtful. 


$231.60^ 


23,211.92 


231.  60 


INVESTIGATION   OF   NATIONAL   BANKS. 


371 


Schedule  H. — Quarter  ending  June  SO,  1891.     Loss  on  other  assets  reported  by  the  re- 
ceiver of  the  Keystone  National  Bank  of  Philada.,  Pa. 


Name  of  debtor  and  character  of  indebtedness. 

Good. 

Doubtful. 

Worthless. 

H..  J.  &  Gr. R.  Cnunn.  overdraft,  error  in  ledeer 

$180. 00 

A.  L.Hummel,                     "          "        "        "     

$4.90 

W .  Sariieant.  ir.  overdratt.  duniicate  ot  ac 

.56 

•••••••. 

Error  inventory.  x>.  note  $97  instead  of  97  c.  in  cash  items 

$96.03 

Tradesmen's  Nat.  Bank,  N.  Y.,  credit  should  have  been  made  before 
bank  closed 

550.27 

Error  in  footing  of  other  assets  "  doubtful "  in  Ist  statement 

.90 
9.41 

............ 

Mutilated  coin 

Counterfeit  notes.  2  $10 

20.00 

Dif.  between  assets  and  disnosition  of  assets 

26.69 



582.42        190.31 

116.03 

Schedule  J- 


•Quarter  ending  Jan.  SO,  1891.  Bills  receivable  in  the  hands  of  the  receiver 
of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 


m 


No. 


1 
2 

3 

4 
5 
6 

7 
8 

9 

10 
11 
12 

13 
14 
15 
16 

17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 


34 
35 
36 
37 
38 

39 
40 
41 
42 
43 


Maker. 


L.  L.  Cann  . . 
M.  D.  Locoy. 


H.  B.  Driver 

Chas.  Lawrence. 
\ranDyke&Co. 
James  Kennedy . 


P.  Wallace 

James  McCormick. . . 

C.  C.  Lippincott 

W.  Scarborough 

H.  H.  Atkinson  &  Co 
H.B.  Driver 


G.  Byron  Morse 

Chas.  E.  Glentworth 
Edmund  Stewart . . . 
Morris  L.  Leslie 


W.F.Shaw 

John  Smith 

H.W.Kelsey 

Willis  G.Hale.  ... 

Wm.  Calhoun 

John  C.  Carberry  . 

Jas.  N.  Elliott 

Jas.  L.Allan 

John  M.  Driver... 

Alfred  Hindle 

Robert  Cams 

James  Morgan.... 

Robert  Cams 

James  L.  Allan  ... 
S.  E.  Packard,  agt . 


32  Harvey      Filley     & 
Sons. 

33  S.  E.  Packard,  agt.  . . 


do 

W.H.Brown 

James  Morgan 

D.L.Drew 

S.  E.  Packard,  agt. 


F.J. 


Primrose. 

, do 

Robt.  Canns . . . 
Chas.  McGlade. 
Wm.  H.  Moyer. 


Endorser. 


L.  L.  Cann 

M.  D.  Locoy.  E.  P. 

Goodman. 

H.  B.  Driver 

B.M.Goldberg 

Geo.  M.  Vickers 

Jas.  Kennedy,  presd., 

Atkinson  Bros. 

P.  Wallace 

Kejstone  Watch  Co., 

Atkinson  Bros. . 

do 

Atkinson  Bros 

Jno.  M.  Driver,  H.B. 

Driver. 

G.  Byron  Morse 

Wm.  Calhoun 

Edmund  Stewart 

C.   A.   Thompson,  J. 

Hayes,  treas 

W.F.Shaw 

John  Smith .., 

H.W.Kelsey 

Willis  G.Hale 

John  Hayes,  treas 

W.S.Wolford 

W.S.Wolford 

Faulkner  <fc  Allan 

John  M.  Driver 

F.  A.  Mitchell , 

Robert  Cams 

James  Morgan , 

Robert  Cams 

Faulkner  &.  Allan 

H.  E.  Packard,  H.  S. 

Packard. 
H.  Filley,  Aluminum 

P.  Co. 
H.  E.  Packard,  H.S. 

Packard. 

do , 

W.H.Brown 

James  Morgan 

D.L.Drew 

H.  E.  Packard,  H.S. 

Packard. 

F.  J.  Primrose 

, do 

Robt.  Canns 

Jno.  S.  McKinlay 

Jas.  R.  White,  man- 
ager, Granville  B. 

Haines,  M.E.  Lucas, 

adm.     est.    J.    C. 

Lucas. 


Due. 


ApL 


10, '88 
8, '89 


Feb'y  25,  '90 
Mar.  15,  '90 
Apl.  18. '90 
May      5,  '90 

28,  '90 
30,  '90 

30,  '90 

31, '90 

June     4,  '90 

Aug.  10, '90 


16, '90 
5, '90 
15,  '90 
Oct.     21,  '90 


Sept. 


Nov. 


Dec. 


28, '90 

5, '90 

23, '90 

24, '90 

23, '90 

3, '90 

5, '90 

7, '90 

22,  '90 

24,  '90 

25,  '90 

2e.  "no 

28,  '90 

30,  '90 

Jany.    1, '91 

2. '91 

3, '91 

4, '91 
5, '91 
7, '91 

10,  '91 

11,  '91 

20,  '91 
27,  '91 

27,  '91 

28,  '91 
29, '91 


Good. 


$400.00 


610.00 

60.00 

227.00 


1, 500. 00 
600.00 

2, 000. 00 
124.72 
144.50 


Doubtful. 


500.00 


500.00 


250.00 


2,500.00 


$183.  75 


100.00 
645.00 

675.00 

680.00 

694.  20 

1, 000.  00 


Worthless. 


1, 950.  00 
100.00 


2,000.00 
1.  000. 00 
598. 50 
1, 000. 00 
1,  000.  00 
1, 000.  00 
1, 400.  00 


900.00 


500.00 


$2, 437. 06 
100.00 

150. 00 


.^'d 


360.00 


590.00 


2,500.00 


3, 200. 00 
2, 500. 00 


6,000.00 

2, 895. 66 
2,  576. 77 


4,368.46 


•>T 


i  J 


} 


' 


.^'  • 


372 


No. 


44 
45 
46 
47 
48 
49 
50 
51 

52 
53 
54 


55 
56 

57 


58 
59 
60 

61 
62 
63 
64 
65 
66 
67 

68 

70 

71 
72 
73 
74 
75 
76 

77 
78 
79 
80 
82 
84 
85 
86 
87 
88 
89 
90 
92 

93 
94 
95 
96 

97 

98 
99 
100 
101 
102 
103 

104 
105 
106 
108 
109 
110 
111 
112 
113 
114 


INVESTIGATION   OF   NATIONAL   BANKS. 
Schedule  J. — Quarter  etiding  Jan.  SO,  1891,  etc. — Continued. 


Maker. 


Jas.S.  Allan 

Chaal  McGlade 

F.  J.Primrose 

D.  J.  Thompson 

Frank  J.  Primrose. . 

Chas.  McGlade 

Wm.  H.  Moyer 

W.   B.    Hutchinson, 

etal. 
Frank  J.  Primrose. . 

Chas.  McGlade 

Wm.  H.  Moyer 


Thos.  W.  Dickson ... 
Spring  Lake  Beach 

Impt.  Co. 
Wm.  H.  Moyer , 


Wm.H.  Moyer 

Jas.  L.  Allen 

S.  E.  Packard,  agt 

Thos.  E.  Warman 

Jas.  J.  King 

Robt.  Canna 

Penn  Roofing  Co. . 

Roht.  Canns 

Lewis  U.  Wiley  . . 


J.  H.  Reigle . 


Robt.  M.  Wiley. 


Wilson  E.  Allen.. 
Michael  Meagher. 
Jacob  Hartman... 
W.  J.  Simmons  . . . 
Jno.F.Zcbley  .... 
Wm.  M.  Stewart . 

Hugh  Graham 

D.  Chambers 

Clinton  V.  B.  Getty 

Preston  Price 

Mai'ie  Brolasky... 
Alfre«l  I).  Caniis.. 

John  J.  Pyle 

Wm.  B.  Greer 

Chas.  S.  Salin 

Excelsior  Hosiery  Co 

Wm.  Auld 

J.W.  Baker 

Reynolds,  Goodyear 
&Co. 

(/'has.  White 

Saml.  R.  Mink 

Wm.  J.  Simmons 

G.  W.  M.  Kigot 

Rich'd  S.  Galium 

M.  McNulty 

Robt.  M.  W'iley 

Emma  C  Reed 

Wm.  J.  Simmons 

A.  M.  Zane 

B.  H.  Davis 

James  B.  Carey 

Jacob  G.  Dietiick 

Wm.  J.  Simmons 

Chas.  P.  Herold 

Dean  C.  Osbom 

William  D.  Troupe  . . 

Charles  Beamish 

W.W.Watson 

Amos  O.  Chase 

John  McFadden 


Endorser. 


Faulkner  &  Allan  .. 
Jno.  S.  McKinlay  . . . 

F.  J.  Primrose 

Faulkner  &.  Allan . . , 

F.  J.  Primrose 

Jno.  S.  M<Kinlay .  . . 
Jas.  R.  White,  mgr  . 
Geo.  W.Shirley 


F.  J.  Primrose 

Jno.  S.  McKinlay 

Jas.  R.  White,  liiana- 

Ser;  G.  B.  Haines, 
[.  C.  Lucas,  admrs. 
est.  J.  C.  Lucas. 

James  Dickson 

Spring  Lake  Beach 
Impt.  Co. 

Jas.  K.  White,  mana- 
ger; G.  B.  Haines, 
M.C.  Lucas,  admr's 
est.  J.  C.  Lucas. 

Jas.  R.White,  manager' 

Faulkner  &  Allan  . . . 

H.  E.  Packard,  H.  S. 
Packard. 

H.  H.  Yard 

John  W.  Barron 

Robt.  Canus 

F.  A.Mitchell 

Robt.  Canns 

Robt.  M.  Wiley,  Phil- 
ip Lowrv. 

Harry  tfall,  Kyle, 
Berrv  ife  Co. 

Robt.  U.  Wiley,  Phil- 
lip Lowrv'. 

Thos  E.  "VVareman  . . 

August  Slaney 

A.H.  Moore 

Wm.  J.  Simmons 

John  J.  Pyle 

Kvle,  Berry  &  Co., 
limtd. 

Hugh  (irabam  Son. . . 

D.Chambers 

ClintonV.  B.Getty.. 

Heiirj'McHugh 

G.W*.  Marsh,  presdt. 

Alfred  D.  Canns 

John  J.  Pyle 

Central  Market  Co. . . 

G.  W.  Marsh 

C.  N.  Shellenberger. . 

John  Craig  &  Son 

Wm.  J.  Divine 

T.J.  Dunn  &.  Co 

Danl.  McArthur 

Central  Market  Co. . . 

Wm.  .1.  Simmons 

Geo.  B.  Heath,  P.  C 

Hill. 
D.&  J.C.Hobert&Co 

John  M.  Kyle 

Central  Market  Co. . . 

Emma  C.  Reed 

Wm.  J.  Simmons ..-. 

Matthew  Hall 

Kvle.    Berry    &.  Co., 

limtd. 

Geo.  W.  Clothier 

Alfred  B.  Wenrick  . . 

Wm.  J.  Simmons 

Chas.  P.  Herold 

Edward  H.  Fahey 

John  J.  Pyle 

Chas.  S.  Dungan 

John  L.  Galloway  ... 

Andrew  A^rshall 

Henry  McHugh 


Due. 


30, '91 

Feb.      5,  '91 

5,  '91 

10,  91 

12,  '91 

12,  '91 

13,  '01 
17,  '91 

Feb'y  19,  '91 
19,  '91 
23, '91 


21  '91 
Mar.   "1/91 

Feb'y  28,  '91 


Mar.     4,  '91 

7  '91 

Nov.   30!'90 


Dec. 
Mar. 


Apl. 


May 


May 


16,  '90 
11,  '91 
11,  '91 
14,  '91 

14,  '91 

19,  91 

20,  '91 

20, '91 

21,  '01 

23,  '91 

24,  '91 
25, '91 

25,  '91 
27, '91 
30, '91 

31,  '91 
1,'91 
2, '91 
3, '91 
7, '91 
16.  '91 
16.  '91 

16.  '91 

17.  '91 
1«,  '91 

18.  '91 
20,  '91 
20,  '91 

22,  '91 

22,  '91 

23,  '91 
25, '91 

29, '91 
29, '91 
30,  '91 
2, '91 
3, '91 
3, '91 
5, '91 

7, '91 
9, '91 
9, '91 

11,  '91 
11, '01 

12,  '91 
14, '91 

15,  '91 

15,  '91 

16,  '91 


Good. 


$2,  5W).  itO 


2,  500.  00 
i,  8ti0.  66 


2,500.00 


150.00 


300.00 

moo 

256. 66 

100.00 
150.00 


606.  50 
101.50 

'566.66 
140.00 


8L12 

325.66 
200.00 

i,  660. 06 

47.87 

i.  000. 00 

99.00 
275. 00 
418.  (K) 

400.00 
402.  72 

'*i66.'66 

63,47 
"72.66' 


1,000.00 
200.00 

90.00 


400.00 

iso.oo 


Doubtful. 


$1,050.00 


500.00 
359.00 


150.00 


Worthless. 


'356. 

"66' 

"i,'666. 

■  *  •  • 

66' 

"i,666. 

66 

::• 

1,200. 

00 

"*"i35. 

■  •  •  > 

00 

200. 

00 

"'"55. 

66 

"156. 

66' 

"*i25. 

66" 

"  "i95. 

66' 

*""272.' 

66* 

'"256.' 

195. 

66' 
00 

""i75." 
65. 

66' 
00 

""75. 

66' 

"m. 

1,000. 

66" 
00 

•  •  • 

$1, 976. 78 
"2,' 261.' 70 


4, 454. 01 


8, 105. 95 
'4,*3i6.'92 

5,666.66 
4, 506. 21 


4,019, 

'5,' 666 

6.200. 
1,863 


92 

66 

00 
00 


INVESTIGATION   OF   NATIONAL   BANKS. 
Schedule  J.— Quarter  ending  Jan.  SO,  1891,  e<c.— Continued. 


373 


I 


No. 


115 

116 

117 
118 
119 

120 
121 
122 
123 
124 
125 
126 
127 
128 
129 
130 
131 

132 
133 
134 

135 
136 
137 
138 
139 
140 
141 
144 
146 
147 
148 
149 
1.50 
151 
152 
153 
154 
155 
156 

157  I 

158  t 
159 
160 
162 
163 
164 

100 
167 

168  J 

I 

170  i 

171  I 

172  I 
17:{ 
175 

177  I 

178  I 
180 
181 
186 
188 
189  i 
191 
193 
194 
196 
197 
199 
201 
205 
207 
208 
210 
211 
212 
214 
216 


Maker. 


George  Howard,  et  al. 


J.  S.  Whitby . 
Aman  &  Bro. 


R.  g.  Gibbon. 
E.  E. 


Perry. 


Geo.  W.  Wright 

Thos.  Durham  &  Sons 

— do 

— do 

— do 

Charles  Zane 

Wm.  M.  Stuart 

Aman  &Bro 

E.  R.Bryan 

Geo.  W.Smith 

Milton  C.  Greiner 

Keystone     Watch 
Club  Co. 

...do 

...do 

...do 


Endorser. 


Lewis  Cassidy 

Jno.  B.  MacAflfee  . . . 

John  Nolen 

James  W.  Sayres . . . 

F.  M.  Freeburg 

C.F.  Turner 

B.  Frank  Cooling... 

S.  Robinson 

Wm.  N.Griffith.... 

C.  G.  Welch 

W.  R.  Fenner 

George  Rossiter 

Thomas  Brown 

— do 

— do 

— do 

— do 

— do 

— do 

— do 

Robert  M.  Wiley  . . . 
Wm.  J.  Simmons  . . . 

M.  E.  Brotlerick 

T.  W.  Man.ship 

Geo.  W.  H.  Smith  . . . 
R.  Reach 


Aman  &  Bro 

M.B.Dwight 

Morris  Spackman. 


Wm.R. Murphy  ... 

James  Birnie 

JohnCrjug  <fc  Son.. 
O.  C.  Bosbvshell  . . . 
Henry  H.  Yard  .... 

E.J.  Lex 

W,  L.  Lance 

Wm.  J.  Siiinnons. . . 

Anton  Aman 

Geo.  F.  Lowry 

E.P.Town.s.ud.... 
Etlgar  N.  Black.... 
John  S.  Mellvanie. 
Henry  H.Yaid.... 

Christian  Mack 

Henry  H.  Yard.... 

.J.S.MeMutriti 

W.J.  Simmons 

W.  M.Grithths  .... 

H.W.Kel.sev 

W.Y.  Warner 

Sam'l  Mcllvaine... 
Tho.s.  E.  Wanuan  . . 

Isaac  Brown 

Th(m.  E.  Wannau . . 

•    do 

John  McFadden... 


Jno.    A.   Forepaugh, 

Geo.  Holland. 
Philip  Lowry 

E.  R.  Hryan^ 

George  Kugler 

Geo.  A.  Perry,  M.Fore 

man. 
Geo.  W.  Wright 

F.  M.  Freeburg 

J  ames  McHenry 

Louis  Eichott' 

do 

Wm.  J.  Kelly 

John  M.  Kvle 

E.R.  Bryan 

do 

A.  B.  Wenrich 

W.K.Mitchell 

Atkinson  <fc  Bro 


-do 
.do 


Keystone  Watch  Club 
Co. 

Jno  B.  MacAfeo 

Frank  Farrel 

John  N  olen 

James  W .  Say  re 

W.  H.  Mitchell 

C.  F.  Turner 

Jos.  N.  Cooling 

Aman  &  Bro 

W.T.Alexander 

W.  J .  Jackson  &  Co  . . . 
JohnM.  Kyle 

do 

Thomas  Brown 

do 

do 

do 

do 

do 

do , 

do 

Ceutial  Market  Co 

Wm.  J.  Simmons 

K.  L.  McMenorny 

Chas  R.  Hamilton 

Geo.  W.  Clothier 

D.  &.  J.  C.  Noblit,  D. 
&  J.  C.  Noblit  &  Co. 

R.Q.  Gibbon 

J.  G-.  Ranisdell 

D.Oram  Young,  Jno. 

Craig  «fe  Son 

Jno.  O.  Bowman 

Central  Market  Co  . . . 

Daniel  Coogan 

O.  C.  Bosbvshell 

H.H.Yara 

Central  Market  Co 

Andrew  H.  Haig 

Wm.  J.  Simmons 

Geo.  W.  Clothier 

Philip  Lowry 

J.  G.  Ramsdell 

C.  A .  King.sbury 

C.C.  Haines 

H.H.Yard 

Robert  M.  Wiley 

H.H.Yard 

W.D.  Price 

W.J.  Simmons 

W.  T.  Alexander 

H.  W.  Kelsey 

W.J.Qnigley 

G.B.  Kus.sell 

H.H.Yard 

Central  Market  Co 

H.H.Yard 

do 

Henry  McHugh 


Due. 


18,  '91 

18,  '91 

19, '91 

Apl.    2'J,  91 

July    18, '89 


Nov. 

Jan'y 

May' 

Jany. 

May 

Nov. 

Dec. 

Jany. 

Oct. 

Jan  v. 

Feb: 

Mar. 


24, '89 
21.  '87 
15, '87 
'.'A).  '87 
29.  '87 
10.  '88 
28, '90 

16,  '1)1 
2, '90 

17,  '91 
2,  '91 

29,  '90 


Apl.    14, '90 

27, '90 

July    28, '90 


May 

A])l. 

Aug. 

June 

Xov. 

Dec. 

Feb. 

Dec. 
Nov. 

Oct. 

Mar. 

Apl. 

May 


June 
May 

May 


21,  '89 
18,  '90 
26,  '90 
11, '90 
9, '90 
12,  '88 
21,  '90 
14, '90 
14, '90 

26,  '90 

27,  '90 
31. '90 
18,  "89 

9, '89 
21. '89 

8, '90 
10, '90 
21, '90 
31,  90 
21,  '90 
20,  '91 
20,  '91 
2J,  '91 
23.  '91 
23,  '91 
23,  '91 

23,  91 
26,  '91 
26,  '91 


27,  '91 
27.  '61 

27,  91 

28,  '91 

29,  '91 

30,  '91 
30,  '91 
30,  '91 
30,  '91 

June  6.  '91 
6, '91 
6, '91 
7,  '91 
8, '91 
8, '91 
9,  91 
9, '91 
9, '91 
10,  '91 
12,  '91 

12,  '91 

13,  '91 

14,  '91 

15,  '91 

15,  '91 

16,  '91 

17,  '91 


Good. 


$133. 00 


Doubtful. 


$500.00 


Worthless. 


101. 62 


200.00  j. 
175.00  L 
407.  00 


238.20 
368. 12 
800.  00 
100.  00 
494.60 
80.00 

100.00 

150.  00 

3,  500.  00 

144.73 
150.  00 
90. 00 
312.  72 
419.  50 
150.  00 
102.  20 
452.11 
1,  000.  00 
500.  00 
151.. 50 
250.00 
221. 15 
250.  00 
250. 00 
250.  00 
250. 00 
250.  00 
250.  PO 
250.00 


175.  00 
450.  OJ 


$700.  00 
500.00 
287.50 

5,000.00 

1,150.00 

590.  (K) 

890.  00 

860.00 

2,  040.  (»0 


!■  r 


400.  00 
302. 21 
270.00 

250.  00 
183. 45 
200.  00 

i44.'i6* 

142. 15 

125.66' 

315.00 

75.  00 

100.  00 

400. 00 

i66.'66' 

756.66 
35."  96" 

•  •  B  •                   • 

j 

1 

1, 200. 00 
336.66" 

**32,'438.'72: 

iso.'oo 

540.  00 
1,000.00 

4, 006."  06 
400.00 

5, 300.  m 
6,  000.  (M> 

i,  570. 00 

"i,' 256.' 66 

1, 915. 00 

356.66 

1l 

I 


I 


} 


« 


374 


Ko. 


217 
219 
222 

223 
224 
225 
227 
228 
232 
233 
234 
235 
236 
237 
238 
239 
240 
241 
244 
245 
246 
247 
248 
249 
250 
251 
252 
253 
254 
255 

259 
260 
261 
262 
264 
265 
266 
267 
368 
269 
270 

271 
272 
273 
274 
213 


INVESTIGATION  OF   NATIONAL   BANKS. 
Schedule  J. — Quarter  ending  Jan.  SO,  1891,  etc. — Continued. 


Maker. 


Cox  &  Sons 

A.  J.  Kellogg 

Bradford  Hills  Land 
Co. 

Isaac  Fleming , 

Heniy  Kedman , 

.r.  L.  Crauiner 

Mary  H.  McGla<le  . . 
Const,  (yarpeiiter  . . . 
Geo.  W.  Smith  &  Co 

Harry  H.  Long 

James  Reily 

Mary  iMyer's 

Wm.M. Hirst 

A.  J.  Clemmer 

Fletcher  Pearsou . . . 
Bonner  <fe  Eisler .... 

Wm.  Khodes 

N.  Moritz 

Wayne  Stone  Co 

Excelsior  Hosiery  Co 

J.  L.  Cranmer 

Henry  H.  Yard 

James  Reilly 

Mc  Bride  Bros 

J.S.Carter 

W.J.Jackson 

Thos.  Chad  wick 

B.  M.  Stackhouse 

Excelsior  Hosiery  Co. 
Geo.  J.  Raymond  «fe 

Co. 
Clinton  Bnckwalker. 
W.  S.  Jackson 

C.  A.  Meloney 

Hughes  &  Bro 

Eraest  Red  ford 

Bureau  Carr  Co.  No.l 
Maurice  Landauer. . . 
\^%  xx&rr  •■■  .••■>■■•••• 

D.L.Drew 

James M.  Battersbv.. 
Dell  &  Jos.  C.  Nob- 

lit  &  Co. 

G.W.Marsh 

D.L.Drew 

Hortio  G.  Kem 

John  J.  Py  le 

J.  Henry  Gercke 


Endorser. 


Chas.  C.  Torr 

A.  G.  Kellogg.... 
Nelson  F.£vans. 


F.A.Davis 

J.  G.  Ramsdell 

Jos.  A.  Wilson 

Chjis.  McGlade 

J.  A.  Wilson 

Geo.  E.  Dearborn 

H.VanBeil  &  Co 

n.  J.  <fe  G.  R.  Crump  .. 

W.Riddle 

J.GKamsdell 

do 

Chas.  A.  Pearson 

S.  Black 

Matthew  Hall 

H.  G.  Bergman 

Wayne  Stone  Co 

Excelsior  Hosiery  Co. 

Chas.  McGla<le 

H.H.Tard 

H.J.  &G.R.  Cramp  .. 

McBride  Bros 

F.A.Davis 

Robt.  A.  Ja(;kson 

Chas.  H.  Hendrick 

Jno.  W.  Bouglitou 

Excelsior  Hosiery  Co. 
Jno.  E.  Potter  &.  Co. . . 

Dairymen's  Supply  Co 

H.  It.  Yard 

C.P.Melony 

J.  G.  Ramsrfell 

Ernest  Redford 

O.  C.  Bosbyshell 

Maurice  Landauer. . . . 

C.Harr ,.. 

D.L.Drew 

James  M.  BattcrMb\  .. 
Dell  &  Jos.  C.  Noblit 
&Co. 

G.W.Marsh 

D.L.Drew 

Horatio  G.  Kern 

John  J.  Pyle 

J.  A. Gercke..  


Date. 


July 


17,  '91 
17,  '91 
20, '91 

22, '91 
23, '91 
25,  '91 
27,  '91 
30, '91 
3, '91 
5, '91 
6, '91 
6, '91 
7, '91 
8, '91 
8, '91 
8, '91 
9, '91 
10,  '91 

13,  '91 

14,  '91 
17,  ,91 
17,  '91 
17,  "91 

17,  '91 
16,  '91 
19,  '91 

19,  '91 

20,  '91 
|21,  '01 

May    22. '91 

18,  '91 

18,  '91 

19,  '91 

20,  '91 
Demand  . . . . 


Good. 


$500.00 
350.00 


Doubtful. 


500.00 
90.00 


2, 000.  00 


$1,000.00 


1,345.39 
503.  68 


306.25 
15r».  00 
100.00 
600.00 


804.00 
4,650.66 


1,000.00 
1,000.00 


157.50 


1, 025. 00 


1,000.00 
566.66 


Worthless. 


$2,  600. 00 


3,000.00    ... 
700.00 


6,912.00    ... 


6,500.00 


500. 00 

675.00 

1,  400.  00 


3, 109.  67 


293.35 


II 
tt 
•• 
>• 
It 

t* 
«i 
it 


June  16, '91 


74.50 
"il.'vi 


1,000.00 


200.00 

i,  566. 66 


600.00 


2,000.00 

375.00 


Less  error  in  addition  Ist  report 


Schedule  H  with  clearing-house  collateral  for  loan . 


1, 210. 00 
900.00 
500.00 


8,000.00 


53, 859. 44 
.32 


73, 534. 80 


5:},  858. 12  i     73,  534. 80 
182,319.60  I  293,763.80 


236,178.72  ,  367,298.60 


905. 00 
1,000.66 


1,000.00 

j.'ii 


144, 230. 77 


144,230.77 


144, 230. 77 


Proof. 

Amountof  Ist  report $811,662.51 

Amount  paid  to  June  30,  '91 63, 954.  42 

Amount  on  hand  J  une  30,  '91 747, 708. 09 


On  hand. 

Good $236,178.72 

Doubtful 367,298.60 

Worthless 144,230.77 


747, 708.  09 


Paid. 

Goo4lcash $41,892.73 

G«»od  oflMcts 10,  '09.  00 

Doubtful 5,352.09 

Worthless iiMAM 

63,954.42 


INVESTIGATION   OF   NATIONAL   BANKS. 


375 


Schedule  K.— Quarter  ending  June  SOih,  1891.    Assets,  other  than  hills  receirahle,  in 
the  hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Description  of  assets. 


Overdraft$. 


R.  A.  Arthur 

H.  Askin 

H.  J.  Brady 

JohnBardsley 

.J.  M.  Battersby 

John  Barron , 

J.  M.  Bradford 

Beach  House 

C.E.Billen , 

O.  C.  Bosbyshell 

H.  Brown 

Chas.  Brown 

H.  L.  Bowman,  jr ^ 

Fannie  Buckheister 

Bureau  Car  Co.  No.  1 

J.  W.  Catharine 

Robt.  Cams 

Geo.  Canby 

Sarah  E.  Collier 

Wm.  Calhoun 

Geo.  E.  Cunimings 

Sarah  Crump 

H.  J.  <fe  G.  R.  Crump,  error  $180,  see  Sched.  H 

John  Crump 

Edw.  T.Davis 

Jas.  Dickson 

J.N.Greer '..'.'..'..'.'.'. 

Anna  D.  Griffith. . .'. 

B.  M.  Gol(lb<'rg V.  ""''"". 

Jos.  S.  U arrison 

G.  L.  Harvey 

J.  Smith  Harris 

C.C.HaincH 

F.  LHerdic 

W;H-Hiniings v:^'::::^:::::::::/^ 

^  CHoyt 

R.C.Horr<fcCo 

W.  J.  Jackson  «fe  Co.,  agts '", 

W.  B.  Jones '.'.'.'.'.'.'... 

V.  L.  Krager '.'.'.'.'.'. .'.'.'. 

M.  Kennedy '..'.'.'.'.'.'..'.. 

Jacob  Kennedy 

H.G.Kcrn '".V".V^"".V.\V^/.V'"J'. 

Ada  C.Kinney 

JoiinM.Kvie '.*.."."!!!!!".!'.!!!!!".!!!!! 

J.  D.  Longaker '.'.'.'.'.'.'.'.'.'.'. 

P.  Lo  wry '. .!!!!!!!!!!!!!!!.." 

A.  A.Lciwry '.'.'.'.'.'.'.'.'. 

J.  C.  Lucas,  c«t 

M.  Elizabeth  Lucas ' 

Mrs.  J.  C.  Lucas .!!.!!!.].. 

Anthony  Lynch ..."....!!!]!!! 

J.  M.  Ma«'Afee 

Wm.  McCcuimll "".!.'."!'.!."."!!!'.!.'.'.".'."]].'."."." 

J.  S.  McKinley 

W.W.Matthews '.I!!.'!!!!.'".".*'.".!!".'.!!!.".".']!.'.!." 

E.C.Merriman '  '  ***:"" 

W.K.  Mitchell .".'*'.'.".'."!."".'.".".*.'.".' 

Morgan  Bros ...........'...'. 

J.  A.  Morrell 

w.H.Moon "^J"*-! "!!!!!!  !!!"!^J!!  !!!!!"!!"* 

M. A. Mumper 

E.U  Donndl !.".*!.'"".'.'.'.".'"'.".'!.'".'."' 

Petty  ov.  idrufts  reiwrted,  $2,7in.7'7',  deduct  $136.11' .."'.'" ".W 

n  w"i*^"" ^7.96 

C  U.  M(M>re 62. 15 


Good. 


$0.05 


4.00 


42.55 
8.70 


27.69 


4.50 


23. 25 


2.01 
23.49 


3,  204. 32 
40.  27 


30.  30 

152.05 

9.00 

LOO 

5.00 


38.80 

134.  61 

1.18 

1,  210.  08 

150.  00 

11.28 

3.30 

3.50 

1.80 

20.  00 

865. 29 

.23 

.05 

44.85 


L04 


2.84 

752.84 

.75 


20.46 
28.74 


86.00 


A 


Doubtful.  ;  Wortldess. 


$149. 99 

331. 00 

1,287.71 

34, 088.  52 

i56.78' 


1  hilada.  Harness  Stipply  Co.,  petty 

iXS.  Paul,  ptttv '.... 

Edw.  \V.  Pattoii 

P.  I.  Patton ■■ 

Nellie  C.  Parker,  petty 

Herman  Perls,  petty 

Penn.  Mat.  Elec.  Co.,  petty 

G.  R.  Preston,  jr. 


130. 11 


Isaac  S.  Pine,  petty 
W.  H.  Ran  &  Co.,  petty 


L75 


.29 


4,879.42  i 

181.00  i 

18.36  i '. 

4,900.66  '!...... i!..'.' 

1 

L467.33    

% 

if 


I 


254.89 

39.  32 

1,198.85 

7,  631.  33 

3,  772.  94 


499. 37 


6, 078.  75 
270.  53 


10,  359.  29 

11.  744.  94 
5,  SC'Q.  98 


2, 055.  82 


676. 14 


643.34 

58.50 

5:55. 35 


?5.  46 

2, 140.  26 

661.80 

6.  0(1 

47.07 


$2, 589. 66 
67.96 
62. 15 


985. 75 


2.00 
54.55 


'-•iu-_^ 


I 


.     i- 


'i 

I 


376 


INVESTIGATION   OF    NATIONAL    BANKS. 


Schedule  K. — Quarter  ending  June  30,  1891,  etc. — Coutiuued. 


Description  of  assets. 


Overdra/U — Continued. 


Good. 


Francis  Rankin,  pettv 

A.  1).  Ramborger,  petty .' 

A.  W.  Ran  kin,  petty 

Remington  Pyne,  petty 

J.S.Ruldle,pVtty , 

J.  O.  K.  Roberts,  petty 

Terence  P.  Smart,  treas.,  potty 

W.F.Shaw 

Jesse  W.  Starces,  jr.,  petty 

F.  H.  Sanford,  iH^ty 

Jas.  "W.  SayreH,  petty 

J.  H.  Shaw,  manager,  petty 

Santa  Clara  \V  iiie  Co.,  jK-tty 

D.  B.  Saxton,  petty 

J.  Steehnan,  agt.,  petty 

Geo.  W,  Shedwick,  petty 

Geo.  W.  Stewart,  treas.,  petty 

David  Stewart,  petty 

Jolm  Sinipsou,  petty 

H.  Oscar  Smith,  petty - 

Stiles  &  Fox,  petty. ! 

J.  R.  Shirley,  petty 

Wm.  Snowden,  petty 

Mrs.  C.  K.  Shoemaker,  petty 

H.  C.  Schomackt:r,  petty 

C.  M.  Southwell,  petty 

J.  W.  Schuldt,  petty 

Jacob  Stultz.  petty  - 

N.  W.  Talbot,  petty 

Mrs.  A.  If.  Trenholiii,  petty 

T.  J.  &  Co.,  Toddinytton.  ]M>tty 

Anna  K.  Thonip.soii.  petty 

Jos6  Torya,  petty \ 

C.  A.  Thompson,  petty 

E.  W.  Thonie i 

J.  M.  Vandever,  petty I . 

Jo86  Vivo ' . 

Vinelan«l 

H.  J).  Watts,  petty i. 

.lohn  A.  \Viillae«>,  petty {: 

M.  B.  VV  ami  maker 

John  Wanamaker,  per.soiml 

W.Walker 

R.H.Walker 

J.  R.  Wear  &  Co.,  petty 

Wm.  Webb,  petty 

Chas.  West.  i)etty 

Jos.  A.  Wilson,  iHJtty , 

F.  H.  Whiting,  petty 

C.  A.  Wood,  trustee,  petty 

Due  by  banks: 

Banks  of  Batavia,  Batavia,N.  T 

Nat.  Bank  of  Commerce,  Boston,  Mass 

Nat.  State  Bank  of  Camden,  N.  J 

Ist  Nat.  Bank  of  Media,  Pa 

Merchants  and  M'f 'rs'  Nat.  Bank,  Pittsburgh,  Pa 

Farmers'  Nat.  Bank,  W.  Chest«r,  Pa 

Items  from  Dep.,  ;J,  20 : 

City  treas.  ek.,  Drexel  &  Co 

City  tresis,  ck..  Keystone , 

Do 

Do 


$89  00 


Doubtful. 


10 


.08 


5.24 


15 


9.84 


4,  J)29.  98 
334. 36 


Do 
Do 
Do 
Do 
Do 


Ccuh  itema. 


2, 11,  '91,  pro.  ck.,  L.  Dolmas.  Chester 

3, 13,  '91,  ek.,  John  Hayes,  balance 

9, 13,  '90.  ek.,  R.  E.  Trust,  B.  M.  Broa<lbent,  balance 

2, 13,  '90,  pro.  ck.,  J.  II.  Lougstreet , 

5, 27, '90,  ck.,  John  W.  Barron 

9, 16,  '90,  pro.  ck.,  L.  Groff  &  Co.,  endorsed  C.  McGlade 

10,  29.  '90,  pro.  ck.,  H.  D.  Holt,  endorsed  F.  A.  Mitchell 

2. 11,  '91,  pro.  ck.,  W.  A.  Barritt,  endorsed  Penn  Granite  Co 

3. 12,  91,  ck.,  H.  Quinn,  endor.scd  T.  M.  Love 

3, 18, '91,  ck.,  W.  F.  Shaw 


13.42 


374.84 

478.68 

.27 

.40 

.35 

262. 50 

178.66 

10,  000. 00 

9.43 

14.00 

8:J.00 

2:5.46 

338.58 

3L50 


6.50 
150.00 


$3.68 


8.24 


2:^8.96 


Worthless. 


9.71 

28.38 


L95 


2.66 


2, 659.  71 
26.87 


891.24 


31.08 

87.54 

4.10 

4.94 


2, 467. 14 


64.00 
49.50 


18. 01 
49.19 


197.  00 

!j7.  26 

641. 13 


34L47 


152. 12 


252.06 

100.00 

1, 476.  56 

299.67 

461.  52 

20.00 

60.00 


$1.05 

24.83 

100. 77 


475. 71 


127. 15 


70.91 
841. 92 


1.00 

18.49 

.99 


LOO 


1, 863. 32 
10.00 


496.81 


46.82 


1.85 


4.12 


4.12 


INVESTIGATION   OF   NATIONAL   BANKS. 
Schedule  K.— Quarter  ending  June  30,  1891,  etc.— Continued* 


377 


Description  of  assets. 


Or  crdrci^te— Continued . 


3, 19, '91,  ck.,  Jos.  M.  Cooling 

12, 15, '90,  ck.,  Wm.  Calhoun 

12, 11 ,  '90,  ck.,  Wm.  Calhoun -  - 

11, 11,  '90,  note  J.  L.  Galloway,  end.  Wm.  Calhoun,  jr.,  W.  Calhoun. 

2, 1 ,  '90.  note  J.  McConnell,  cash,  $5,  attached 

U,  17,  '91,  ck.,  Wm.  Calhoun 


Good. 


Doubtful. 


Worthless. 


$261.63 

25.00 

190.00 


1,  3,  '91, 
9, 20,  '91, 
L13,'91, 
9, 13,  '90, 
3, 19,  '91, 
3, 13,  '91, 
3,  6,  '91, 
3, 13,  '91, 
3, 16,  '91, 
3, 19,  '91, 

12, 16,  '90,  note,  Howard  Patterson,  end.  G.  W.  Marsh 

2, 6,  '91,  receipt  for  postal  note 

Memo.  Ist  teller,  short 

3, 10,  '91,  pro.  ck.,  L.  Dolmas,  Chester  ($40  ca.sh  turned  over),  bal 
Exchange  for  clearing  house,  3, 20,  held  by  them 


ck. 

Geo.  L.  Harvt 

It            <« 

II            ti 

G.  W.  Marsh 
11 

it 

tt 

It 

It 

$190,95 


140. 00 
262.  25 
12.').  00 
2.'>0.  m 
14.',.  00 
200.  00 


4 


.97 
200.  00 
112.  02 

^  _  70,00.^.46 

Traction  bonds  held  Sy  clearing  house  . . .'. 100, 000. 00 

'2,250.00 
5,666.06 


$162. 00 

98.50 

7.68 

250.00 

45.00 

50.00 

700.00 


Sea  Girt  &  Spg.  Lake  stock, 
fu 


Redemption  fund 

Furniture  and  fixtures 

Excess  of  bonds  over  circulation. 


.^00,  000. 00 

io,  666. 66 


202,054.05  I  623,834.55 


9,166.11 


Schedule  L. — Quarter  ending  June  30,  1891.     Other  assets  acquired  since  suspension  in 
the  hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philada. 


Trd.  C.  Greipel,  additional  overdraft 
Overdrafts,  correction  of  foi-mer  statement 

Katioual  Bank  of  Commerce,  Boston,  Mass 155.21 

Camden,  N.J ,  ^'^12  ?^ 

Harrisburg,  Pa r  I  ^*  15 

Media,  Pa „  „„ /rJ 

Chicago.  Ills ^'??^?^ 

Wa.shin<,'ton,  D.  C 116.10 

Manhattan  Life  Insurance,  J.  Bardsley :  487.00 


4,977.20 


41 


$10, 810. 62 


10, 810. 62 


Schedule  O.—Qtiarter  ending  June  30,  1891.    Loans  paid  and  other  disbursements  by 
the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Fa. 

On  Mar.  19,  M.  J.  Miller  presented  check  for  $475.75  in  payment  of  a  note  for  like  amount 
due  Apl.  18.  The  note  was  held  by  the  clearing  house  as  collateral.  The  check  was  re- 
ceived too  bite  in  the  dav  to  get  the  note  from  the  C.  H.,  but  the  check  was  charged  to  Mr. 
Miller's  account,  and  bills  discontinued  cretlited  with  that  amount  (on  Mch.  19.)  In  a.  m. 
Mch.  20,  bef«)re  the  bank  was  able  to  get  the  note  from  the  C.  H.  for  delivery  to  Mr.  Mil- 
ler, the  bank  was  taken  charge  of  by  Mr.  W.  P.  Drew,  Nat.  Bk.  Ex.  Previous  to  Apl.  18 
(when  not*  was  due),  Mr.  Miller  was  notified  by  the  C.  H.  to  call  and  pay.  Mr.  Miller  was 
very  mueh  distressed  over  the  matter,  not  having  the  funds  at  his  command  to  pay  the 
note  a  second  time.  In  charging  the  check  .$475  75  to  his  account  on  Mch.  19,  the  account 
was  overdrawn  to  the  amount  $70.85.  Mr.  Drew,  upon  Mr.  Miller  paying  $70.85  in  cash, 
the  amount  of  the  overdraft,  took  $475.75  from  the  cash  on  hand  and  paid  the  clearing  house 
and  the  note  was  surrendered  to  Mr.  Miller.  (The  check  of  3,  19,  distinctly  stated  that  it 
was  to  pay  note  due  4, 18) yi"i:"\ ;"*,'      $^75^  75 

Not<}  of  Richard  Aliller  (no  connection,  as  far  as  known,  with  the  above)  for  $1,000,  due  Apl. 
28,  was  held  by  the  C.  H.  as  collateral;  note  not  being  paid  when  due  was  protested;  Mr. 
R.  Miller  has  a  balance  of  $2,241.43  to  his  cr.  on  individual  letlger.  The  C.  H.  notified  Mr. 
R.  Miller  on that  the  note  must  be  paid  at  once.  Mr,  Miller's  check  for  $1,000  was  ac- 
cepted by  Mr.  Drew  and  $1,000  taken  from  cash  on  hand  and  paid  to  C.  H.,  the  not*  being 
surrendered  to  Mr.  R.  Miller 1.  ^^-  00 

Judgment  for  $6,500  was  obtained  against  Laura  R.  Colwell  and  Charles  R.  Colwell  prior  to 
the  appointment  of  Receiver  Yardlev.  They  confessed  judgment  for  the  sum  named,  which 
was  .$209.40  more  than  their  indebtedness  to  the  bank  on  two  notes  of  $3,000  each.  The  dif- 
ference  was  paid  out  of  funds  in  hand  by  Mr.  Drew,  who  was  then  in  charge 209. 4(t 

1,685.51 


t  l-'l 


f 


4 

I: 


i 


378  INVESTIGATION   OF   NATIONAL   BANKS. 

ScnEDULE  V,-Quariermdinf,  June  SO  1891.     Legal  expense,  paid  by  the  receiver  of 

the  Keystone  National  Bank,  of  rhUadelphia,  Pa. 

June  11.  To.^«jJ^]JjS;^c^^^^^^    court,  filing  bill  in  «,quity,  Yanlley,  receiver,  vs.  Magiil,  a8- 

12.  ptr.S.inarWl,  Ws'lorVervit'cHofw^^^^^^ ^r^ 

w^ffid^^h^^R"  •  PnCTr  °^J^i"^^  and  entering  judgu.ent  vs'."  Laura  ilVCoV- 

111.  25 

Schedule  'R.^Quarter ^diny  June  30,1891.     All  othr  expenses  paid  by  the  reeeirer 
of  the  Keystone  National  Hank,  of  J'hiladrpliia,  Pa. 

-Kf       o,    T  1-  ^J^  ^^ all  claims  against  said  bank  to  date- 
Mar.  31.  John  Hayes,  caahier ♦on-»  ni 

Hjirry  C.  Jones,  general  b<.okkeei)er-...^*.'ii!i! 7?J!X!I 

John  G.  Divine,  discount  derk •....                                   i,f*XX 

Samuel  l.Hayes,receiving  teller.. .::::::::::: Jf„^  SS 

A.  J.  Gorden,ind.ledgor  bookkeeper \Z:i^ 

S^^°?:^.'?'^®?*^?''"''-^*^'Kt*i'>ookkeeper 'S'^"^^^. {So  no 

Cha«.R.  Edge,  ind.  ledger  bookkeeper ^11 

Wm.H.Merker,  clerk     .                             V^.^ 

John  J.  Ahem,  ni^ht  watchman. ..".!.*."'!.*.'.'! f-^ 

Jas.  L.  Doman,  night  watchman ^"-  ' , 

J.  M.  Baudot,  runner ou.  ou 

Walter  Daniels,  messengt-r * ! ;??•  ^ 

M.J.  Braden,  runner r. '" 

Mr8.H.Tobias,h«iy  attendant.. .:;:::::::::: ;i'!!!! 

John  Gouldy,  jr.,  outside  walebmau ::: -i-'"" 

Ueo. North, ass, receiving  teller J:^. 

*    ,       „  H.L.Carncio8s,  ass.  pay  teller ?•';;; 

Apl.      3.  L.  Bums,  tvpe  writer. ......                             '»"•<'<» 

30.  H.O.Jone.s",  general  b<.okkeepe'r J""" 

John  G.  Divine,  discount  clerk           I"".''^' 

Apl.    30.  Chafl.K.Ege,  bookkeeper,  serviieVtV.  date -'"^^ 

Wm.P.Merker,clcrk,se;vicestodate        ^'^k'Z 

John  J.  Ahem,  night  watchman,  services  to  date                '. ?m  /»! 

TtTo         ,  Jf- 1'- I^ornan,  night  watchman,  services  to  date ■.■.*.".■.■.■.;;■. ^-  L", 

May      4.  Miss  Bums,  typewriter,  8ervi<-cs  to  A  pril :{(.                                   .^'  !c! 

A          o?-  i°'?  il^"i^^'  J''-'  o«*«"^e  watci.man,  Hcrvices  toM  ay  i ! ! . ". r  *  2 

Apr.    25.  M.J.  Braden,  runner,  in  full  of  all  claims  to  date... _.: "J 

May    15.  Miss  Hums,  typewriter,  in  full  of  all  claims  U^  M;.  v  ii            ' ; ;  j^'-  JJJ 

...  2,  000.  00 

...  2,000.00 

Apr.     8.  C.  J. Stoddard, expenses  from  WaVhh^itonimdiMimp^^^^^^^^^^  iJ^^lUJ 
'^cte.r?^''^  represents  the  amount  paid  by  W.P.  Drew,  iiat  bank  examiner  in 

May   21.   Carriage  hire,  removing  8ilv;;"and  other  coin  from  bank  bniidv ^'  ''^^?'  I"} 

oo    vlr''^®^^";  *^<*™  ^**"'P^  '■•^"^■^*  "*■  tl«e  Currency * '\f. 

22.    Win.  F.  Murphy's  S<ms,  stationery..                                      .vS^ 

Chas.Kaufl'man,  new  lock  on  desk  broken  open. .".*."."'." or!! 

F.  Cornish,  stamp  and  pad ^                   2.50 

25.  J.A.Wilboin,i)rinling 2.25 

26.  Letter  tiles  and  sundry  items .".".*.*.'.' .'.'.'.■■ " 'J"^ 

Chas.  Katfuman,  opening  desk ....      ^f*^ 

Wm.S.  Wats(m,  printing ./j^ 

27.  Wm.RMurplu  sSons.rabberbands***.!!".!*"."! ^JJJ 

J.  A.  Wilborn,  printing £..m 

^-  M Vm "'^•"' ^^'^'^^^^^ pack/n?pap;;;;;\i::for-removar:::::::::::::::: ^S^j 

29.   M.  TV.  Megargee,se -vices  as  clerk onr^ 

lelegram  to  the  Comptroller  of  the  Currency  «^ 

June    2.  J.  A.  Wilbom, printing v^urrency gg 

John  Ahem,  sen  ices  as  watchman  for  May]  $5'oV  oii'e  night  eWtVa  $2* ^''^^ 

Jas. L.  Doman,  services  as  wat.-bmnn  for  ^fay.$.-»0;  one'^/ild.t  S?a,'$2"': %'Z 

3.  Solomon  Watson,  drayman,  removing  bank  pn.pt'^tv  to  P.  ().buildV  ItSS 

u!^.Cot"wit'h  toX'.!".^"''''"  '""'  ^•-""^^•"-  'n  attendingfcaringbefo-r^-  ""•'' 

Chas.  Lynch,  sen  ices  as  watchman  "at  bank  "buildi'iig".  \\ '^\'^, 

T.„^    Q    //"t^i^arr,  services  packing  l>«)xes  and  pai)ers  at  bank  buildin.'r ofS 

4*  F;«^V^7?i;"*^'  t  ^^•'  */'^^\J«.«o"P.  and  brushes  for  use  receiver's  office i!:::::: ?'?S 

4.  Frank  Darragh.  service.«»  in  moving  bank  property t  lux 

5.  :Farrell  &  Co. ,  tirepnn.f  safe  for  use  recei ver  s  otiice  ...::;:: : 3  ^ 

Kobt.  M    \ardley,  receiver,  expf^nses  to  Wash'n,  D.  C .■.'";'. q?X 

8.  Annie  (.ollins,  services  as  room  cleaner  at  bank  to  June  2d, '«»!  (JO  da  ) k   vx 

Sarali  L.K,k hart,  services  as  room  cleaner  at  bank  to  J  iine  2d,  01  ( lo  da' ) «  •« 

6.  Uias.Lynch,janitor  atbanktoJune2d,'9)  (lOda.) ' ««  »m 

John  CBiirr,  engineer  at  bank  to  June  2d. '91  (10  da.)...'.'. ?Li 

HarrvI.aiT.ehvatorboy  at  bank  to  June  2d. '91  (10  da.)            «  !!l^ 

rn'"'  V/ \V""''^  *"''■'"''•'■  •'">'  a<  '^a""^  <«>  June  2d,  !)!  (1()  da.) «  ^^o 

Chas.  Jihge,  bookkeeper,  one  mouth  at  bank  to  June  Isi.  ISoY .":::.": loooo 

&  Hairy  C.Jones,  bookkeeper,  one  month  at  bank  to  June  1st,  1891....  \^1^ 


INVESTIGATION    OF   N.\TIONAL    BANKS. 


379 


SCHEPIILE  R. — Quarter  ending  June  SO,  1891,  etc. — Coutiimed. 

June    8.  Wm.  S.  Merker,  clerk,  one  mouth  at  bank  t-o  June  ] st,  1 891 $$45. 00 

10.  John  G.  Divine,  discount  clerk,  at  bank  to  June  1st,  1891 125.00 

11.  Wm.C.  Ryan,  sundry  items 2:{.  14 

12.  Geo.  Spencer  Co.,  oflice  desk  for  receiver 35. 00 

P.  &  r.  Devlin,  boxes  for  packing  papers  for  removal 4.60 

6.  John  Gouldy,  jr.,  outside  watchman  for  May 5.00 

Richard  AVells,  services  as  laborer  at  bank  and  receiver's  office 15. 00 

16.  Saml.  McMidiael,  services  in  removing  bank  property 5. 00 

22.  F.  Cornish,  rubber  stamps  for  use  at  receiver's  otiice 4. 75 

June  23.  Wm.Maun  Co  ,  paper  fastenings  for  use  receivers  olKce .J^5 

Levick  rubber  bands "^-^^^ 

30.  John  G.  Divine,  clerk,  services  for  June 125. 00 

Chas.R.  Ege,  clerk  services  for  J une 100. 00 

Robt. M.  xardley,  receiver,  expenses  to  Waslrn,  June  2«(li  and  I'Tth 9.75 

Robt. M.  Yardley,  receiver,  carriage  hire  Ma^  29th,  custodian's  rcsideiue 1. 50 

Wm.C. Ryan,  sundry  items  paid 9.11 

Miss  Burns,  stenographer  and  typewriter,  services  from  May  15  to  June  30 51.  73 

John  Yardley,  accountant,  services 2<K).  00 

Wm.  C.  Ryan,  clerks,  ervices  from  May  20  to  June  ;{0 169.  'Xi 

Wm.  B.  Thompson,  clerk  services  from  June  1  to  June  ;{0 125. 00 

H.  r.  Brunner,  coal  for  May 63.  00 

Fees  paid  R.  Estate  Co 7.34 

Losses  on  mutilated  coin 9. 41 

Counterfeit  notes,  2  $10 20. 00 

Exchange 4.33 

8, 058. 28 


<il 


r 


Schedule  S. — Quarter  ending  June  SO,  1891.     Claims  in  dispute  against  the  Keystone 

National  Bank,  of  Philad'a,  Pa. 

No.  3.  Geo.  W.  Brown,  $90,  proceeds  of  pension  warrant  claimed  in  full $1 28. 71 

6.  K.  L.  McMenomy,  endorser  on  protested  note  for  $450,  claims  oli'set 350. 65 

10.  Eugene  Uflbrd - ••  70. 51 

20,  Wm.  R,  Wamer  &  Co.  claims  $2.25,  telegrams  recalling  c'ks,  $2.00  pro.  fees 4. 31 

24.  C.  P.  Libby,  .ir 500.00 

30.  Jas.  D.  Laws  «fe  Son  claim  repayment  in  full,  dep.  3-20  a  few  minutes  before  bank 

closed 200. 00 

32.  T.J.  Cunn  &  Co.  claim  $418  of  dep.  as  offset  against  liability  as  endorsers  of  pro- 
notes.  .......... — .............  418. 00 

149.  Wm.  A.  Powell  claims  $76  in  full,  dep.  3, 19,  '91,  about  2 :40  p.  m 76. 00 

Edw.  W.  Magiil,  assignee  for  the  benefit  of  creditors  of  John  Bardsley,  14  due  bills .  925, 000. 00 

926,748.  18 


Schedule  U. — Quarter  ending  June  SOth,  1891.    Liabilities  canceled  by  offxet  and  other- 
wise by  the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia. 


F.  A.  Davis,  money  order  ch'g'd 

F.  A.  Davis,  money  order,  Wytheville  . . 
J. F. Portuoudo,  check  rt'n'd,  Chicago. 

^./Vr     •   •   ■■>••■•••>•••«••■■•••*■•■•••> 

Due  Osborne  &  Co.,  check  r't'u'd,  Chi- 
cago  

Due  Osborne  &,  Co.,  cheek  r't'n'd,  Wil- 
mington   

Do!l!!!l!!!!!*!!"!*!""!""i"!! 

Due  Osborne  &  Co.,  check  r't'n'd,  Chi 

cago 

Do 

Due  Osborne  &  Co.,  check  r't'n'd,  Cam- 
den  

J.M.  Walsh  &  Co.,  check  r't'nd.  Rich- 

Do 

Do 

J.  M.  Walsh  &- Co.,  che«"k  r't'n'd,  Chicago 

Do 
K.  L.  McMenany,  check  r't'n'd,  Camden. 
S.  F.  Wliitman  &   Son,  check  ret'n'd, 
Pittsburg 

Healy  dcLeyefer,  check  ret'n'd, Media.. 
McLear  &  Kendal,  check  ret'n'd,  W. 

W.  Kiddle,  check  ret'n'd,  Camden 

Xace  Sl  Smantley,  check  ret'n'd,  Cam- 
den  

Do 

Nat'l  B'k  of  Commerce.  Boston,  d'ft  re- 
t'n'd      2,002.02 

J.  J.  Py le,  d'ft  returned,  Boston 403. 10 


$15. 00 
15.00 
600.  88 
886. 28 
518. 58 
163. 10 

11. 50 
28.50 

43.58 
62.27 
66.29 

15.90 
57.65 

19.58 

25.40 
18.32 
7.80 
34.44 
27.  58 
201. 12 

47.35 

52. 25 

500.00 

402.15 
51.36 

n.36 
55.47 

500.00 

240. 00 

22] . 40 

11.35 

10.44 

240.00 

4,000.00 

32.06 

20.00 

169.50 

L89 


Crane,  Paris  &  Co..  Wa.shg'l.,  d'ft  ret'n'd, 
N.  Y : $501.29 

Wanamaker  «fe  Brown,  d'f.  ret'n'd,  N.  Y.    4, 959. 64 

J.  Campbell,  ch'k  ret'n'd.  Real  Estate 
Trust 

Central  Trust,  ch'k  ret'n'd.  Central  Trust 
Do 

Robt.  Steal,  ch'k  ret'n'd,  Dres.  &  Co.  ... 

J.  R.  Clausen  Son,  ch'k  ret'n'd,  De  HaA'en 
&  Towsend 

R.  Young,  ch'k  ret'n'd,  Guarantee  Co. . . 

CityTreasurer,  ch'k  ret'n'd,  2  Xat'l  B'k. 

G.  W.  Clothier,  ch'k  ret'n'd,    German- 
town  

John  Young,  ch'k  ret'n'd.  Aad.  M.  Cles. 

Alpha  S.  De  Lissa,  note  No.  291 

W.  S.  Emerson,  note  No.  294 

Jno.  O.  Bowman,  note  No.  302 1, 300. 00 

F.A.Davis,  note  No.  304 2,000.00 

Visento  Portuondo,  No.  310 1,418.03 

F.A.Davis,  note  No.  327 300.00 

Ferd.W.Nafer,noteNo.331 200.00 

J.J.McGin,noteNo.332 200.00 

W.  S.  Emerson,  treas.  Herder  Cutlery 
Co.,  note  No.  333 40. 67 

Sallie  M.  Baker,  note  No.  83 1 1 .  32 

E.  C.  Riclimond  Co.,limited,  note  No.  275    2,  44.''>.  78 

Pro.  check,  J.  J.  Douglas,  W.  H.  Smith . . 

Check,  E.  M.  Cooper 

Pro.  check,  D.  Y.  Nichols,  Wm.  Cal- 
houn  

Pro,  check,  J.  Re^Tiolds,  jr.,  J.  Kemble  . . 

Check,  J.  A.  Keely  &  Co 

Check,  W.J.  Baker 

Check,  Jacob  Myers 

Memo.,  city  treasurer,  J.  W.  Catharine, 

jr 2,319.18 

Do 


*  V! 


m 


5. 611 

■  '■ 

'      1 

50.00 

l^fl 

75.00 

i   |« 

156.00 

I  v|| 

179. 87 

1 

>|| 

43.08 

H 

239. 12 

* 

11 

* 

ii 

^i 

M 

319. 18 

K^  11 

285.00 

Z 

F 

u' 

w 


,  I 


r 


'^, 


380  INVESTIGATION   OF   NATIONAL   BANKS. 

Schedule  V.— Quarter  ending  June  SOtli,  1S9I,  e/r.— Contiuued. 


City  treasurer,  J.  W.  Catharine,  jr $600. 00 


Do 


35. 11 


I>o 2,200.00 


Do 


75.07 


J.  D.  Laws  &  Son,  Drexel  &  Co.,  offset 

on  deposit  made  3, 20 92.  50 

F.  A.  Davis,  note  Xo.  183 1,000.00 

J.  F.  Portuondo,  not«  No.  190 5. 000. 00 

H.  Van  Beil  &  Co.  note  No.  2:{0 500.  00 


F.  A.  Davis,  treas.,  note  No.  190 $1, 

J.  F.Portuond(»,  int.  andfee.s,  note  No.l90 

Paine,  Diehl  Sc  Co 

Arthur  J.  Smith 

W.E.Hnich "*" 

H.W.Oray .'.." 

Lancaster  Balance 


300.00 
6.21 
28.00 
3L'4.  72 
125.  00 
6.37.10 
421.81 


40. 805.  64 


SCHEDULK  W.— Quarter  ending  June  SO,  1891.     Claims  eatablishcd  not  on  the  bookn  of 

the  Keystone  National  Hank,  of  I'liilada.,  Pa. 


$(H).  00 


1891. 
Jane  8.  Louis  Dreka 

8.  Henrv  F.  Kelly .......;        *7i'"u 

8.  The  \Vni.  F.  Murphy's  Sons ."."   ' i„7io 

8.  The  Harrison  Safety  Boiler  Co 7  50 


258.24 


Exhibit  18. 


Report  of  the  condition  of  the  Keystone  Natimial  Bank  of  Phila.,  Pa.,  in  the  hands  of 
receiver,  for  ihe  quarter  ending  September  30th,  1891. 


ASSETS. 


Total. 

Good. 

Doubtful. 

Worthless. 

Assets  at  date  of  suspension,  viz : 

Bills  receivable  (schedule  wit  h  first  n'])ort) . 
Other  assets  (schedule  with  first  report)... 
Excess  of  bonds  over  circulation 

'    $811,602.51 

909.  848.  90 

5,000.00 

$294.  380.  45 

276,  225. 57 

5,000.00 

$372,  G.')  1.29 
624,341.19 

$144,030.' 7 
9,  282. 14 

Total  as.sets  at  date  of  susjM'nsion 

Additional  as.set.s  coming  into  poH.><ession 
of  receiver  since  suspension  (Schedule  A). 

1 

!  1,726,511.41 
i       558.  608.  85 

575,  (500. 02 

47,848.23 

1.043.62 

996. 992. 48 
510,  850. 62 

l.')3,912.81 

Premium,  interest,  rent,  etc.,  received  since 
suspension  (Srhedule  B) 1, 043. 62 

■ 

... 

Total  assets  at  this  date 

2, 286, 253. 88 

624. 497. 87 

1.507.843.10       153.912.91 

DISPOSITION  OP  ASSETS. 

Amount  collected  by  receivcT  to  date: 

From  bills  recei\'able  (Schedule  C) 

From  other  asset-s  on  hand  at  date  of  sus- 
pension (Schedule  D) 

66, 438. 17 

69, 570. 01 

91,127.24 

470. 81 

53,  555.  48 
69^334.50 
37, 779. 28 

470. 81 

11,782.69 

235.51 

53, 347. 96 

'        1, 100.  00 

From  other  assets  acquired  since  suspen- 
sion (Schedule  E) 

From  premium,  interest,  rents,  etc.  (Sched- 
ule F) 

Total  amount  collected  by  receiver 

Offsets  allowed  and  settleil'on  bills  receiv- 
able (Schedule  G) i 

227, 606. 73 

20. 063. 42 
34, 388. 75 

161, 140. 07 

20,  06.3. 42 
34, 157. 15 

65,306.16 

1, 100.  (JO 

On  other  assets  (Schedule  G) i 

231.60 

Losses  on  promissory  notes  and  other  as-  I 

0ets  compounded  or  .sold  by  order  of  court: ' 

On  bills  receivable  (Schedule  H) ^ 

On  other  assets  (Schedule  H) 

888.76 

725, 160. 92 

817,  652. 98 

457, 680. 32 

2.  812. 50 

582.  42 
220,  761.  55  ' 
184,803.10 

177.66 
2, 812.  .50  i 

190.31 
360, 805. 60 
623, 683. 77 
457, 502.  56 

116.  03 

143,  5.30. 77 

9, 166. 11 

Assets  on  hand  at  date  of  this  report: 

Bills  receivable  (Schedule  J) 

Other    assets    at  date  of  suspension 
(Schedule  K) 

Other  as.sets  acquired  since  suspension 
(Schedule  L) 

Amount   collected   by  Comi>t  roller   from 
premium,  Interest,  etc.  (S«hedule  M) 

1 

Total 

2,  286,  253.  88 

^*>l     Ai\n    QfJ     \     1      tLl\n     OiO     t/h 

OJ4,  4U/.  0/ 

1,  UU«,  O-tO.  l\3 

153,912.91 

INVESTIGATION   OF   NATIONAL   BANKS. 


381 


Report  of  the  conditum  of  the  Keystone  National  Bank  of  Phila.,  Pa.,  etc. — Continued. 


ASSETS— Continued, 


? 


coujEcmoire. 

Amount  collected  by  receiver: 

From  good  assets $161,140.07 

From  doubtfvd  assets 65, 366. 16 

From  worthless  assets 1, 100. 00 

From  suspense  ac 4, 517. 88 

From  assessment  of  100  i)er  cent 
on     stockholders,      $53,347.96 
(Schedule  N).    See  E. 
Difference  between  cash  and  col- 
lections    15. 44 

Amount    collected    by    Comp- 
troller   2,812.50 


Total  collections 


234,952.15 


DisposrrioN  of  <x)llbctions. 

Am't  of  cash  returned  to  deposi- 
tors          $1,114.82 

Loans  paid,  and  other  disburse- 
ments (Schedule  O) 2,243.16 

Dividends    paid   by    Comptroller's 

checks 

Legal  expenses   paid  (Schedule  O)  616.96 

Receiver's  salary  paid  to  date 1, 420.  (X) 

All  other  expenses  (Schedule  R) . . . .  10, 171. 89 

Balance  in  hands  of  Comptroller 218, 745. 21 

Balance  in  hands  of  receiver  as  per 
statement  of  receipts  and  dis- 
bursements    640. 11 


Disbursements  and  balances. . 


234, 952. 15 


LLA.BILITIES. 


At  date  of  suspension : 

Collections  since  3, 20,  '91 $12, 544.  75 

Individual     deposit     (schedule 

with  first  report) 1, 300, 513. 07 

Deposits  made  3, 20,  '91 29,  559. 46 

Corrections  in  acs.  since  3, 20,  '91  19,  026. 21 
Certificates  of  deposit  (schedule 

with  first  report) 7, 971. 91 

Due  to  national  banks  (schedule 

with  first  report) 10,  573. 47 

Claims  in  dispute 926,748.18 

Due  to  other  banks  and  bankers 

(schedulewith  first  report)...  3,170.02 

Due  clearing  house 334, 286. 60 

Dividends  unpaid 6, 120. 00 

Due  bills  outstanding 43, 701 .  51 

Total 2,694,215.18 


At  dat«  of  report : 

Claims    proved,    for    liabilities, 

shown  by  the  books $480. 110. 29 

Claim.s  in  dispute  (Schedule  S) . .        926,  748. 18 
Liabilities  not  proved,  as  shown 

by  the  books  (Schedule  T) . . . .     1, 231, 260. 12 
Liabilities  canceled  by  offset  and 

otherwise  (Schedule  U) 56, 096. 59 

Contingent  liabilities  discharged 

(Schedule  V) 


Total  as  per  contra 2, 694, 215. 18 


Robert  M.  Yardley,  Receiver . 

(Indorsed:)  Keystone  National  Bank  of  Philadelphia,  Pa.     Receiver's  quarterly 
report.     Sept.  30,  1891.     Robert  M.  Yardley,  receiver. 

Statement  of  receipts  and  disbttrsnnents  by  Ihe  receiver  of  the  Keystone  National  Bank  of 
Philadelphia,  Pa.,  during  the  quarter  ending  September  30,  1891. 


Receipts. 

Amount. 

DJs1>nr8e)i»*»its. 

Amount. 

From  bills  receivable,  as  shown  by 
Schedule  C 

$18, 792.  75 

4,210.60 

58,300.78 

400.00 

Loans  paid  and  other  disbursements, 
as  shown  by  Schedule  0 

$558. 01 

From  other  assets,  as  shown  by  Sched- 
ule D  

Legal  expenses  paid,  as  shown  by 
Schedule  P 

505.71 

From  other  assets,  as  shown  by  Sched- 
ule E  

Iteceiver's  salary  paid  to  date 

All  other   expenses,   as  shown    by 

Schedule  R 

Remittiauces  to  Comptroller 

Total  disbursements  during  the 
ouarter 

900.00 

1  rom  premiun.  interest,  etc.,  as  shown 
by  Schedule  F 

2, 113. 61 
82, 980.  33 

From   shareholders,    as    shown     by 
Schedule  N  (included  in  Sched.  E.) 

Total  receipts  during  the  quar- 
ter ...                    

81.  704. 23 
5,993.54 

87, 057. 66 

Balance  on  hand  at  date  of  last  report. 

Balance  m  hands  of  receiver 

640. 11 

Total  accounted  for. ........... 

Total  to  be  accounted  for  ....... 

87,697.77 

87, 697. 77 

r 


m 


\ 


382 


INVESTIGATION   OF   NATIONAL   BANKS. 


Schedule  A. — Quarter  ending  September  30,  1891.  Additional  assets  coming  into  pos- 
session of  the  receiver  since  suspension  of  the  Keystone  National  Bank  of  Philadel- 
phia, Fa. 


Description  of  assets. 


Amount  at  date  of  last  report 

Check  Jas.  A.  Keating,  3, 21.  '90,  Wilkesbarro. 

l^atioual  State  Bank,  Camden 

Ft.  Dearborn  National  Bank,  Cliicago 


$47, 694. 95 


139. 30 
13.98 


47,848.23 


Donbtfol. 


$10, 810. 62 
40.00 


10, 850. 62 


Schedule  B. — Quarter  ending  September  SOth,  1801.  rremium,  interest,  rent,  etc., 
received  by  the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa.,  since 
suspensioti. 


Date. 


1891. 

July    3 

3 

7 

7 

7 

15 

15 

15 

18 

20 

20 

22 

24 

Aug.  13 

13 

Sept.  10 

July    3 

3 

7 

7 

7 

8 

10 

14 

15 

16 

15 

15 

16 

18 

24 

Aug.  12 

13 

13 

20 

Sept.    1 

10 

23 

Aug.  12 

12 
12 
12 
12 
12 
12 
13 
14 
14 
14 
14 
25 
13 
13 
Sep.   10 

2 
2 
2 
2 
1 


From  what  source  collected. 


Amount  at  date  of  last  report 

Protest  fees  on  No.  07,  K.  S.  Cowan,  due  4, 29 

32,  H.  Filling  &  Son.s.  due  1,2 

68,  J.  H.  Reigel,  duo  ;{,  liO 

7ff,  W.  N.  Stuart,  due  :$,  UO 

103,  B.  H.  Davis,  due  5, 5 

Ill,  C.  Reamist,  due  5, 14 

72,  Mich'l.  Mea <rlier,  due,  3, 24 

217,  Cox  &.  S<mH.  due  6, 17 

88,  Excelsior  Hosiery  Co,  due  4, 18.. 

170,  W.  R.  M  urphy,  due  5, 27 

172,  Jno.  Craig  &  Son,  due  5, 27 

314,  Ivan  MuUer.due  4,21 

18!»,  Edgar  N.  i  each,  due  6, 6 

89.  Wm.  Auld,  duo  4,  8 

73,  Jacob  Hautman,  due  3.  25 

117.  Aman  &  Bros.,  due  5, 19 

Interest  on  No.    97,  R.  S.  Coleman,  due  4, 29 

32,  ll.Filley  &  Son,  due  1,2 

68,J.H.Reigle,due3,20 

76,  "W.  X.  Stuart,  due  3,  30 

103,  B.  H.  Davis,  due  5,  5 

Edward  T,  Davis,  overdraft 

51,  W.  B.  Hutehinson  et  al.,  duo  2,  17. 

269.  Jas.  M.  Battersby,  demand 

HI,  C.  Beamish,  due  2,  14. 


8,  26,  '90. 

3,  24,  '91. 

6,  17 

fi,  17 

4,  18 

6,  16 

5,23 

4,8 

3,25 

1,5 

1,  10 

5,  19 

demand  . 


137,  J.  Nolen, 

72,  M.  Meajjher,  ' 
217,  Cox  &  Sons,  " 
219,  A.  G.  Kelh.gg, 

88,  Excelsior  Hosiery  Co.,    ' 
189,  Edgar  N.  Black, 
164,  R.  Reach,  " 

89,  Wm.  Auld,  " 

73,  Jacob  Haupman,  *' 
35,  W.  H.  Brown,  " 
37,  D.  L.  Drew,                       •• 

117,  Amen  &  Bros.,  •' 

268,  D.  L.  Drew,  " 

Interest  on  stock  assessment,  Mary  A.  Davis. 

Geor;;(!  Brown 

R.M.  Holbrook 

Jno.  A.  S.  Diamer 

Jas.  W.  Howard 

Henry  Johnson 

W.  A.  Bender 

B.Guble 

Robt.  Arthur 

Daniel  Buck 

Jas.  S.  Perat 

W.J.  Barr 

Thos,  Massey , 

Geo.  R.  M  (davey 

Costa  on  No.  89,  Wm.  A uld,  due  4. 8 

No.  73,  Jacob  Haupman.  due  3,25 ' 

No.  117,  Aman  &  Bros.,  5, 10 , 

Interest  on  stock  assessment : 

C.C.Newton 

Susan  Y.  Hibbard , 

Jennie  Chambers , 

Intere.<»t  on  U.S.  bonds.  $50, 000,  to  June  T,' '91,  hefd'by  Treasurer  H.'s!,  to  secure 
circulation .tit 


Amount. 


$76.92 

2. 05 

2.05 

2.05 

2.05 

1.54 

2. 05 

2.05 

2.05 

2.05 

'J.  05 

2. 05 

2.05 

2. 12 

2.05 

2.05 

2.05 

.68 

15.16 

L81 

2.51 

2.10 

65. 43 

42. 90 

94.97 

1.00 

4.41 

11.09 

2. 25 

1.80 

14.76 

.80 

6.  .'{0 

1.64 

2.  13 

18.  83 

9.75 

11.55 

9.50 

.17 

.17 

.10 

.12 

.41 

2.08 

.20 

.20 

.16 

.33 

.15 

.12 

.38 

.18 

6.40 

6.40 

6.40 

1.75 

4.50 

3.00 

17.50 

562.50 


1,043.62 


INVESTIGATION  OP   NATIONAL  BANKS. 


383 


Schedule  C. — Quarter  ending  September  SO,  1891.     Collections  by  the  receiver  of  the 
Keystone  National  Bank,  of  Philadelphia,  Pa.,  from  bills  receivable. 


Date. 


1891. 

July    3 

3 

3 

« 

7 

7 

8 

8 

8 

9 

10 

11 

14 

14 

15 

15 

15 

Ifi 

15 

15 

16 

17 

18 

18 

20 

20 

20 

24 

27 

29 

Aug.    3 

8 
10 
12 
13 
13 
13 
13 
18 
20 
Sept.    1 

8 
10 
10 
22 
23 
25 
25 
25 


No. 


97 

233 

32 

80 

103 

238 

239 

259 

232 

240 

51 

80 

88 

269 

111 

262 

150 

137 

72 

217 

219 

249 

252 

88 

80 

2C6 

197 

189 

80 

207 

205 

80 

239 

80 

164 

89 

207 

1G7 

73 

80 

35 

37 

239 

117 

98 

90 

268 

167 

110 

87 


Maker  of  note. 


When  due. 


Amount  at  date  of  last  report 

Rich'd  S.  CoUum 

Harry  H.  Long 

Harvey  Filling  &  Sons 

Preston  Price 

B.H.Davis 

Fletcher  Pearson 

Bennett  &  Kisler 

C.  Buck  waiter , 

Geo.  W.Smith  &  Co 

Wm.  Rhodes 

W.  B.  Hutcliiuson  ctal , 

Preston  Price 


Excelsior  Hosiery  Co. 

Jas.  M.  BatJiesby 

C. Beamish 

Hughes  &  Bro 

Thomas  Brown 

John  Noleer 

Michael  Meagher 

Cox  &  Sons 

A.G.Kellogg 

McBride  Bros 

Thos.  Chad  wick 

Excelsior  Hosiery  Co. 

Preston  Price 

M.  Laudauer 

J.  S.McMurtrie 

Edgar  N.  Black 

Preston  Price ..... 

W.  Y.  Warner 

H.  W.  Kelsey 

Preston  Price 

1  '.onnet  &  Eisler 

1  'reston  I'l-ice 

R.  Reach 

Wm.Auld 

W.Y.Warner 

M.B.D  wight 

Jacob  Hart  man 

Preston  Piice 

W.H.Brown 

D.L.Drew 

Bonnet  &  Eisler 

Aman  &  Bro 

M.  MeNultv 

J.W.Baker 

D.  L.Drevv 

M.B.I)  wight 

W.D.Troup 

Chas.  S.  Salin 


1891 


April 

July 

Jan'y 

Ap'l 

.May 

July 

May 
July 

Feb. 
Apr. 


29 

5 

2 

3 

5 

8 

8 

18 

3 

9 

17 

3 

18 

Demand. 

May        14 

20 

Mar.  18,  '90 

Aug.  20, '90 

Mar.  24,  '91 

June       17 

17 

17 

19 

18 

3 


Ap'l 


Demand. 
June         9 
6 
Ap'l  3 

June 


Ap'l 
July 
Apl 
May 
Apl 
Jan. 
May 
Mar. 
Ap'l 
Jan'y 

July 
May 
Apl 


12 

3 

8 

3 

23 

8 

12 

23 

25 

3 

5 

10 

8 

19 

29 

20 


Demand. 
May        23 
12 
Ap'l        17 


Good. 


$41.  892. 

63. 
503. 

68. 

50. 
130. 
600. 


73 
47 
68 
19 
00 
00 
00 


74. 
1,  345. 
1,  000. 
1,  800. 

50. 
600. 


50 
39 
00 
00 
00 
00 


4L13 


606. 
500. 

38. 
948. 
500. 
400. 

50. 


50 

00 
60 
79 


00 
00 
00 


100.  00 
50.00 

100.  00 
50.00 

2.5.00 

467.  00 

99.00 

Doubtful. 


$5, 352. 69 


25.00 


3, 700. 00 
100. 00 


100.00 
90.00 


Worthless. 


$400.00 


200.  00 
100.  00 


50. 
101. 

5t). 
cOO. 
250. 


00 
50 
00 
00 
00 


75. 
200. 
100. 

75. 


00 
00 
00 
00 


1,000.00  1 
"25.' 66 


1,000.00 


25.00 

40.66 


25.00 


53.555.48       11,782.69 


700.00 


1, 100. 00 


Scheduled. — Quarto'  ending  SejHember  SO,  1891.  Collections  from  ^' other  assets,"  on 
hand  at  date  of  suspension,  by  the  receiver  of  the  Keystone  National  Bank,  of  Phila- 
delphia, Pa. 


Date. 


189] 

I. 

July 

8 

15 

22 

Aug. 

1 

16 

Description  of  assets. 


Amount  at  date  of  last  report 

Edward  T.  Davis,  overdraft 

National  State  Bank,  Camden,  N.  J. . , 
National  Bank  of  Commerce,  Boston 

Geo.  R.  Preston,  overdraft 

J.  D.  Lougaker,  overdraft 

John  W.Barron 


Good. 


$65, 274. 68 

3, 204. 32 

478. 68 

374. 84 

L75 

.23 


69, 334. 50 


Doubtful. 


$84.73 


i 


I 


.'.  h 


150.78 


•• 


'E 


511 


235.50 


384 


INVESTIGATION    OF   NATIONAL    BANKS. 


Schedule  E. — Quarter  ending  September  SO,  1891.    Collections  of  other  assets  acquired 
since  suspension  by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphiay  Pa. 


Date. 


1891 


Description  of  assets. 


Amount  at  date  of  last  report 

Manhattan  Life  Ins.  Co.  ret'd  policy,  J.  Bardsley 

National  State  Bank,  Camden 

Ft. Dearborn  Nat.  Bank, Chica <^o 

Nat.  Bank  of  Commerce,  Boston , 

Stock  assessments  as  per  schedule  N 


Good. 


$32,  826. 46 

487.00 

1,218.32 

3, 095.  83 

151.67 


37, 779. 28 


Doubtful. 


$53, 347. 96 


53, 347. 96 


Schedule  F. — Quarter  ending  Sept.  30, 1891, 18 — .    Premium,  interest,  rent,  etc.,  collected 
by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


i 


Date. 


1891. 


July 


3 
3 
7 
7 
7 
16 
16 


18 
22 
24 

Aug.  13 

Sept.  10 

July    8 

3 

7 


8 

10 
14 
15 
15 
15 
16 
16 
18 
24 
12 
13 
13 
20 
1 

10 
23 
Aug.  12 


Aug. 


Sept. 


18 
U 


25 

13 

13 

Sept.  10 

2 


Prom  what  source  collected. 


Amount  at  date  of  last  report 

Protest  fees  on  No.  97,  R.  S.  Collum.  due  4, 29 

32,  H.  Fillev  &  Sons,  due  1, 2  ... . 

68,  J.  H.  Reigle,  due  3, 20 

76,  W.  M.  Stuart,  due  3, 30 

103,  B.  H.  Davis,  due  5, 5 

Ill,  C.  Beamish,  due  5, 14 

72,  M.  Meagher,  due  3, 24 

217,  Cox  &  Sons,  due  6, 17 

88,  Excelsior  Hosiery  Co 

814,  Ivan  Muller,  due  4. 21 

189,  Edgar  N.  Black,  due  6, 6 

89,  WiTliain  Auld,  due  4, 8 

73,  Jacob  Hartman,  due  3, 25 

117,  Aman  &  Bro.,  due  5, 19 

Interest  on  No.  07,  R.  S.  Collum.  due  4, 29 

32,  H.  Fillev  &  Sons,  due  1, 2 

68,  J.  H.  Reigle,  due  3, 20 

76,  W.  M.  Stuart,  due  3, 20 

103,  B.  H.  Davis,  due  5, 5 

Edw.  T.  Davis,  over  draft 

51,  W.  B.  Hut<;hinson  et  al,  due  2, 17 

269,  Jas.  M.  Battf^rshy,  demand 

111,C.  Beamish,  due  5, 14 

137, 1.  Nolen.  due  8, 26, 90 

72,  M,  Meagher,  due  3,  24, 91 

217,  Cox  &  Sou,du66, 17 

219,  A.  G.  Kellogg,  due  6, 17 

88,  Excelsior  Hosiery  Co.,  due  4, 18. . . 

189,  Edgar  M.  Black,  <lue  6, 6 

1 64,  R.  Reach,  due  5, 23 

89,  Wm.  Auld,  due  4,  8 

73,  Jacob  Hartman,  due  3, 25 

35,  W.  H.  Brown,  due  1, 5 

37,  D.  L.  Drew,  due  1, 10 

116,  Aman  &  Bro,  due5, 19 

288,  D.  L.  Drew,  demand 

Interest  on  stock  assessment,  Mary  A.  Davis 

George  Brown 

R.M.Holbrook 

Jno.  A.  S.  Brown 

Jas.  "W.  Howard 

Henry  Johnson 

W.A.  Bender 

B.Goble 

Itobt.  Arthur 

Daniel  Buck 

Jos.  S.  Perot 

Wm.  J.  Barr 

Thos.  Massey 

Geo.  R.  Moloney 

Costs  on  No.  89,  Wm.  Auld,  due  4, 8 

73,  Jacob  Hartman,  due  3, 25 

117,  Aman  &.  Bro,  due  5, 19 

Interest  on  stock  assessment,  C.  C.  Newton 

Susan  T.Hibbard..... 

Jennie  Chambers 

Peter  Stang.  estate 


Amount. 


$70.71 
2.05 
2. 05 
2.05 
2.05 
1.54 


2. 
2. 

2. 


05 

05 

,05 

2.05 

2.05 

2.12 

2.05 

2.05 

2.05 

.68 

15.16 

1.81 

2.31 

2.10 

65. 4.J 

42.90 

94.97 

1.00 

4.41 

11.09 

2.25 

1.80 

14.76 

,80 

,30 

,64 

13 

83 

,75 

55 

50 

.17 

.17 

.10 

.12 

.14 

2.08 

.20 

.20 

.16 

.33 

.15 

.12 

.33 

.18 

6.40 

6.40 

6.40 

L75 

4.50 

3.00 

17.50 


6. 

1. 

2. 
18. 

9. 
11. 

9. 


470.81 


INVESTIGATION   OF   NATIONAL   BANKS. 


385 


Schedule  G. — Quarter  ending  Sept.  30,  1891,  18—.    Offsets  allowed  and  settled  hy  the 
receive?'  of  the  Keystone  National  Bank  of  Philadrdphia,  Pa. 


No. 


32 

68 

76 
103 
219 

82 
170 
172 
249 


Maker. 


On  bills  receivable,  as  per 
last  report. 

Harvey  Filley  &  Sons 

J.  H.  Reigle 


Endorser. 


Wm.  M.Stewart.... 

B.H.Davis 

A.  G.  Kellogg 

Marie  Brocacky  — 

Wm.  R.  Murphy 

John  Craig  &.  Sons  . 
McBride  Bros 


Harvey  Filley  Aluminum  P.  Co. 
H.Hall,    Kyle  Berry    &   Co., 
Cin'ti,  O. 

Kyle  Berry  &  Co.,  Cint.,  O 

do , 

A.G.Kellogg 

Marie  Brocacky 

Jno.  O.  Bowman 

Daniel  Coogan 

McBride  Bros 


On  other  assets,  as  per  last  report 

Protest  fees,  Wm.  R.  Murphy,  due  5, 27,  No.  170 . .. 
"  *     Jno.  Craie  &.  Sous,  due  5, 27,  No.  172  , 

City  treasurer,  check,  Drexel  <fc  Co 

City  treasurer,  check,  J.  Bardsley,  treas 

Do 

C.  E.  Roney,  treas.,  check 

Jno.  F.  Heilemen,  check 

Catts  Madden,  check 

H.  W.  Gray,  treas.,  check , 

Wm.  Godfrey,  check 

Jas.  Lilley ,  check 


Maturity. 


Good. 


1891. 


Jan'y  2 
Mar'  20 

30 
May  5 
June  17 
Apr.  7 
May  27 

27 
July     7 


.!  $16,309.00 

I 

431.81 
100. 00 

140.  00 
70.00 
311.40 
2(K).  00 
250. 00 
200.  00 
2,  031.  21 


Doubtful. 


20, 063.  42 


23,211.92 

2.05 

2.  05 

202. 50 

17H.  (»« 

10,  (!0(>.  W 

9.43 

14.00 

83.  00 

23.  46 

338.  58 

31.50 


231.60 


■M 


34, 157. 15 


2^1. 60 


Schedule  H. — Quarter  ending  September  SO,  1891.    Loss  on  '^other  assets"  by  the  receiver 

of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Date. 

Description  of  assets. 

Good. 

Doubtful. 

Worthless, 

1891. 

Amount  at  date  of  last  renort. ......................... 

$582.42 

$190. 31 

$116. 03 

Schedule  J. — Quarter  ending  September  30,  1891.     Bills  receivable  in  the  hands  of  the 
receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


No. 


119 
120 

121 
122 
123 
124 

125 

126 

127 

128 

129 
130 

131 
132 
133 
134 
135 


Maker. 


In  attorney's  hands  for  collection : 

E.E.  Serry 

Geo.  W.Wright 


Thos.  Denham  &  Son 
do 

do 

do 


CluMU  Zane 

Wm.  M.  Stuai-t 
Aman  &  Bro  . . 
E. R. Bryau  ... 


Geo.  W,  Smith 

Milton  C.  Greiuer 


Keystone  Watch  Club  Co 

do 

do 

do 

Lewis  Cassidy 

3927 25 


Maturity. 


1889. 
July    18 
Nov.    24 

1887. 
Jany.  21 
May    15 
June    30 
May     29 

1888. 
Nov.    16 

1890. 
Dec.     28 

1891. 
Janv.  16 

1890. 
Oct.       2 

1891. 
Jany.  17 
Feb".       2 

1890. 
Mar.    29 
A)d 


Good. 


Doubtful. 


Wortlih'ss. 


$287.  50 
5,  000.  00 

1. 15;>.  (H) 

:v.Kt.  (K) 
am.  00 

660.00 
2.  400.  00 


July 
May 


14 

27 
28 
21 


.$238.  20 

368. 12 

800.  0(» 

ltd.  Oi) 
404.  GO 

80.00 

10(1.00 

150.  (H) 

3, 500.  00 

144.73 


i 


I 


386  INVESTIGATION   OF   NATIONAL   BANKS 

Schedule  J. — Quarter  ending  September  30, 1891,  etc. — Continued. 


Ko. 


136 
138 
139 

140 

141 
144 

146 
147 
148 
149 
150 
151 
152 
153 
154 
155 
156 
157 
269 

113 

208 

6 
6 

8 
9 
10 
11 
12 
13 
22 
23 
26 
27 
29 
28 

36 

41 

55 

62 

64 

66 

67 

70 

71 

77 

84 

86 

87 

93 

94 

96 

98 

99 

102 

104 

105 

109 

112 

115 

lie 

261 
260 
175 
193 
196 
210 
212 
214 
207 
158 
163 
167 
171 
173 


Maker. 


Jno.  B.  Macafee. 
Jas.  W.  Sayre. . . 
F.  M.  Frieburg . 


C.  F.  Turner . 


B. Frank  Cooling. 
S.Robinson 


Wra.  M.  Griffiths 

C.G.Welch 

^y.  R.  Fenner 

Geo.  Rossiter 

Thomas  Brown.. 
do 


Maturity. 


.do 

.do 

.do 

do 

.do ! 

.do Juno 


1890. 
Apl.    18 
June  11 
Nov.     d 

1888. 
Deo.    12 

1891. 

Feby.  27 

"      14 

1890. 

Deo.    14 

Nov.  26 

27 

31 

18 

9 

21 

8 

16 

21 

31 

21 


Oct. 

Mar. 

Apl. 

Afay 


James  M.  Battersby 


Auio8  O.  Chase 
Gaud  McTvain 


IVmaiid 

1801. 

May      2 

June  13 

1890. 

Van  Dyke  &  Co i  Aj»l.    18 

Jas.  Kennedy ,  May      5 

Jas.  Mcuormick i  30 

C.  C.  Lippiucott j  30 

W.  Scarboroujili I  31 

H.F.  Atkinson  &.  Co |  June     4 

H.B.Driver !  Aug.   10 

G.Byron  Morse 16 

John  J.Corberry Dec.      3 

Jas.  N.  Elliott 5 

Alfred  Ilindle 24 

Roliert  ('aruH 25 

do 28 

James  Morgan 28 

1891. 

Jan'y    7 

27 

Feb'>  21 

Mar.    11 

14 

19 

20 

21 

23 

:tl 

10 

IH 

17 

22 

22 

25 

29 

30 

3 

7 

8 

11 

15 

18 

18 

19 

18 

29 

8 

9 

13 

15 

16 

12 

2U 

23 

23 

27 

28 


J  ameH  Morgan  . . . . 

Robert  Cams 

Thos.  W.  Dukson. 
Thos.  E.  Warmuu  . 

Robert  Cams 

do 

Lewis  W.  Wiley... 

RobtM.  Wiley  ■• 
Wilson  E.  Allen... 

Hugh  (rrahani 

Altred  D.  Cams ... 

Wm.  B.  CJreet 

Chas.  S.  Salin 

Charles  White  .... 
Sam'l  M.Mink.... 
G.  W.  M.  Jiigor... 

M.McNulty 

RobtM.  Wiley.... 

A.M.  Zane 

James  B.  Carey . . . 
Jacob  Y.  Dietriik  , 
Dean  C.  G.sbocne .. 
W.W.  Watson  ... 
Geo.  Howard  et  al 

J.S.-Whitty 

C.  A.  Meloney 

AV.  S.  •litek.so'n 

Henry  U.  Yard... 

<"lo 

do 

Mrs.  E.  Wanuuu . . 

do 

do 

W.  Y.AVarner.... 
Robt.M.Wilev... 
Geo.  W.  H.  Smith . 

M.B.  Dwight 

James  Birnie 

0. C. Bosby shell .., 


Apr. 


May 


June 


May 


Good. 


Doubtful.     Worthless. 


$500. 00 


144.50 


150.00 


2.'>0.  (M 
150.00 


47.87 


400.00 
102. 72 
100.00 


72.66    . 
1,000.00  !. 

90  !. 


133.00 


101.  62 
175. 00 
152. 21 
183.45 


$150. 00 
312.  72 
419.50 

150.00 

102.  20 
452. 11 

1.  000.  00 
.506.  00 
151.  50 
2.'iO.  00 
121.15 
250.  (iO 
250. 00 
2.'>0.  00 
2.T0. 00 
2.^0.  00 
250.  (iO 
25; ».  00 

4.  :too.  uo 


I 


400. 00 
183.75 


645.  00 
675.  00 
680.00 
694.  20 
1,  000. 00 


598.50 
1,000.00 
1,  0(M).  00 
1,000.00 

900. 0-.> 
500.00 


1 .  OOil.  00 
1,  000.  00 


1,200.00  . 
2(K).00  '. 
150.  IK)  . 


100.00 


232. 00 


I 


n.'i.oo 

7.'».  00 

1,000.00 

500.00 


1,000.00 


2,000.00 


1,200.00 


$360.00 


590.  00 


1,863.00 


»«.'..  00 
32,  4:tK.  72 
5.  :!(Mt.  (M) 
fi;  (XKt.  00 
1,.'»70.(H» 
1.2.'>0.  0<» 
1,915.(H» 


.    INVESTIGATION   OF   NATIONAL   BANKS. 
Schedule  J. — Quarter  ending  September  SO,  1891,  etc. — Continued. 


387 


No. 


177 
178 
181 
186 
188 
194 
211 
224 
225 
236 
237 
241 
244 
245 
247 
235 
254 

25 

75 

85 

110 

42 

45 

49 

53 

74 

95 

101 

106 

159 

162 

180 

199 

227 

228 

246 

251 

253 

201 


Maker. 


£.  J.  Lea 

W.  L.  Lance 

Anton  Aman 

Greo.  F.  Lowry 

E.T.  Townseud,M.D. 

Christian  Mack 

Isaac  Brown 

Heiu-y  Redman 

J.  L.  Crammer 

W.M.  Hirst 

A.  G.  Clemmer 

N.  Moritz 

Wayne  Stone  Co 

Excelsior  Hosiery  Co 

Henry  H.  Yard 

Mary  Myers 

Excelsior  Hosiery  Co 


John  M.  Driver . 


John  F.  Zebley 

John  J.  Pyle 

Wm.  D.  Troupe 

Cha.s.  McGladc 

......do 

do 

do 

Wm.  J.  Simmons 

do 

do 

do 

do 

T.W.Manship 

Wm.  J.  Simmons 

do 

Mary  H.McGhide 

Constantine  Carpenter . 

J.  L.  Cramer 

Wm.  J.  Jackson , 

D.  M.  Stackhouse 

Wm.M.  Griffiths 


Maturity 


June 


1891. 

May    29 

29 

29 

6 

6 

8 

15 

23 

25 

7 

8 

10 

13 

14 

17 

6 

21 

1890. 

Dec.  24 

1891. 

Mar.  27 

Apr. 

May 

Jan. 

Feb. 


Good. 


July 


July 


Mar. 
Apl. 
May 


June 


July 


June 


16 
12 
28 

5 
12 
19 
25 
23 

3 

9 
20 
23 
30 

9 
27 
30 
17 
18 
20 
10 


$144. 
142. 
125. 
315. 

75. 
100. 

35. 

90. 


10 
15 
00 
00 
00 
00 
90 
00 


Doubtful.    Worthless. 


1^.1 


155. 

100. 

1,000. 


00 
00 
00 


$1, 000.  00 


1, 025. 00 


306. 
1,490. 


25 
00 


500.00 
1,000.00 
75.00 
2,  500. 00 
2, 500. 00 
2, 500. 00 
2, 500. 00 


200.00 


2,000.00 


1, 000. 00 


1, 000.  00 


135.00 
195.00 
195.  <  0 
65.00 
175.00 


330. 00 
540.00 


864.00 

500. 0!0 

3. 109.  <i7 


675.00 


1,  003. 00 


^%;   \ 


$6, 500. 00 


■  J^i 


No. 


3 
4 

7 
14 
15 
16 

17 
18 
19 
20 
21 
24 
30 

31 


Maker. 


L.  L.  Cann. 


M.  D.  Lacoy 


H.  B.  Driver 

Chas.  Lawrence 

P.Wallace 

Chas.  E.  Glentworth 
Edmund  Stewart  — 
Morris  L.  Lessley 


W.F.Shaw 

John  Smith.... 
H.W.Kel8ey.- 
Willis  G.  Hale 
Wm.  Calhoun.. 
Jas. L.Allan.  .. 
— do 


S.  K  Packard,  agt. 


33   do 

34   do 

38  ! do 

39  ;  Frank  J.  Primrose 

40  I. ...do 


43 


W.  H.  Moyer 


Jaa.  L.  Allan. 


Endorser. 


L.  L.  Cann 


L.  D.  Lacoy,  E.  P.  Good- 
man. 
H.B.  Driver 

B.  M.  Goldberg 

P.Wallace 

Wm.  Calhoun 

Edmund  Stewart 

C.  A.   Thompson,  J. 
Hayes,  Treas. 

W.F.Shaw 

John  Smith 

H.W.Kelsev 

Willis  G.Hale 

Jno.  Hayes,  Treas 

Faulkner  &.  Allan 

...do 


fl.E.Packard,  H.  S.Pack 
ard. 

....do 

....do 

....do 

Frank  J.  Primrose 

...do 

1  James  R.  White,  man-  " 
agor;  G.B.Haines, 
M.  E.  Lucas,  admin- 
istrator est.  J.C.Lu- 
cas, 
Taulkner  &  Allan .... 


Maturity, 


1888. 
Apl.  10 

1889. 
Apr,    8 

1890. 
Feb.  25 
Mar.  15 
May  28 
Sep.  5 
15 
Oct.  21 

28 

Nov.    5 

23 

24 

23 

Dec.     7 

30 

189L 

Jan.     1 

3 

4 
11 
20 
27 


29 


30 


Good. 


400.00 

610.00 

60.00 

227. 00 

1, 500. 00 

600.00 

2, 000. 00 

1,400.00 


Doubtful.     Worth^e^s. 


100.00 


$2. 437. 06 
100,00 
150.00 


1, 950. 00 
100.00 


2, 000. 00 


1«050 


2,500.00 

3, 200. 00 
2, 500. 00 
6, 000.  00 
2, 895. 66 
2, 566.  77 


4,368.46 


^^1 


388 


INVESTIGATION   OF   NATIONAL   BANKS.        ^ 


INVESTIGATION  OF  NATIONAL   BANKS. 


389 


No. 


46 
47 
48 
50 
52 
54 


56 
57 


58 
59 

60 

61 

63 
65 

79 
92 

100 
114 
118 
160 
166 
168 

216 
223 
234 
248 

250 
255 
191 
197 
205 
213 
222 


264 
265 
266 
267 
270 

271 
272 
273 
274 

90 

78 
108 


Schedule  J. — Quarter  ending  September  30,  1891,  etc. — Continued. 


Maker. 


Frank  J.  Primrose 

D.  J.  Thompson 

Frank  J.  Primrose. 

W.  H  Mover 

Frank  J.  Primrose. 
W.H.Moyer 


Sprine    Lake    Beach 

Imp^t  Co. 
W.  H.  Moyer 


do 

Jas.  L.Allan 


S.E.  Packard,  agt. 
do 


James  J.  King 

Penn  Roofing  Co 

Clinton  V.  B.  Getty  ... 
Keynolds,  Goodyear  & 
Co. 

Emma  C.  Keed 

Jno.  MoFadden 

R.Q.  Gibbon 

M.  E.  Broderick 

Aman  &.  Bro 

Morris  Spackender . . . 


Jno.  McFaddcn 

Isaac  Fleming 

James  Keilly 

do 

J.  S.  Carter 

Geo.  J.  Raymond  &  Co 

Jno.  S.  Mcllvain 

Jno.  S.  McMurtice 

H.  W.Kelsey 

J.  Henry  Gereke 

The  Bradford  Hills 
Land  Co. 

Bonner  &  Eisler 

Ernest  Bedford 

Bureau  Car  Co.,  No.  1. 

Maurice  Landaner — 

C.Han 

Dell  and  Jno.  C.  Mob- 
lit  &  Co. 

G.W.Marsh 

D.L.Drew , 

Horatio  G.  Kern 

John  J.  Pyle 


Endorser. 


Maturity. 


Frank  J.  Primrose 

Faulkner  &  Allan 

Frank  J.  Primrose 

Jas.  R.  White,  manager  . . 

Frank  J.  Primrose 

Jas.  R.  White,  manager, 
G.  B.  Haines,  M.  E.  Lu- 
cas, administrators  est. 
J.  C.  Liicas. 

Spring  Lake  lieach  Imp't. 
Co. 

Jas.  R.  White,  manager, 
G.B.Haines,  M.E.Lu- 
cas, adminiHtratorsest. 
J.  C.  Lucas. 

Jas.  R.  White,  manager . . 

Faulkner  &  Allan 


H.    E.    Packard,  H.    S. 

Packard. 
do 


John  W.  Barron  . . . 

F.A.Mitchell 

Cliutou  V.  B.  Getty 
T.J.  Dunn  &  Co... 


Emma  C.  Reed 

Henry  M.  Hugh 

Geo.  Keyler , 

K.  L.  McMeraony 

R.  L.  (fibbons 

Doran  Young,  Jno.  Craig 
and  Son. 

Henrv  McHngh 

F.  A.'Davis , 

H.  J.  <fe  G.  R.  Crump 

do 

F.A.  JMavis 

J.E.  Potter  &  Co 

C.  C.  Hawes 

W.D.Price 

H.  W.Kelsey 

J.  A.  Gereke 

Kelson  F.  Evans 


J.W.Baker 

D.Chambers — 
Chas.  P.  Herold . 


Lees  error  in  addition  Ist  report 


S.  Black 

E.Re«lford 

O.  C.  Bosey shell 

M.  Landaner 

C.Han 

D.  &  J.C.Moblit  &Co. 


G.W.Marsh 

D.L.Drew...... 

Horatio  G.  Kern 
John  J.  Pyle 


Wm.  J.  Divine  . 
D.  Chambers... 
Chas.  P.  Herold 


1891. 
Feb.  5 
10 
12 
13 
19 
23 


Mar.     1 
Feb.    28 


Mar.     4 

7 
1890. 
Nov.    30 

Dec.     16 

1891. 

Mar.    11 

14 

Apr.      2 

20 

May      2 

16 

Apr.    27 

May    20 

23 

26 

June  17 
22 

July  6 
17 
16 

May    22 

June     7 

9 

12 

16 

20 

July      8 

Demand 

....do... 

....do... 

...do... 

....do... 


....do... 
....do  ... 
....do... 
...do... 

1891. 
Apl.     20 

May    11 


Schedule  H,  1st  report,  with  clearing  house  as  collateral  for 
loan. 


Good. 


Doubtful. 


$300.00 
120. 00 

iis.oo 
"356.' 66 


400.00 
270.00 

350.00 
500.00 


700.00 
'466.06 


650.00 
375.00 


600.00 

2,666.66  '. 

200.00  j. 

K1.12  j. 

400.00    . 


38, 442. 27 
32 


38. 441. 95 
182, 319. 60 


220, 761. 55 


S150.000 


350.00 


Worthless. 


I. 


55.00 

250.00 

"456.66 


4,650.00 
6, 912. 00 


293. 35 
50.66 


82.50 


1, 210. 00 
700. 0 » 
.')(K).  0() 

1,500.00 


67, 104. 80 


$1,976.78 


2, 261. 70 
4, 454. 01 
3, 105.  95 
4, 310. 92 


5,000.00 
4, 506. 21 

4,019.92 


5,600.00 
6,200.00 


500.00 


2,  GOO.  00 

i,666.66 


1,000,00 

"*698.'ii 


14:{,  530. 77 


67, 104. 80 
293,  763. 80 


360, 868. 60 


14:J,  530, 77 


143, 530, 77 


Schedule  K. — Quarter  ending  September  30,  1891.    AhscU,  other  titan  bills  receivable, 
in  the  hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Fa. 


Description  of  assets, 


Overdrafts : 

R.  A.  Arthur 

H.  Askin 

H.J.Brady 

John  Bardsley 

J.  M.  Batteraby 

J.M.Bradford 

Beach  House 

C.E.Billen 

O.C.BosbysheU 

H.  Brown 

Chas.  Brown 

H.  L.  Bowman,  jr 

Fannie  Buckhuster 

Bemais  Car  Co.  No.  1 

J.  W.  Catharine 

Robert  Cams 

(Jeorge  Canby 

Sarah  E.  Collier 

George  E.  Cummings 

Wm.  Calhum 

Sarah  Crump 

H.  J.  &  G.  R.  Crump 

John  Crump 

Jas.  Dickson 

J.N.Greer 

Anna  E.Griffith 

R.M.  Goldberg 

Jos.  S.  Harrison 

G.  L.  Harvey 

J.  Smith  Harris 

C.  C.  Haines 

F.LHerdic 

W.H.  Hnlings 

S.C.Hoyt 

R.  C.  Horr  &  Co 

W.  J.  Jack.son  &  Co.,  agt's 

W.  B.  Jones 

P.  L.  Krager 

M.  Kennedy 

Jacob  Kennedy 

H.G.Kern 

Ada  C.  Kinney 

John  M.  Kyle 

P.  Lowrj- 

A.  A.Lowiy 

J.  C.  Luca.s'est 

M.  Eli?,.  Lucas 


Mrs.  J.  C.  Lucas 

Anthony  Lynch 

J .  B.  Macafee 

Wm.M»Connell 

J.  S.  McKinlev , 

AV.  W.  Matthews 

E.  C.  Merriman 

W.K.  Mitchell 

Morgan  Bros 

J.  A.  Morrell , 

W.H.  Moon 

M.  A.  Mumper 

E.O'Donmfl 

Petty  overdrafts  reported,  $2,719.77. 
Devm  Inn,  deduct  $67.96 

C.  H.  Moore,  deduct  $62.15,  $130, 11 . . , 
Pliila.  Harness  Supply  Co., petty.., 

D.  S.  Paul,  petty 

E«l\v.  W.  Patton 

P.  LPatton 

Nellie  C.  Parker,  petty , 

Herman  Perls,  petty 

Penn.  Mat.  Elec.  Co 

Isaac  S.  Pine,i)etty 

W.H.  RaM'  &  Co., petty 

Francis  Rankin,  petty 

A.  D,  Raniborger,  petty 

A.W.Raikin 

Remington  Pyne 

J.  S.  Riddle .." 

J. O.K.  Roberts 

Terrance  P.  Smart,  treas 


Good. 


$0.05 
4.00 


42.55 
8.70 


27.69 
"4.56 


23. 25 


2.01 
23.49 


40.27 


30.30 

152. 05 

9.60 

1.00 

5.00 


38.80 

134.  61 

1.18 

1,210.68 

1.50.  00 

11.28 

3.30 

3.50 

1.80 

20.00 

865.29 

.05 

44.85 


L04 


2.84 

752. 84 

.75 


20.46 
28.74 


86.00 


Doubtful.    Worthless. 


.29 
89.66 


$149.99 

331. 00 

1.  287.  71 

34, 088. 52 


4, 879. 42 


181.00 
is.  30 


4,900.00 
1.467.33 


39. 32 

254.89 

1, 198.  85 

7, 631.  33 

3.  772. 94 


499.37 


6,  078.  75 
270. 53 


10,3.59.29 

11,744.94 

5,  309. 98 


2, 055. 82 


676. 14 


643.34 

58.  .50 

535.35 


85.46 

2, 146. 26 

661.80 

6.00 

47.07 


3.68 


8.24 


•;( 


$2,  589.  66 

67.96 

62. 15 

985. 75 


2.00 
54.55 


LOS 

24.83 

100.77 


475. 71 


^mi.ii  >■ 


1( 


390 


INVESTIGATION   OF   NATIONAL   BANKS. 
Schedule  K. — Quarter  eii4ing  September  30,  1891 — Continued. 


INVESTIGATION   OP   NATIONAL   BANKS. 
Schedule  K. — Quarter  ending  September  SO,  1891,  etc. — Continued. 


391 


Description  of  assets. 


Overdrafts: 

W.F.Shaw 

Jesse  W.  Starees,  Jr.,  petty. 

F.H.Sanford,  petty 

Jas.  W.  Sayers,  petty 


J.  H.  Shaw,  mgr.,  petty 
Santa  Clara  Wine  Co.,  petty. 


D.  B.  Saxton,  petty. 

J.  Statman,  agt.,  petty 

Geo.  W.  Shederick,  petty  . . . . , 
Geo.  "W,  Stewart,  treas.,  petty . 

David  Stewart,  petty , 

John  Simpson,  petty , 

H.  Oscar  Smith,  petty 

Stiles  &  Fox,  petty 

J.  R.  Shirley,  petty 

Wm.  Snowaen,  petty 

Mrs.  C.  K.  Shoeinaker , 

H.  C.  Schomaeker , 

C.M.Southwell 

J.  W.  Sclmldt,  petty 

Jacob  Stultz,  pt't  ty 

N.  W.  Talbot,  iM't  1 V 

Mrs.  A.  W.  Trenholra 

I.  J.  &,  C.  Foddiugtun,  petty. 
Anna  K.  ThoinpHon,  petty.". . 

Jos6  Irraga,  petty 

C.  A.  Thompson,  petty 

E.  W.  Tliome 

J,  M.  Van«lever,  i>etty 

Joh6  Vivo '. 

Yineland 


Good. 


10.10 


.08 


5.24 


C.  D.  Watts,  petty 

John  A.  Wallace,  petty 

M.  B.  Wannaraaker 

John  Wannamaker,  pers 

W.Walker 

R.H.Walker 

J.  R.  Wear  &  Co.,  petty 

Wm.  Wehh,  petty 

Charles  West,  petty 

J( >se]>h  A.  Wilson 

I.  H.  Whiting 

C.  A.  Wood,  trustee 

Due  by  hanks : 

Bank  of  Batavia,  Batavia,  N.  T 

First  National  Bank,  Media,  Pa 

Merchants  &  M'fg  Nat.  Bank,  Pittsburg 

Farmers  Nat.  Bk.,  West  Chester,  Pa 

Cash  items : 

2,11, '91.  Pro.  ck.  L.  Dalmas,  Chester 

3, 13,  '91.  Ck.  Jno.  Haves,  balance 

9, 13,  '90.  Ck.  Real  Est.  Trust,  S.  M.  Broadbent,  bal 

2, 13,  '90.  Pro.  ck.  J.  H.  Longstreet 

6, 27, '90.  Ck,  John  W.Barren 

9. 16,  '90.  Pro.  ck.  L.  Groft  <fc  Co. ;  endor8e<l  C.  McGlade. . 
10,  29,  '90.  Pro.  ck.  H.  I).  Holt;  endorsed  F.  A.  Mitchell  . . 

3, 12, '91.  Ck.  H.  Quinn;  endorsed  I.  M.  Love 

2, 11,  '91.  Ck.  W.  A.  Barritt;  endorsed  Penn  Granite  Co  . 

3, 18, '91.  Ck.  W.F.Shaw 

3, 19, '91.  Ck.  Jos.  N.  Cooling 

12,1«,'90.  Ck.W.Callraan 

11, 11, '90.  Ck.  W.  Calhnan ;  endorsed  W.  fallman 

11, 11,  '90.  Note  J.  L.  Galloway ;  end.  W.  Callman,  jr 

2, 1,  '90.  Note  J.  McConiicll,  cash  $5  attached 

3.17,  91.  Ck.  Wm.  Callman 

1,3, '91.  Ck.  G.  L.  Harvey 

9, 20, '91.  Ck.  G.  L.  Harvey 

1,13, '91.  Ck.  G.  L.  Harvey 

9, 13, '90.  Ck.  G.  L.  Harvey 

3, 19, '91.  Ck.G.W.  Marsh 

3.13, '9L  Ck.G.W.Marsh 

3, 6, '91.  Ck.G.W.  Marsh 

3, 13, '91.  Ck.G.W.  Marsh 

3, 16, '91.  Ck.G.W.  Marsh 

3, 19, '91.  Ck.G.Marsh 

12, 16,  '90.  Note  Howard  Patterson ;  end.  G.  W.  Marsh . . . 
2,  6,  91.  Receipt  for  postal  note 

Memo  lat.  Teller  short 

ti,  10,  91.  Pro.  ck.  L.  Dalmas,  Chester  ($40  cash  turned  over) . 
Exchanges  for  clearing  house  3,  29,  held  by  them 


.15 


$9.84 


4, 929. 98 
334. 36 


13.42 


Doubtful.     Worthless. 


Description  of  assets. 


1.2.5 
.27 
.40 
.35 


6.50 

150.00 


I 


190.95 


.97 

200.00 

112.02 

70, 005. 46 


$238.96 


9.71 
28.38 


1.95 
'2.' 66 


2, 659. 71 
26.87 


891.24 


31.08 

87.  54 

$1.  10 

4.94 


2. 467. 14 


64.00 
49.50 


18.01 
49.19 


197.00 

57. 26 

641.13 


341.47 


152. 12 


2.^2.  06 

100.00 

1,476.56 

2iW.  67 

20.  00 
4(51.52 

60.  00 
261.63 

25.  00 
190.00 


140.  00 
262.  25 
125.00 
250.00 
145.  00 
200.00 


$127. 15 


Traction  bondj*  held  by  C.  H 

Sea  Girt  and  Spring  Lake  stock.. 

Furniture  and  fixtures 

Excess  of  bonds  over  circulation. 


70.91 
841.92 


Good. 


Doubtful. 


$100,000.00  !. 


$500.  000. 00 
10. 000. 00 


5,000.00  '. 


Worthless. 


184, 803. 10  i  623, 683. 77         $9, 166. 1 1 


Schedule  L. — Quarter  ending  September  30, 1891,  other  assets  acquired  since  suspension,  in 
the  hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


1.00 

18.49 
.99 


1.00 


189L 


1, 8C8. 32 
10.00 


$496.81 


Fred  C.  Gerpil,  additional  overdraft 

Overdrafts,  correction  of  former  statement. 
Check  J.  A.  Keating,  3, 21, 90,  Wilkesbarre. . 

Nat.  Bank  of  Commerce,  Boston 

Harrisburg  1st  Nat,  Bank 

Media  Ist  Nat.  Bauk 

Washington,  Crane,  Parris  &Co 

Stock  assessment  uncollected 


$1.00 


.3.54 

56.  75 

.27 

116. 10 


$10. 810.  62 
40.00 


446,  652. 04 


177.66  !    457,502.66 


46.82 


La5 


4.12 


Schedule  M. — Quarter  ending  Septembm'  30th,  1891.  Premium,  intei'est,  etc.,  collected  by 
Comptroller  of  the  Currency  for  account  of  the  Keystone  National  Bank,  of  Philadelph  ia, 
Pa. 

1891. 
Sept.  1.  Interest  on  TJ.  S.  Bonds  $50, 000  to  June  1,  held  by  Treasurer  of  U.  S.  to  secure  circula- 
tion     $562.50 

Balance  remaining  to  cr.  of  5  per  cent  redemption  fund 2, 25u,  00 


4.12 


162.00 

98.50 

7.68 

250.00 
45.00 
,50.00 

700,00 


2, 812. 50 

Schedule  N. — Quarter  ending  Sep.  30,  1891.     Amount  of  assessment  paid  by  stock- 
holders of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 

1891. 

Aug.  6.  Josephine  Harman,  40  shares $2,000.00 

6.  Walter  Garrett, 50 shares 2,500.00 

6.  Chas.  T.  Matthews,  25  shares 1,250.00 

7.  C.  Briiitzinghotfer,  6  shares 300.00 

7.  Henry  Jones,  10  shares 500.00 

7.  W,  F.  Leech  and  W.  H,  Leech,  jr.  (same  person),  20  shares 1, 000. 00 

8.  Mary  Ann  Davis,  32  shares,  on  account 6(K).  00 

8.  Letitia  Canning,  15  shares 750. 00 

8.  Mrs.  S,  C.  Graham,  15  shares 750.00 

8,  BenJ,  F,  Janet,  10  shares 500. 00 

10.  David  A.  Over,  50  shares 2,500.00 

10.  S.  Owensetler,  12  shares 600.00 

10.  Erwin  Agnew.  50  shares 2,500.00 

10.  Jno.  O.  Holbrook,  15  shares 750. 00 

11.  James  G.  Peel,  5  shares 250.  W 

11.  Jane  Hibbard  Logan,  2  shares 100. 00 

11.  McBride  Bros.,  5  shares 250.  00 

11.  Sarah  C.  Chapin,  12  shares 600. 00 

11.  Siedenbach  &  Enburg,  12  shares 600. 00 

11.  Walter  B.  Smith,  10  shares 500. 00 

11.  George  Stang,  100  shares 5. 000. 00 

11.  Wm.  V .  Long,  62  shares 3, 100. 00 

11.  BeivJ. C. Long,  19  shares 950.0(» 

11.  Wm.  McCausland,  12  shares 600. 00 

11.  J. R.  Sower, 8  shares 4(H).0(> 

11.  Mifflin  Wheeler,  15  shares 750. 00 

12.  Mary  Ani7  Davis,  32  shares,  balance  of 1,000.(K> 

12.  Creorge  Brown,  20  shares 1 ,  000. 00 

12.  R.  M.  Holbrook,  12  shares 600. 00 

12.  Susan  Y.  Hibbard,  36  shares,  on  account 900.  «K) 

12.  Samuel  Lucas,  20  shares 1,000.(K) 

12.  Jno.  P.  Logan,  25  shares,  on  account 625. 00 

12.  Jno.  A.  S.  Brown,  15  shares 7.50.  (M) 

12.  DeWitt  Bodine.  20  shares r 1, 000. 00 


n 


^1 


3&2 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


393 


; 


y 


Schedule  l^.—Qv^rter  ending  September  SO,  1891,  e<c.— Continued. 

1891. 

Aug.  13.  Esther  A.  Shellonbergcr,  12  shares $600,00 

13.  James  W.  Howard,  25  shares 1,250.00 

13.  Henry  Johnson,  125  shares 6,2.'>0.00 

13.  Robert  Arthur,  10  shares 500.00 

13.  W.  A.Bonder.  12  shares 600.00 

13.  B.Goble,  20  shares,  on  account 600.00 

14.  Marjr  Ann  Goforth,  1  share 50.00 

14.  Daniel  Buck,  20  shares 1,000.00 

14.  Joseph  S.  Perot,  6  shares : .,,.  ;«oo.  00 

14.  Wm.J.Barr,  5  shares 250.00 

14.  Thomas  Massey,  20  shares 1,000.00 

25.  Geo.  R.  Meloney,  3  shares,  on  account 72.96 

Sept.  2.  C.  C.  Newton,  10  shares 500.00 

11.  Susan  Y.Hibbard,  36  shares,  balance 900.00 

16.  Mrs.  Jennie  Chambers  (certificate  M.  J.  Chambers)  10  shares 500. 00 

22.  MaryStang,  edr.  est.  Peter  Stan g,  deceased,  50  shares 2,500.00 

53. 347. 96 

Schedule  O.^Quarter  ending  September  SO,  1891.    Loans  paid  and  other  dinhursemevta 
by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1891.    Amount,  as  per  last  report $1,085.15 

July   1.  Juan  T.  Portuondo,  collections  mnde  since  su.spciision ;{.')<».  50 

3.  Leon  Tsaacs  &.  Co.,  collections  made  since  suspensicm 174. 80 

21.  Real  Estate  Trust  Co.,  protestetl  item  retturned  prot4'8t  fees 2. 14 

Aug.  13.  A.  L.  Humraal,  overdraft  paid  in  error  returned 4.  IW 

Sept.  1.  Expense  of  assorting  and  redeeming  notes  prior  to  date  of  8U8i)cu.sion 19.  ()7 

2, 243. 10 

Schedule  V.— Quarter  ending  Sep.  SO,  1891.    Legal  expenses  paid  by  the  receiver  of  the 

Keystone  National  Bank  of  Philadelphia,  Pa. 

1891.  Amount  as  per  last  report $111.25 

July  16.  Read  &  Pettit,  coats  advanced  in  23  cases,  actions  of  assumpsit 52.  so 

16.  Wm.  Wharton  Smith,  notary  public,  21  attidavits 10. 50 

16.  "Wm.  R.  Leeds,  U.  S.  marshaJ,  service  of  22  writs  and  statements,  Nos.  36  to  57,  in- 
clusive    ft->.  .50 

22.  Read  &  Pettit,  cost  and  notarial  fee  advanced 7.90 

29.  Wm.  Wharton  Smith, notary  public.  10  affidavits,  Nos.  60  to  68,  inclusive, and  No. 32  5. 0) 

29,  Samuel  Bell,  clerk  C,  C,  U,  S.,  tees,  No,  00  to  68,  inclusive  (assumpsit) 21,60 

31.  Samuel  Bell,  clerk  C.  C.  U.  S,,  fees,  Nos,  69  to  KKt,  inclusive  (do) 76, 80 

31.  Wm,R.Leeds,U.S.  marshal,  fees,  service  writs  and  statements,  Nos.  60  to  68.  inclusive  :il.r>0 

31.  Wm.  R.  Leeds.  U.  S.  marshal,  fees,  wrvice  writs  and  .statements,  Nos.  69  to  100  incl . .  80. '  0 

Aug.  18.  Petty  cash,  j)er  W.  C.  Ryan,  notary's  and  marshal's  fees,  service  writs  and  stateuu  iits 

and  2  affidavits,  $4.50 ;  alias  writ,  service  of,  and  statement,  $5. 90 10. 40 

18.  Samuel  Hell,  clerk  C.C.  U.  S.,6  ti.  fas 14.40 

18.  Wm,  A^'harton  Smith,  not.ary  public,  25  affidavits 12. 5 ) 

21 .  Sam'l  Bell,  clerk  C.  C  U.  S.,  fees,  Nos,  105  to  108  incl.  (assumpsit) 9. 6 J 

22.  Wm,  R,  Leeds,  IT.  S,  marshal,  service  writs  and  statements  (Nos.  105-108  incl.) 14. 00 

22.  William  Wharton  Smith,  notary  public,  fees  4  affidavits 2. 00 

Sep.      8.  Read  &  Pettit,  i  clerk's  costs  m  re  petitions  to  conipound  deltts  of  Crump  &  Faulk- 
ner &  Allen 6. 40 

8.  Joshua  Pusey,  esq.,  J  examiner's  fees  in  above  petitions 40,  oo 

8.  Read  &  Pettit,  costs  atljan<ed 24. 60 

29.  Wm.R.  Leeds,  U.  S. mar.shal,  fees,  4  fl.fas' 12.21 

30.  Petty  cash,  per  W.  C.  Ryan,  t#  U. S. marshal,  8  fi.  fas' 8.0.) 


61G.  00 

Schedule  R. — Quarter  ending  Sept.  SO,  1891.     All  other  ejrpenses  paid  by  the  receiver  of 

the  Keystone  National  Bank,  of  Philadelphia,  Pa. 

1891.      Amount  as  per  last  report $8, 058, 28 

July     7.  Harry  C.  Jones,  services  on  first  report  and  quarterly  statement 40, 00 

9.  Petty  cash,  i>er  Wm.  C,  Ryan :  Telegram  from  Com]»troller.  $1,01 :  i>ostaffediie]»aid. 
.02;  BoUes  banks  and  d'ejMisitors,  $4.50;  sui)pers  for   three,  .^2.3.5,    (fon  e  worked 

late  at  night,  after  hours,  no  charjje  for  extra  work) ;  postage  staiii))s,  $3 10. 88 

22.  Petty  cash,  per  W,  C.  llyau :  May  Foster,  washing  towels  to  date,  .$2.40 ;  W.  ( '.  Ryan, 
expenses  to  Washington.  $9.20;  j>08tage,  $26;  telegram  to  re<'eiver,  .25;  messen- 
ger, .10;  telegram  to  receiver,  .27 38.22 

31.  Charles  R.  Ege,  bookkeeper,  salary  for  July loo,  00 

31.  John  G,  Divine,  cashier,  salary  for  July 125, 00 

31.  Lillie  Bums,  stenogrujiher,  salary  for  July 32. 00 

31.  Wm.  C.  Ryan,  assistant,  salary  for  July 125.00 

31.  Petty  cash,  per  Wm,  C.  Ryan :  Postage,  $2.00;  copying  book,  $1.00 3.00 

Aug.    4.  Wm.  S.  Watson,  printing  assessment  notices 15. 25 

4.  Wm.  T.  Murphy  8  Sons,  blank  book  for  receiver 52.  75 

7.  Protest  fees  paid , 2,96 


1891. 
Aug.  7. 
12. 
12. 
12. 
12. 
18. 


29. 

26. 
31. 
31. 
31. 
31. 
31. 
Sept.  8. 
8. 
15. 
15. 
15. 


29. 

29. 
30. 


30. 
30. 
30. 


Schedule  R. — Quarter  ending  Sept.  SO,  1891,  etc. — Continued. 

Burke  <fe  McFetridge,  blank  receipt  book  for  stock  assessments $5, 50 

Chas.  B.  Rees  Son  &  Co.4ce  at  bank  from  3,  21,  to  6,  13 5.90 

Wm.  S.  Watson,  printing 17. 75 

Est.  of  Thomas  Aurocker,  dec'd,  new  lock  on  table,  etc 3. 00 

"Public  Ledger,"  advertising  assessment  notice 29. 60 

Petty  cash,  per  W.  C.  Ky an  :  Matches,  .20;  janitor,  arranging  boxes,  paper,  etc..  in 
vault, $3;   "receiver  of  corporations,  $6;   postage, $1;   postage,  $2;  tyiie writer's 

supplies,  $2. 25 ;  rubber  stamp,  $1. 75 10. 20 

Petty  cash,  per  W.  C.  Ryan :  tow'd  services,  $3.60 ;  messenger  boy,  .45 ;  ty i)ewi-iter 

pai)er,  .60 ;  penholders,"  .40  5. 05 

Protest  fees  paid  Jno.  W.  Banon.  notary  public KHJ.  05 

Lillie  Bumes,  stenographer,  salary  for  August 32,00 

Chas.  R.  Ege,  bookkeeper,  salary  for  August  and  J  amount  paid  for  bond  to  receiver  112. 50 

John  G.  Divine,  cashier,  salary  for  August  and  J  amount  paid  for  bond  to  receiver. .  l.'iO.  00 

Wm.  C,  Ryan,  assistant,  salary  for  August  and  |  amount  paid  for  bond  to  receiver  .  150. 00 

Edison  Electric  Light  Co.,  electric  light  at  bank  from  3,  20,  '91,  to  5,  25,  '91 75. 36 

The  Philad'a  Towel  Supply  Co.,  towel  service  at  bank  after  suspension 20. 00 

The  Press  Co.,  adv.  notice  of  receivers  appointment,  3  mos 04  80 

Fai'rell  &  Co.,  opening  vault,  repairing  lock,  etc 4.50 

Receivers  expenses  to  Washington  (Sept.  9) 11.25 

Petty  cash,  pr.  W.  C.  Ryan:  Janitor  work  in  vault,  .50;  telegrams  to  CJomptroller, 
$L49;  postage  for  circulars,  $10;  ledger  for  stock  (transcript),  $1.05;  Mary  Fostt>r, 

washing  towels,  $3 10, 04 

Jacob  Myers,  erecting  railing,  counters,  shelves,  etc.,  in  room  21,  3rd  floor  P.  0.  build- 
ing anil  removing  and reeretting  same  in  room  29 332, .'J8 

Wm.  S.  Watson,  printing  notices,  circular  to  depositors  to  prove  claims 4. 50 

Petty  cash,  per  Wm,  C.Ryan :  Chas, R. Ege,  salary  from  1st  to  5th,  $16,67,' ribbon 
stamp,  1.50;  janitor's  services,  with  one  man,  moving  from  room  21  to  29,  $15;  post- 
age, $1  34,17 

John  G.  Divine,  cashier,  salary  for  Sept«ml)er 12.5,00 

Lillie  Bumes,  stenographer,  salary  for  Sei)teml)er 32. 00 

Wm.  C.  Ryan,  assistant,  salary  for  September 125. 00 


10,171,89 


Schedule  S. — Quarter  ending  Sept.  SO,  1891.    Claims  in  dispute  against  the  Keystone 

National  Bank,  of  Philadelphia,  Pa. 

Amount  as  per  last  report $926,748,18 

Schedule  U. — Quarter  ending  Sept.  30, 1891.    Liabilities  canceled  bji  offset  and  other- 
wise by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $40. 865. 61 

Harry  Filley&  Son,  note  No.  32 431.81 

J.H.Reisel,noteNo.l8 100.00 

Wm. M.Stuart,  note  No. 76 140.00 

B,  H.  Davis,  note  No.  103 : 70.  oO 

A.  Y.  Kellogg,  note  No.  219 311.40 

Marie  Brwcasky,  note  No.  82 2tK).  00 

Wm.  R.  Murphy,  note  No.  170 2.>0.  00 

Jno.  Craig  &.So*n,  note  No.  172 200.00 

McBrideBros..  note  No.  249 2,051.21 

Fees.    AV\R.Murphy,  note  No.  170 2.05 

Fees.    Jno,  Craig  &  Son,  note  No.  172 2, 05 

J,  F.  Portuondo,  collections 356. 50 

Leon  Isaacs  &  Co.,  collections 174.  SO 

City  treasurer,  Drexel  &  Co 262. 50 

City  treasurer,  J.  Bardsley,  treas 178.  GG 

Do 10,000.00 

C.  E.  Roney,  treaa.,  J.  Bardsley,  treas 9.  4:5 

Jno.  F,  Hillman,  J,  Bardsley,  treas 14. 00 

Cath.  Madden,  J.  Bardsley,  treas 83. 00 

H.W.Gray,  lYeas.,  J.  Bardsley,  treas 23.46 

Wm.  Godfrey,  city  treas 3;{8. 58 

Jas-Lilley 31.50 

56, 096.  59 

Schedule  W. — Quarter  ending  Sept.  30,  1891.     Claims  established  not  on  the  books  of 

the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $258.24 


I 


1 


1 


394 


INVESTIGATION   OP   NATIONAL   BANKS. 


Exhibit  19. 


Report  of  (he  condition  of  the  Keystone  National  Bank,  Philadelplda,  in  the  hands  of 

receiver,  for  the  quarter  ending  Dec.  31,  1S91. 

ASSETS. 


TotAl. 

Gooil. 

Doubtful. 

Worthless. 

Assets  at  date  of  suHpension,  viz : 

Bills  receivable  (schedule  with  first  report) . 
Other  assets  (schedule  with  first  report) . . . 
Bxcess  of  bonds  over  circulation 

$811,662.51 

909,  848. 90 

5, 000. 00 

$294,  ;J80. 4;') 

276, 22a.  57 

5,  000.  00 

$372,651.29 
624,341.19 

$144,  m).  77 
9, 282. 14 

i 

Total  assets  at  date  of  susjiension  — 
Additional  assets  corning  into  possession 

of  receiver  since  suspension  (schedule  A) . 
Premium,  interest,  rent,  etc.,  received  since 

Busneusion  (schedule  B) 

1,726,511.41 

616,465.87 

2, 725. 26 

575, 606. 02 

48, 830. 31 

2, 725. 26 

996, 992. 48 
567,  635. 56 

153,912.91 

Total  assets  at  this  date 

2,345,702.54         627,161.59 

1.;j64.«2X.04       153.5M2.91 

DEPOSITION  OF  ASSETS. 

Amount  collected  by  receiver  to  date: 

From  bills  receiA'able  (s<'liedule  C) 

68, 116. 12 

77, 829. 19 

112, 384. 32 

1, 336. 52 

54, 508. 43 

74, 022. 09 

38, 701. 36 

1,336.52 

12, 507. 69 

3. 207. 10 

73, 622. 96 

l.KM).  00 

From  other  assets  on  hantl  at  date  of  sus- 
itenRiou  /H<'lie«lule  D)  ..   ... 

From  other  assets  acquired  since  suspen- 
sion (schedule  E) 

..••••••.••• 

From  premium,  interest,  rents,  etc,  (sched- 
ule F)  

Total  amount  collected  by  receiver  . . 
Offsets  allowed  and  settled  on  uills  receiv- 
able (schedule  G) 

259, 666. 15 

20,063.42 
34, 388. 75 

4,  300. 00 
888.76 

719, 182. 97 

809, 393. 80 

694, 190. 26 

3, 628. 43 

169, 228. 40 

20, 063. 42 
34, 157. 15 

89, 337.  75 

1,1(H>.00 

On  other  assets  (schedule  G) 

231.60 

4, 300. 00 
190.31 

355.  843.  60 

* 

Losses   on    promissory   notes  and  other 
assets  compounded  or  sold  by  order  of 
court : 

On  bills  receivable  (schedule  H) 

On  other  assets  (schedule  H) 

582.42 
219, 808. 60 
179, 515. 51 

177.66 
3, 628. 43 

116.03 

Assets  on  hand  at  date  of  this  report: 

Bills  receivable  (schedule  J) 

lis  .'•:«(!  77 

Other   assets  at  date  of  suspension 
(schedule  X) 

i 

62i)  712. 18  1        fl  ifu;  11 

Other  asset*  acquired  since  since  sus- 
pension (schedule  L) 

494. 012. 60 

Amount    collected    by  Comptroller  from 
premium,  interest,  etc.  (schedule  M) 



Total 

2, 345, 702. 54 

627, 161.50     1  -'WU  r.oft  (U  i     l.Vl  «19  Q1 

' 

COLLECTIONS. 

Amount  collected  by  receiver: 

From  good  assets $169,228.40 

From  doubtful  assets 89, 337. 75 

From  worthless  assets 1 ,  100. 00 

Suspense  account 4, 517. 88 

From  assessment  of  100  per  cent 
on  sto<klu)lders,  $73, 622.  96  (See 

sche<lule  E) , 

Difference  between  cash  and  col- 
lections    15. 54 

Amount  collected  by  Coi  n  ptrol  ler  3, 628. 43 


Total  collections 267, 828. 00 


DISPOSITION  OF  COLLEmONS. 

Amount  of  cash  returned  to  dejKwi- 

tors  V $1,114.82 

Loans  paid,  and  other  di.sburse- 

ments  (schedule  O) 2, 657. 16 

Claims    paid   by    Comptroller's 

checks 2, 968.  30 

Legal  expense  paid  (schedule  P)  1. 877. 57 

Receiver  s  salary  paid  to  date. .  2.  :{20.  00 

All  other  expense  (schedule  11)  13, 1 18. 31 

Balance  in  liands  of  Comptroller       242, 592. 84 
Balance  in  hands  of  recei\er  a« 

per  statement  of  receipts  and 

disbursement  s 1, 179. 00 


Disbursements 
ances  


and    bal- 


207, 828. 00 


INVESTIGATION   OF   NATIONAL  BANKS. 

Report  of  the  condition  of  the  Keystone  National  Bank,  etc. — Continued. 

LIABILITIES. 


395 


At  date  of  suspension : 

Collections  since  3, 20,  '91' $12, 544. 75 

Individual    deposits     (schedule 

with  first  report) 1.  300, 513. 07 

Deposits  made  3,  20,  '91 29,  559. 46 

Corrections  in  accounts  since  3, 

20, '91 19,026.21 

Certificates  of  deposit  (schedule 

with  first  report) 7, 971 .  91 

Due  to  national  banks  (schediUe 

with  first  report 10,573.47 

Claims  in  dispute 926,748.18 

Due  to  other  oanks  and  bankers 

(schedule  with  first  report) ....         3, 170. 02 

334, 286.  60 

Dividends  unpaid 6,120.00 

Dne  bills  outstanding 43,701.51 

Total 2,694,215.18 


At  date  of  report : 

Claims    provecl,    for   liabilities 

shown  by  the  books $523, 088.  .'>9 

Claims  in  dispute  (schedule  S)        926.  748. 18 
Liabilities  not  proved,  as  shown 

by  the  books  (schedule  T) ....     1, 187. 867. 82 
Liabilities  canceled  by  oftset  and 

otherwise  (schedule  U) 56. 510. 59 

Total  as  per  contra 2,  C94. 215. 18 

Claims  proved  as  above 253, 088.  TtQ 

Claims  established,  not  on  the 
books  (schedule  W) 2, 349.  35 

Total  claims  proved 525. 437.  94 


RoBEirr  M.  Yakdi.ky, 

Heceiver. 


Statement  of  receipts  and  disbursements  hy  the  receiver  of  the  Keyfttone  Naihnial  Bank 
of  Philadelphia,  Pa.,  dvnng  the  quarter  ending  Dec.  SI,  1S91. 


Keceipts. 

Amount. 

Disbursements. 

Amount. 

From  bills  receivable,  as  shown  by 
schexlule  C. 

From  other  assets,  as  shown  by  sched- 
ule D. 

From  other  assets,  as  shown  by  sched- 
ule E. 

F)-oni  premium,  interest,  etc.,  as  shown 
by  schedule  F. 

From  shareholders,  as  shown  by  sched- 
ule N,  included  in  E. 

$1, 677. 95 

8, 259. 18 

21, 257. 08 

865.71 

Loans  paid,  and  other  disbursements, 

as  shown  by  schedule  (). 
Legal  expenses  i>aid,  as  shown  by 

schedule  P. 
TJwieivpr!*  salarv  uaid  to  date. ....... 

.$414. 00 

1,260.61 

900.00 
2. 946. 42 

26. 000. 0(1 

All  other  expenses,   as    shown    by 

schedule  R. 
Remittances  to  Comptroller 

Total  disbursements, during  the 
quarter. 
Balance  in  hands  of  receiver 

Total  accounted  for 

31,521.03 

Total  receipts  during  the  quarter 
Balance  on  hand  at  date  of  last  report 

32,059.92 
640.11 

1.179.00 

Total  to  be  accounted  for 

32, 700. 03 

32.  700.  03 

Schedule  A. — Quarter  ending  Dec.  31, 1891.     Additional  assets  coming  into  possession  of 
the  receiver,  since  suspension,  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Date. 


1891. 
Oct.    16 

31 
Dec.   30 


Description  of  assets. 


Amount  at  date  of  last  report... 


Good. 


..    $47,848.23 


Received  by  mail  from  "(Conscience,"  .said  to  be  amount  overdrawn  ; 

for  two  years,  $100  and  interest,  $12 j  112 

Chas.  R.  and  Laura  R.  Colwell,  balance  of  judgment 510. 08 

W.F. Murphy's  sons,  dividend  on  stock  paid  in  error,  refunded  ...|  3(50 


Spring  Garden  Nat.  Bank,  Philada.,  clearing  house  due  bill, 2, 16,  '88.' 
do  do  do  do         dft.  on  Chase  Nat.  Bank,  N.  Y. 

2,16, '88 

William  Trenholm,  overdraft 


Doubtful. 


$510,850.02 


25,000 

25. 000 
6,  784. 94 


48, 830, 31 


5*^7, 635. 56 


i    I 


.+  -fj. 


<    ■       W" 


;ss» 


i 


t 


396 


INVESTIGATION  OF   NATIONAL  BANKS. 


SCHKPULK  H.—Qvarta-  ending  Dec.  SI,  1891,  premium,  interest,  rent,  etc.,  received  by 
the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa,,  since  suspension. 


Date. 


1891. 

Oct.    20 

24 

Nov.  20 


Dec. 


- 


1 
1 
1 

5 
5 
9 

10 

10 
12 
12 
12 
12 
12 
12 
12 
12 
12 

12 

12 
12 

5 
5 

9 

10 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 


Deo.  18 

18 
18 
18 
18 
18 
18 
18 
18 
18 
18 
18 
22 
22 

80 
80 


■rV 


From  what  source  collected. 


Amount  at  date  of  last  report 

Interest  on  stock  a88e8sni«>ut : 

B.  CJohle 

Jno.  P.  Logan * ... 

Interest  on  nuniUer  272,  D.  L.  Dre.v  demand  loan ..*..!........! 

Interest  on  I^  S.  bondw : 

$50,(K)0  to  Sept.l.  '91,  held  by  Treasurer  to  secure  circulation 

$50, 000  to  Dec.  1,  '91.  held  hy  Treasurer  to  secure  circulation  at  2  per  tent. 

Interest  on  depo.sit.s  in  Keal  Estate  Trust  Co 

Interest  on  sto<'k  assessment : 

W.R.  Warner  &  Co 

Mrs,  Sallie  Wai-ncr !.!.!!!  I !!..'.".!].'." ! 

Jacob  Myers • V.'.'.V/ ".'.'. .V.'.'.'.'.'.V. .'.'..'. . 

Interest  on  other  as.sets.  H.  .\skin,  account  ov^erdraft !.....!!!!..!!!!..!! 

Interest  on  stock  asscHsmeut ; 

Rebecca  A.  Walker 

Daniel  Weaver 

Jno.  B.Welsh .".'.*.".".'.*.".*'.'.'.".".'.''.'.'.'.*.".'..'".'..'.".' .\ 

Jno.  Robinson 

C.  MeClune -".'.'.'.'.'.'."!*.".''.".*.'.'.'."'.'."."*.'.'.".'.'.'.".'; 

A.M.Moore 

w\?'f^^n-*' "li. !!;"-!!!!". :::::::::::::::::::; 

W.M.dilhan 

B.C.Burns .'..'.".'.'.'.'..".*.'..'.''."."*."."".'.'..".'".!.*.'.!! 

A.D.Dawaa 


Amount. 


$1, 043. 62 

4.66 

7.70 

27.50 

568.68 

247. 25 

37.66 

95.00 
5.70 

47. 50 
2. 25 


...I 


Emma  Downs 

W.F.Gockler '."'. 

Henry  A.  Horneckle 

Costs  on  stock  assessment: 

W.R.  Warner  &  Co 

Mrs.  Sallie  Warner ' 

Jacob  Myers 

Rebecca  A.  Walker !J!.!'!* 

Daniel  Weaver 

John  B.Welsh '..'.'.'.'. 

John  Robinson \', 

C.  McCune !!,!!!!! 

A.  M.  Moore 

B.S.Maekie 

W.M.Gillian 

B.C.Beems .',',,',, 

A,  D.  Downs 

EmmaDowns 

w.F.Gockier ! ".!!!!!!!!!!;! 

H.  A.  Homickle 

Fees  on  No.  22,  John  J.  Carberry,  ilue  Dec.  3^  '90."."."! 

Interest  on  stock  as.sessment.  fi.  W.  Gans 

Cost  on  stock  asses.sment,  E.  W.  (ians 

Interest  on  stock  as.sessnu'nt.  Josluia  R.Jones 

Costs  on  stock  assessment,  Joshua  R.Jones 

Interest  on  stock  ass«ssment,  Harriet  A.  Kudiman. 
Costs  on  stock  assessment,  Harriet  A.  Rudimau  ... 

Interest  on  sto<k  assessment,  Jno.  Greenwell 

Costs  on  stock  assesment,  Jno.  (ireen  well 

Interest  on  stock  assessment,  Jo.seph  Gregson 

Costs  on  stock  assessment,  Josejih  Gregson 

Interest  on  stock  assessment,  Geo.  W.  Sliirley '. 

Costs  on  stock  assessment,  Geo.  W.  Shirley 

Interest  on  stock  a.ssessment,  E.  O.  D.  Webb 

Costs  on  stock  assessment,  E.  O.  D.  Webb ! . , 

Interest  on  overdraft: 

M.  B.  Wanamaker 

Jno.  Wanamaker,  person^  account 


1.95 

12.  02 

9.  50 

9.50 

4.88 

29.00 

90 

2.00 

10.00 

19.00 

4.75 

4.79 

6.00 

6.40 

6.40 

6.40 

6.40 

6.40 

11.90 

6.40 

6.40 

6.40 

6.40 

6,40 

6.40 

6.40 

'  6.40 

6.40 

6.40 

2.65 

8.19 

6.40 

15.  00 

6.40 

6.20 

6.40 

20.00 

6.40 

25.00 

6.40 

12.00 

6.40 

33.25 

0,40 

234.18 
15.88 


2,  725. 26 


INVESTIGATION   OF   NATIONAL   BANKS. 


397 


Schedule  C. — Quartei-  ending  Dec.  31,  1891,  collections  hy  the  receiver  of  the  Keystone 
National  Bank  of  Philadelphia,  Pa.,  from  hills  receivable. 


Date. 

No. 

1891. 

"^ 

Oct.    15 

239 

29 

168 

31 

207 

21 

110 

Nov.    2 

266  1 

20 

272 

Dec.  12 

162 

12 

22 

12 

23 

22 

266 

Maker  of  note. 


Amount  at  date  of  last  report 

Bonner  <fe  Eisler 

Morris  Spackman 

W.  Y.  Warner 

W.D.  Troupe 

M.  Landaiier 

D.L.  Drew 

T.  W.  Manship 

John  J.  Carberry 

James  N.  Elliott 

M.  Landauer 


When 
due. 


1891. 
July  8 
May  26 
June  12 
May  12 
Demand 
Demand 
May  23 

1890. 
Dec.     3 
Dec.     5 
Demand 


Good. 


$53, 555. 48 


Doubtful.    Worthless. 


$11,782.69 
25.00 


$1, 100. 00 


100.00  i 


75.00 


600.00 
30.00 


124.72 
23.23 


500.00 

100.00 

! 

! 

54,508.43 


100.00 


12,  507.  69 


1, 100. 00 


SCHEDUI>E  D. — Quarter  ending  Dec.  31,  1891,  collections  from  "other  assets,'^  on  hand  at 
dute  of  suspension,  hy  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Date. 


1891. 
Nov.    9 


Dec. 


4 

10 
30 
30 


Description  of  assets. 


Good. 


Amount  at  date  of  last  report '  $69,334.50 

J.W.Catharine,  overdrafts \  23.25 

H.J.  &  G.R.  Crump,  overdrafts,  on  ac.  of ; 

Harry  Askin,  overdrafts,  onac j 

M.  B.  Wanamaker,  overdrafts |      4, 929. 98 

Jolrn  Wanamaker,  personal,  overdrafts ! 


Doubtful. 


$235.51 


2,921.59 
50.00 


334. 36 


Worthless. 


74, 622. 09 


3,207.10  I. 


Schedule  E. — Quarter  ending  Dec.  31,  1891,  collections  of  "other  assets,''  acquired  since 
suspension,  by  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Date. 

Description  of  assets. 

Good. 

Doubtful. 

Worthless. 

18Q1 

A innnTif  at,  daie  of  1a>it.  Tftnort ... .. ... .... 

$37,  779.  28 
112.00 
510. 08 
360.00 

$53,  :H7.  96 

Oet,      1 6 

"  Conscience  "  overdratt  2  years  $100  and  interest$12. . 

Chas.  II.  and  Laura  R.  Colwell  balance  of  judgment 

W.  F.  Murphy  Sons,  dividends  on  stock  refunded 

Stock  assessments  as  per  Schedule  N  fi»r  quarter  end- 
inj?  12  31  '91            

31 

Dap.     iV) 

1 

30 

20.  275. 00 

38,  761.  36 

73,  622.  96 

Schedule  F. — Quarter  ending  Dec.  31,  1891.     Premium,  interest,  rent,  etc.,  collected  by 
the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $470.81 

1891.      Interest  on  stock  assessment: 

Oct.     20.          B.Goble 4.G6 

24.         Jno.P.Logan 7.70 

Nov.  20.  Interest  on  No.  272,  D.  L.  Drew,  demand  loan 27.  .""O 

Dec.     1.  Interest  on  deposits  in  Real  Estate  Trust  Co 37.66 

Interest  on  stock  assessment: 

5.         W.R.  Warner  &  Co 95.(0 

5.         Mrs.Sallie  Warner .'  5.70 

9.         Jacob  Myers 47.  50 

10.  Interest  on  other  assets,  H.  Askin,  on  ac.  overdraft 2. 25 

Interest  on  stock  assessment : 

10.  Rebecca  A.  Walker 1.95 

12.          Daniel  Weaver 12.02 

11.  Jno.  B.Welch 9.50 

12.  J  no.  Robinson 9. 50 

IS.          C.McCune 4.88 

VL         A.  M.Moore 29.00 

12.         B.S.Mackie » 


%\ 


398 


1891. 
D«c.  12. 
12. 
12. 
12. 
12. 
12. 

5. 

5. 

9. 
10. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
12. 
18. 


18. 
18. 
18. 
18. 
18. 
18. 
22. 
22. 
30. 


*      INVESTIGATION   OF   NATIONAL   BANKS. 

Schedule  F. — Quarter  ending  Dec.  SI,  ISBly  etc. — Continued. 

W.M.GlUian $2.00 

B.C.Burns 10.00 

A.  D.  Downs 19.00 

Enimn  Downs 4.75 

W.F.  (loekW 4.79 

H.  A.Homickie 5.00 

Cost  on  stock  asseHsnicnt : 

W.  R.  Warner  &  Co 8.40 

Mrs.  Sallie  Warnor 6.40 

Jacob  Myers 6.40 

Rebecca  A.Walker 6.40 

Daniel  Weaver 6. 40 

Jno.  B.Welsh 11.90 

Jno.  Robinson 6.40 

C.McCuue 6.40 

A.M.Moore 6.40 

B.S.  Mackie 6.40 

W.M.Gillian 6.40 

B.C.  Burns 6.40 

A.  D.  Downs 6.40 

Emma  Downs 6.40 

W.  F.Goekler 6.40 

H.  A.  Ihmiicke 6. 40 

Protest  fees  on  No.  22,  John  J .  Carberry,  due  Dec.  3, 18<K) 2. 05 

Interest  on  stot^k  assessnH-nt,  E.  M.  Gans 8. 19 

Costs  on  stock  a«.Me>»8U)cnt,  E.  M.  (Jans 6. 40 

Interest  on  stock  ii.ssesswent,  Joshua  R.  Jones 1J>.  00 

Costs  on  stock  assessuK'nt.  J«>Mliua  K.  Jones 6.  40 

Interest  on  stock  iiHsi-Hsmrnt.  IlaiTiet  A .  Hudimau 6.  20 

Costs  on  stock  assi'ssTucnt,  Harriet  A.  Rudiman 6. 40 

Interest  on  8t4>ck  assessmeut.  John  Green  well 20.00 

Costs  on  stock  iiHsessmeut,  John  Greenwell 6.40 

Interest  on  stock  asseHsuicnt,  Joseph  Greyson 25.00 

Costs  on  .stm-k  assi-ssracnt,  Joseph  GreysOn 6.40 

Interest  on  stock  assessment,  Geo.  W.  Shirley V2.W 

Costs  on  stock  assessment,  Geo.  W.  Shirley 6. 40 

Interest  on  stock  assesameut,  E.  O.  D.  Webb 33.  *_'."» 

Costs  on  stock  assessment,  E.  O.  D.  Webb 6. 40 

Interest  on  overdrafts — 

M.  B.  Wanamaker 234.18 

Jno.  Wanamaker,  personal 15.88 


1, 336. 52 


Schedule   G. — Quarter  ending  Dec.  .?!,  1891,  offsets  allowed  and  netthd  by  the  receiver 

of  the  Keyntone  National  Bank  of  Philadelphia.  Fa. 


To  whoni  allowed,  and  character  of  indebtedness. 


Good.      :  Doubtful. 


On  bills  receivable,  as  per  last  report 
On  other  assets,  as  per  last  rejwrt 


.    ^20, 0(53.42    

.!     34,157.15  ;         $231.  U) 


W^orthless. 


Schedule  H. — Quarter  ending  Dec.  SI,  1891,  loss  on  jmrmissory  notes  and  other  assets 
compounded  or  sold  by  order  of  court,  reported  by  the  receiver  of  the  Keystone  Xational 
Bank  of  Philadelphia,  Pa. 


Kame  of  debtor,  and  character  of  indebtedness. 


J.  M.  Battersby  numl)er  269,  balance  of  demand  loans,  Yardley, 

Receiver,  vs.  Battersby ;  verdict  for  defendant 

On  other  assets,  as  per  last  leport 


Good. 


$582. 42 


Doubtful.  I  "Worthless. 


$4, 300.  00 
190.31 


$116.  03 


Schedule  J. — Quarter  ending  Dec  31,  1891,  bills  receivable  in  the  hands  of  the  receiver 

of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Maker. 


Collected  incase  as  per  Schedule  C. 
Offsets  allowed  as  per  Schedule  G. . 

Losses  as  per  Scheaule  H 

On  hand  at  this  date 


Total  at  date  of  suspension. 


Good. 


Doubtfnl. 


54,  508. 48  ;  $12, 507. 6ii 

20,063.42    , 

4,300.00 
355, 843. 60 


219,808.60 


294,360.45 


372,65L29 


"Worthless. 
$1,100 


I4i,530.77 


144,630.77 


INVESTIGATION   OF   NATIONAL   BANKS. 


399 


Schedule  K.—Qiiarter  ending  Dec.  SI,  1891.    Assets,  other  than  bills  receivable,  in  the 
hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Description  of  assets. 


Balance  on  hand  as  per  last  report  . 
Less  collections  to  date,  schedule  D 


Good. 


Doubtftd.     Worthless. 


$148, 803. 10 
5, 287. 59 


$623,683.77  I      $9,166.11 


179, 515. 51 


2, 971. 59 


620, 712. 18  1        9, 166. 11 


Schedule  h.^Quarter  ending  Dec.  SI,  1891.     Other  assets,  acquired  since  suspension,  in 
the  hands  of  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Description  of  assets. 


Fred  C.  Geepil,  additional  overdraft 

Overdrafts,  connection  of  former  statement 

Check,  J.  A.  Kealing,  3, 21,  '90,  Wilkesbarre 

Nat.  Bank  of  Commerce,  Boston 

H  arrisburg  1st  Nat.  Bank 

Media  1  st  Nat.  Bank 

Washington,  Crane,  Parris  &  Co 

Stock  assessment  uncollected 

Spring  Garden  Nat.  Bank,  Philada.,  clearing-house  due  bill,  2, 16, 
'gg  

Spring  Garden  Nat."  Bank,  Piiiia.,  N.  Y.  dft.  Chase  N.  Bk,  2, 10,  '88 
■\V illiam  Trenholm,  overdraft 


Good. 


$1.00 


Doubtful.    Worthless. 


$10,810.62 
40.00 


426,377.04 

25, 000.  00 

25,  (100.  00 

6,  784.  94 


1 


Schedule  "M.— Quarter  ending  December  31,  1891.  Premium,  interest,  etc.,  collected  by 
Comptroller  of  the  Currency  for  account  of  the  Keystone  National  Bank  of  Philadel- 
phia, Pa. 

A  mount  as  per  last  report •^•AW"; $2, 812. 50 

Final  instalment  of  interest  to  Sept.  1,  '91,  inclusive,  on  $50,000  U.  S.  bonds  to  secure  circula- 
tion            068.68 

Interest  on  $60,000  U.  S.  bonds  to  Dec'r.  1, '91,  at  2  per  cent ^^'^-  ^ 

3, 628. 43 

Schedule  Hf.— Quarter  ending  Dec.  31,  1891,  amount  of  assessment  paid  by  stockholders 

of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Oct.  20.  BrookfieldGoble,  20  shares,  balance **^^ 

24.  John  P.  Lo<5an,  25  shares y-;* 

5.  Wm.  R.  Warner  &  Co.,  100  shares J.^JS 

5.  Mrs.  Sallie  Warner,  6  shares ^ 

9.  Clement  McCune,5  shares r?|! 

9.  Jacob  Myers,  50  shares - -^ 

10.  Rebecca  A.  Walker,  2  shares ^ 

12.  Daniel  Weaver,  13  shares ^ 

12.  John  B.Welsh,  10 shares ^ 

12.  John  Robinson,  10  shares 9"* 

12.  A. M.Moore.  30  shares i'^^*' 

12.  B.  S.Mackie.  1  share -^l 

12.  Wm.  McGillian.  2  shares i^^! 

12.  Beiy.  C.  Burns.  10  shares ,  fj^ 

12.  A.  D.  Downs,  20  shares ^-^ 

12.  Emma  Downo,  5  shares Xkn 

12.  W.  F.  Gockler,  5  shares .^D" 

12.  Henry  A.  Horuickle,  5  shares j^^ 

18.  E.M.  Gans.  8  shares *^ 

18.  Joshua  R.  Jones,  15  shares '  ^ 

18.  Harriet  A.  Rudiman,  6  shares f^ 

18.  John  Green  well,  20  shares I'J'l'" 

Dec.    18.  Joseph  Grifr.son,25  shares '  £»« 

18.  George  W.  Shirley,  12  shares ,  ^" 

22.  E.  O.D.Webb,  26  shares ^' -^ 

20,275 


i^i 


iV 


.  r" 


^■-  \  \: 


;!■'■'  ■ 

';■*   '■ 

\''; 

'  t'- 

J"':- 


'i. ''■'?• 


400  INVESTIGATION   OF    NATIONAL    BANKS. 

Schedule  O. — Quarter  ending  Dec.  31,  1891,  loans  paid  and  other   disbursemenis   by 
the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1891. 

Amount  as  per  last  report |2, 248. 16 

Dec.  15.  Jno.  W.  Boughton,  judgment,  Boughton  vr  Yardley,  verdict  for  plaintiff 414. 00 

2,657.16 

Schedule  P. — Quarter  ending  Dec.  31,  1S91,  legal  expenses  paid  by  the  receiver  of  the 

Keystone  National  Bank  of  Philadelphia,  Pa. 

1891.       Amount  as  per  last  report $616. 96 

Nov.     24.  Bedle,  Muirnead,  Mcdee  &  Bedle,  jr.,  professional  services  Yardly  v».  Yard,  and 

Spring  Lake,  etc.,  Co 500. 00 

30.  Wm.  Wnartou  Smith,  86  affidavits,  stock  assessment  suits 43. 00 

30,  Sani'l  Bell,  clerk  C.  C.  U.  S.,  costs  suits  »#.  stockholders 21«.  00 

Deo.       4.  "Wm.  R.  Leeds,  U.  S.  marshal,  costs  suits  vs.  stockholders 327. 90 

4.  Brailey,  Guilbert  &.  Haas,  stenographers,  preparing  bill  vt.  Yard  <fe  Sea  Girt  & 

Spring  Lake  Co 9.00 

15.  Costs  Boughton  v«.  Yardley 46.31 

26.  Jas.  B.  Nixon,  esq.,  fee,  Yanlley  v».  Maloney 100. 00 

Oct.       31.  E.  W.  Keeler,  4  affidavits,  $2.00,  cab  hire,  books  to  C.  C.  P.  No.  2,  $1.00,  do.  $2.00,  do. 

$5.00 10.00 

Dec.      31  H.  S.  Merflt,  12  affidavit* 6.00 

31.  Wm.  Wharton  Smith,^. /a.;  costs  advanced 2.40 

1,877.57 

Schedule  R. — Quarter  ending  Dec.  31,  1891.    All  other  expenses  paid  by  the  receiver  of 

the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1891.     Amount  as  per  last  report $10, 1 71 .  89 

Oct.    31.  Wm. C.Ryan, asst. receiver,  salary  for  October 150.00 

31.  John  G.  Deviue,  cishier,  salary  for  October .-..  125.00 

31.  Lillie  Bums,  stenographer,  salary  for  October 32.00 

31.  Petty  cash  per  Wm.  C.  Ryan— stationery,  40ct8. ;  stationery,  .38  cts.;  janitor  ar- 
ranging books,  50  cts.;  postage,  $1.00;  Mary   Foster,  washing  towels,  ^.10; 

telegram,  37  cts 5.75 

31.  EstateofThos.  H.  Anocker,  fixing  locks  and  keys 4.05 

Nov.    30.  Wm.  C.  Ryan,  asst.  receiver,  salaiy  for  November 150.  (H) 

30.  John  C.  Devine,  cashier,  salary  for  November 125.00 

30.  Lillie  Bams,  stenographer,  salary  for  November 32.00 

30.  Petty  cash  per  Wm.  C.  Ryan— telg.,  $1.29;  postage,  $2.00;  postage  and  reg.,25 

cts. ;  telg.,  37  cts.,  33  cts.,  49  cts. ;  letter  files,  $1.20 ;  soap,  20  cts. ;  w  ashing  tow- 
els, $2.70;  telg8.,47ct8..  25  cts 9.55 

Dec.    11.  Wm.  Weightman,  rent  of  bank  building,  1326  Chestnut  st.,  for  month  of  May, 

1891 2,(K)0.(H» 

31.  Wm.  C.  Ryan.  asst.  receiver,  salary  for  December 150.  Oil 

31.  John  C.  Devine,  cashier,  salary  for  December 125.  00 

31.  Lillie  Burns,  stenographer,  salary  for  December 32. 00 

31.  Petty  cash  per  W.C.Ryan,  typewriter  ribbon,  $2.00;  fixing  niacli.,  50  cts.;  i>os- 

tage,  $1.00;  washing  towels,  $2.40 ;  messenger,  17  cts 6.07 

13,118.31 

Schedule  S.— Quarter  ending  December  31, 1891.     Claims  in  dispute  against  the  Key^done 

National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $926,748. 18 

Schedule  \].— Quarter  ending  December  31,  1891.     LiabilitieH  canceled  by  offset  and 
otherunse  by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1891.    Amount  at  date  of  last  report ^^  ()96.  .')0 

Dec.  15.  Jno.  W. Boughton,  judgment '.'.'.'.'.'.'.'.'.'.'.'.'..         '414. 0() 

56,  510. 59 

Schedule  Y.— Quarter  ending  Dec.  31,  1891.     Contingent  liabilities  discharged  by  the 
receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report ^.^ $1,114.8 


INVESTIGATION   OF   NATIONAL   BANKS.  401 

Schedule  W. — Quarter  ending  Dec,  31, 1891.    Claims  establislied  not  on  the  books  of  the 

Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $258.24 

Number  852.  Jno.  R.  Read,  att'y,  account  rendered  for  professional  services 2, 017. 00 

875.  Patience  Michuer,  Cert,  of  Dep.,  Number  2121 $70.  00 

Int.,  3  per  cent  from  4, 5, 89  to  3, 20, 91 4.11 

74. 11 

2,349.35 

Exhibit  20. 

Be^art  of  the  condition  of  the  Keystone  National  Bank  of  Philadelphia,  Pa.,  in  the  hands 

of  receiver,  for  the  quarter  ending  Mar.  31,  1892. 

ASSETS. 


■II. 

I 


#1 


Assets  at  date  of  suspension,  viz : 

Bills  receivable  (schedule  with  first  report) . 
Other  assets  (schedule  with  first  report) .  - . 
Excess  of  bonds  over  circulation 


Total  assets  at  date  of  suspension  . . 
Additional  assets  coming  into  possession 

of  receiver  since  suspension  (Schedule  A.) 
Premium,   interest,    rent,    etc.,    received 

since  suspen  sion  ( Schedule  B) 


Total  assets  at  this  date 


DISPOSITION  OF  ASSETS. 

Amount  collected  by  receiver  to  date : 

From  bills  receivable  (Schedule  C) 

From  other  assets  on  hand  at  date  of  sus- 
pension (Schedule  D) 

From  other  assets  acquired  since  suspen- 
sion (Schedule  E) 

From  premium,  interest,  rents,  etc.,  (Sched- 
ule F) 


Total  amount  collected  by  receiver  . . 
Offsets  allowed  and  settled  on  bills  receiv- 
able (Schedule  G) 

On  other  assets  (Schedule  G) 

Losses  on  promissory  notes  and  other  assets 
compounded  or  sold  by  order  of  court: 

On  bills  receivable  (Schedule  H) 

On  other  assets  (Schedule  H) , 

Assets  on  hand  at  date  of  this  report : 

Bills  receivable  (Schedule  J) 

Other  assets  at  date  of  suspension  (Sched- 
ule K)  

Other  as.sets  acquired    since    suspension 

(Schedule  L) 

Amount  collected  by  Comptroller  from  pre- 
mium, interest,  etc.  (Schedule  M) 


Total 


Total. 


$811, 602. 51 

909,848.90 

5, 000. 00 


l,726,5n.41 

616, 687. 27 

3, 490. 86 


2, 346, 689. 54 


70, 606. 12 

78, 204.  55 

132,705.72 

1, 852. 12 


283, 368.  51 

20, 063. 42 
68,478.52 


9, 010. 00 
888.76 

711, 982. 97 

774, 928. 67 

474, 090. 26 

3,878.43 


2, 346, 689. 54 


Good. 


$294,  380. 45 

276. 225. 57 

5,  000. 00 


575, 606. 02 

49, 051. 71 

3, 490. 86 


628. 148. 59 


54,758.43 

74,622.09 

38, 982.  76 

1, 852. 12 


170, 215. 40 

20, 063. 42 
34, 158. 40 


150.00 
582.  42 

219, 408. 60 

179, 514. 26 

177.66 

3, 878. 43 


Doubtful. 


$372, 651.  29 
624, 341. 19 


996, 992.  48 
567,  635. 56 


1, 564. 628. 04 


Worthless. 


$144,  630. 77 
9, 282. 14 


153, 912. 91 


153, 912. 91 


14,  747.  69 

3,582.46 

93,  722.  96 


1, 100. 00 


112,053.11 

34,326.12' 

8,  860. 00 
190.31 

349, 043.  60 

586, 248.  30 

473,912.60 


1, 100. 00 


628,148.59     1,564,628.04 


116. 03 

143,  530.  77 

9, 166. 11 


153,912.91 


COLLECTIONS. 


Amount  collected  by  receiver: 

From  good  assets $170,21Jfc.40 


From  doubtful  assets 

From  worthless  assets 

Suspense  account 

From  assessment  of  100  per  cent 
on  stockholders,  $93,723.96 
(see  Schedule  E). 

Difference  between  cash  and  col- 
lections  

Amount  collected  by  Comp- 
troller   


Total  collections 


112, 053. 11 
1, 100. 00 
4,517.88 


15.54 

3,878.43 

291,780.36 


DISPOSITION  OP  COLLECTIONS. 

Amount  of  cash  returned  to  deposi- 
tors V $1,114.82 

Loans  paid    and  other  disburse- 
ments (Schedule  O) 

Claims     paid     by    Comptroller's 

Legal  expenses  paid  (Schedule  P) 

Receiver  s  salary  paid  to  date 

All  other  expenses  (Schedult;  li) . . 

Balance  in  hands  of  ('oiui)troller  . 

Balance  in  hands  of  rec«'iver  as 

per  statement  of    receii)ts  and 

disbursements 


3, 167. 02 

6, 309.  79 

2,510.32 

3.  220.  01) 

!.'».  :!45.20 

259,501.35 


611,86 


Di-sbursements  and  balances.     291,780.36 


3792 26 


j?fe 


!       I 


■    I  . 

1;. 


u 


402 


INVESTIGATION  OF   NATIONAL   BANKS. 


INVESTIGATION  OF   NATIONAL   BANKS. 


403 


M 


'i 


i 


i: 


i.' 


Report  of  the  condition  of  the  Keystone  National  Bank  of  Philadelphia,  Pa.,  etc, — Cout'd. 

LIABILITIES. 


At  date  of  suspension : 

Collections  since  3, 20,  '91 $12, 544. 75 

Individual    deposits    (schedule 

with  first  report) 1, 300, 513. 07 

Deposits  made  3, 20,  '91 29,  559. 48 

Correction  in  acts,  since  3, 20, 91 .  19, 026. 21 
Certificates  of  deposit  (Hche<lule 

with  first  report) 7, 971. 91 

Due  to  national  banks  (schedule 

with  first  report) 10, 573. 47 

Claims  in  dispute 1,026,748.18 

Due  to  other  oanks  and  bankers 

(scliednle  with  first  re|)(»rt) ...  3, 170. 02 

Due  clearing-house  association. .  334, 286. 60 

Dividends  unpaid 6,120,00 

Due  bills  outstanding 43, 701. 51 

Total 2,794,215.18 


At  date  of  report : 

Claims    proved,    for   liabilities, 

shown  by  the  lM)oks $538,  30.1. 1 1 

Claims  in  dispute  (iScheilule  S)  . .  1, 026,  748. 18 
Liabilities  not  proved,  as  shown 

by  the  books  (Schedule  T) 1, 137, 316.  57 

Liaoilities  canceled  by  ottset  and 

otherwise  (Schedule  U) 91, 847. 32 

Total  as  per  contra 2, 794. 215. 18 

Claims  proved  as  above 538, 303. 11 

Claims   established,  not  on  the 
books  (Schedule  W) 10, 384. 18 

Total  claims  proved 548,  687. 29 


ROBEBT  M.  YABDLKY, 

ReeHver. 


SCHKDULE  A. — Quarter  ending  March  31,  1892.  Additional  assets  coming  into  posses- 
sion of  the  receiver  since  suspension  of  the  Keystone  Xational  Bank  of  PhHadvh)hia, 
Pa.  ^  I       y 


Description  of  assets. 


Amount  at  date  of  la.sl  report 

Check  Central  Tru.st  Co.,  olfset  June  30,  '91,  cash  ret'd 


Good. 


Doubtful. 


$48. 8.30.  31     $.567.  635. 50 
221.40    


49,051.71       567.63.5.50 


SCHK 


•:i>Ui.E  B — .Quarter  ending  Mar.  31, 1892,  premium,  interest,  rent,  etc,  received  hy 
receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa.,  since  suspension. 


the 


Date. 


1892. 

Jan'y  9 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 
11 

Feb'v  4 
10 
18 

Feb.  27 
27 

Mar.    2 

5 

5 

5 

10 

26 

31 


From  what  source  collected. 


Amount. 


Amount  at  date  of  last  rtiport 

Interest  on  other  as.sets,  H.  A  skin  ace.  overdrafts 
Interest  on  .stoek  a8.sessinentK,  Kachel  A.  Brown  . 

Costs  on  stock  a.s8es.sment»,  Rachel. A.  Brown 

Interest  on  .stock  as.se.Hsinents,  Wui.  droves,  est .. 

Costs  <»n  st«K'k  a.Hses8uu>nt8,  NVni.  (}r(»ve.s,  est 

Interest  on  stock  assessments,  Wm.  (rrove8,jr 


$2, 


Costs  on  stock  as.se.ssnieuts,  Wni.  Gn»ves,  ir ! 

Interest  on  stock  assessments,  Geo.  K.  I>ahi8 1 

Costs  «m  stock  assessments,  Geo.  E.  Dahis ■ 

Interest  on  stock  assessments,  J.  M  iUer „ [ 

Costs  on  stock  assessments,  J .  Miller .' i 

Fees  on  Number  246.  J .  L.  Craniner,  due  .1  uly  17,  "91  i 

Interest  on  Numlwr  246,,!.  L.  Cramner,  due  .luly  17, '91 i 

Interest  on  stock  a88es.sments,  Edward  11.  Hopkins,  ex'r 

(vosts  on  stock  assessments,  Edwai"d  H .  Hopkins,  «'x'r 

Interest  on  stock  assessments,  Wm.  M.  Mullen , 

Costs  <m  stock  a-Hsessments,  Wm.  M.  ^lullen i 

Interests  on  other  assets,  K.  C.  Merriman.  ace  ov«!rdraft '. 

Interests  on  other  assets,  H.  Askin  ac<'.  overdraft I 

Interest  on  No.  267,  C.  Hoar,  demand  loan  to  .March  22,  "92 ' 

Interest  on  sto<!k  assessment,  W.  W  hiteside,  de4;'d ' 

Costs  on  stock  assessment I 

Interest  on  U.  S.  bonds  $.'.0,000  to  March  1,  '92  at  2  per  cent,  ht^ld  by  Trensurer  U.  I 

S.  to  .secure  circulation '. I 

Interest  on  stock  a^-sesHUient  W'm.  H.  Brooks 

(Josts  <m  stock  assessment  Wm.  H.  Brooks , 

Interest  on  other  a.sset8  K.  C.  Merriman.  account  overdrafts , 

"      H.  Askin,  account  overdrafts 

'•        "  stock  assessnjcnt  W.  U.  Pennell 

"        •'  other  assets  E.  C.  Merriman,  account  overdraft 


725. 26 
2.45 

20. 25 
6.40 

31.00 
4.  «H) 

21.33 
6.40 

11.63 
8.80 
2.51 
H.  «i| 
2.05 

12.5.-, 
0. 1-5 
(».  40 
8.51 
8.  S.I 

4.  *Ml 
3.  «;o 

4."..  00 

13  2lt 

6.40 

250.00 

07.  (Ml 

13.  80 

3.  88 

3.  (>0 

175. 00 

5.  25 


3, 490. 86 


Schedule  C. — Quarter  ending  Mar.  31, 1892.    Collections  hy  the  receiver  of  the  Keystone 
National  Bank  of  Philadelphia,  Pa.,  from  Mils  receivable. 


Dat«. 

No. 

1892. 

Jan'y  11 

246 

11 

261 

28 

266 

Feb'y  3 

205 

10 

24 

10 

30 

10 

44 

10 

47 

10 

59 

15 

266 

Har.  22 

130 

Maker  of  note. 


Amount  at  date  of  last  report 


"WTien 
due. 


1891. 
July  17 
May  19 
Demand. 
Jan'y  12 
Dec.  7, 90 


J.  L.  Crammer 

C.  A.  Meloney 

M.  Landaner 

H.W.Kelscy 

Jas.  L.  Allan 

Jas.  L.Allan iDec.30,90 

Jas.  L.Allan Jan.  30, 91 

D.J.Thompson Feb.  10, 91 

Jas. L.Allan Mar.  7,91 

266  !  M.  Landaner Demand. 

Feb.  2, 91 


Good. 


$54,  508. 43 


Doubtful. 


250.00  I. 


$12, 507. 69 

500.00 
100.00 
1.50. 00 


"Worthless. 


$1,100 


.1 


Milton  C.  Greiner 


400.00 
280.  00 
210. 00 
30.00 
70.00  I 
350.00  I 
1.50.  00 


54, 758. 43       14, 747. 69 


1,100 


Schedule  D. — Quarter  ending  Mar.  SI,  1892.     Collections  from  ''other  assets'^  on  hand 
at  date  of  suspension,  hy  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 


Date. 


1802. 

Jan.     9 

Feb.     4 

10 

Mar.    5 

10 

31 


Description  of  assets. 


Amount  at  date  of  last  report 

Harry  Askin,  on  account  overdraft 

E.  C.  Merriman, 

Harry  Askin, 

E.  C.  Merriman, 

Harry  Askin, 

E.C.  Merriman, 


II 
it 

«4 


II 


Total 


Good. 


$74,  622. 09 


Doubtful. 


$3,  207. 10 
50.00 
75. 12 
50.00 
75. 12 
5t».00 
75.12 


74, 622.  09 


3, 582. 46 


Schedule  E. — Quarter  ending  Mar.  SI,  1892.    Collections  of  ''other  assets,''^  acqui 
since  suspension,  hy  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa 


red 


Description  of  assets. 

Good. 

Doubtful. 

Amount  at  date  of  last  report 

$38, 761. 36 

$73.  622.  96 
20  1(N)  00 

Stock  assessments  as  per  S<^hedule  N,  for  q narter  ending  Mar.  31,  '91 

Central  Savings  Fund  H.  S.  D.  &  Co.,  check  paid  offset  refunded 

221.40 

38,  982.  76         93,  722.  96 

Statement  of  receipts  and  disbursements  by  the  receiver  of  the  Keystone  National  Bank,  of 
Philadelphia,  Pa.,  during  the  quarter  ending  March  31,  1892. 


Beceipts. 


From  bills  receivable,  as  shown  by 
Schedule  C 

From  other  assets,  as  shown  by  Sched- 
ule D 

From  other  assets,  as  shown  by  Sched- 
ule E 

From  premium, interest,  etc.,  as  shown 
by  Schedule  F 

.From  shareholders,  as  shown  by 
Schedule  N,  included  in  Sched.  E. 


Amount. 


$2, 490. 00 
375.36 

20, 321. 40 
515.60 


.1. . 
1 


Total  receipts  duruig  the  quar-  ! 

ter 

Balance  on  hand  at  date  of  last  report. 

Total  to  be  accounted  for 


23, 702.  36 
1, 179. 00 


Disbursements. 


Loans  paid,  and  other  disbursement!?, 
as  shown  bv  Schedule  O 


Legal  expenses  paid,  as  shown  by 
Schedule  P 


Receiver's  salary  paid  to  date 

All  #ther   expen.se8,  as  shown    by 

Schedule  R .".. 

Remittances  to  Comptroller 


Amount. 


Total  disbursements  during  the  j 

quarter \ 

balance  in  hands  of  receiver 


24, 881. 36 


$509.86 

632.75 
900.00 

2,  226.  SO 
20,  000.  00 


24,  269.  50 
611.86 


Total  accounted  for. 


24, 881. 36 


■■■,  V  L 


H\ 


^-F 


n 


.■''■■  *,. 


404  INVESTIGATION  OF  NATIONAL  BANKS. 

« 

Schedule  F.— Quarter  ending  March  SI,  1892.    Pretkium,  interest,  rent,  etc.,  collected 
by  the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 

1892.        Amount  at  date  of  last  report gi  y-jg  co 

Jan'y     9.  Interest  on  other  assets,  H.  A  skin,  ac.  overdraft '.-'.*.'.'.*.'.*.'.''.'.*.'.".'.  '  '2  45 

9.  Interest  "  stock  assessment,  Kachel  A.  Brown 915  *>«; 

9.  Costs       •'     "           "              "       •'       "    fi2J; 

9.  Interest   "      •'             "           Wm.  Groves' est '.'"**'!*.'.'! ncu) 

9.  Costs        "     "            *•              "         "        •'                                         Atk 

9.  Interest  "     "            "          Wm.  Groves, jr. '.'.!". "."/.'.*■."..'.*.*.'■.■.'.'.■  ■.■'.;'. 21  r! 

9.  Costs         "      ••             ««               •«           »•                                               i'l.ti.i 

9.  Interest   "      "             "           Geo. KDavis  ..■.*.*.***'.'.'.'.'."'.■.'.'!.*;.■.*; uKi 

9.  Costs         "      ••             "             "    "        •'     fl-^. 

9.  Interest   "      "             •'           J.Miller '..'.'. o'S 

9.   Costs         •«      ••             *«           14      .•                                                   Q 

9.  Fees         "  No.  246,  J.  S.Cranmer,  dneJuiy'n.'isM .'!.'!. '!."!. '!.'!.'!.' 9,^ 

9.  Interest   "         "           "           '♦         "        "         "      ;;; .^  V)? 

9.         •'         "  stock  assessment  Edward  F.  Hopkins,  exr !*!!*!! roI 

9.   Costs          ••       "              "                    "         "           "           "                                Jfn 

9.  Interest   "      "            "           Wm-McMuUen V.V.V.V.'. I'Xl. 

9.   Costs         "      "             •'             "      "        "              .                              *  Q 

Feb'y    4.  Interest   "  other  assets,  B.C.  Merriman,ac.  overdraft*."Iiri"*I JS2 

10.          "         ••      "         "      H.Askin a  XX 

18.          ••         "  No.  267,  C.  Hau,  demand  loan  to  March  22, '92 '.*.*.'. ill 45  oo 

37.          "         "  stock  assessment,  AViu.  Whitesides, dead 1V90 

27.  Costs        ••      "            "              "            "              •♦     g  7^ 

March  6.  Interest  on  stock  assessment,  Wm.  H.  Brooks rt"^ 

6.  Costs      "     ♦•          "             "            ••       ■.■"'.■.■.". laSS 

5.  Interest  "   other  assets,  E.  C.  Merriman  ac.  ovenlraft qa« 

10.          "        ••        "         "       H.Askin                     "        •'    ....             oJX 

26.          ••        •'   stock  assessment,  W.  H.  Vennell '.'.'.'.'.[ 17^'^ 

3L         ••       "  Other  assets.  E.C.  Merriman,  ac.  overdraft r.!!".!.'i'.!."!!  5:25 

1,852.12 

Schedule  G.— Quarter  ending  Mar.  SI,  1892.     Offsets  allowed  and  settled  by  the  receiver 

of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 


To  whom  allowed  and  character  of  indebtness. 


On  bills  receivable,  as  per  last  report 


On  other  assets,  as  per  last  report 

John  Bardsley,  overdraft,  by  John  Bardllpy,  special 

Bank  of  Batavia,  N.  Y.,  by  First  National  Bank  of  Batavia. 


Good. 


$20,  063, 42 


34, 157. 15 
i.'25 


Doubtful. 


<!23l.fi<» 
34, 088.  52 


34,158.40 


34, 320. 12 


SCHEDULE  H.— Quarter  ending  March  21,  1892.  Loss  on  promissory  notes  and  othir  as- 
sets compounded  or  sold  by  order  of  court,  reported  by  the  receiver  of  the  Keystone  National 
Bankf  of  Philadelphia,  Pa. 


No. 


55 
24 
80 
44 
47 
59 
139 
130 


Name  of  debtor,  and  character  of  indebtedness. 


On  promissory  notes,  as  per  last  report 

Thos.  W.  Dickson,  due  Feb.  21,  '91,  Yardley  r#.  Dickson, 

verdict  for  defendant 

Jas.  L.  Allan,  due  12,  7,  '90,  decree  C.  C.  XT.  S.,  Sept.  i,  'oi, 

80  per  cent  loss 

Jas.  L.  Allan,  due  12,  30,  '90,  decree  C.  C.  U.  S.,  Sept.  1,'  '91* 

80  per  cent  loss 

Jas.  L.  Allan,  due  1,  30,  '91,  decree  C.  C.  V.  S.,  Sept.  1,  'W, 

80  per  cent  loss 

D.  J.  Thompson,  due  2,  10,  '91,  decree  C.  C.  U.  S.,  Sept.  1,' 

'91,  80  per  cent  loss 

Jas.  L.  Allan,  due,  3,  7,  '91,  decree  C.  C.  U.  S.,  Sept.  1,  'oi, 

80  per  cent  loss 

F.  M.  Freeburg,  due  11,  9,  '90,  Yardley  v*.  Mitchell"  ver- 
dict for  d  ft  

Melvin  C.  Greiner,  due  2,  2,  '91,  Yardley  v».  Mitchell,  ver* 

diet  for  dft.,  proportion 


Good. 


$150.00 


Doubtful. 


Worthless. 


$4, 300. 00 


On  other  assets,  as  per  last  report 


1,600.00 
1, 120. 00 
840.00 
120.00 
280.00 
419.50 
180.50 


150.00 
582. 42 


8,  mi  00 

190.31 


116.03 


INVESTIGATION  OP  NATIONAL   BANKS. 


405 


Schedule  J. — Quarter  ending  March  SI,  1892.     Bills  receivable  in  the  hands  of  the 
receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 


Maker. 


Collected  in  cash,  as  per  schedule  C 

Offsets  allowed,  as  per  schedule  G 

Losses  allowed,  as  per  schedule  H 

On  hand  at  this  date 

Total  on  hand  at  date  of  suspension 


Good. 


$54, 758. 43 

20,063.42 

150.00 

219, 408. 60 


Doubtful. 


$14,747.69 


8, 860. 00 


Worthless. 


$1, 100. 00 


294,  380.  45 


349,043,60  :     143,530.77 


372, 651. 29       144, 030.  77 


Schedule  K.— Quarter  ending  March  31, 1892.     Assets,  other  than  hills  receivable,  in  th 
hands  of  the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 


Description  of  assets. 

Good. 

Doubtful. 

Worthless. 

Balance  on  hand,  as  per  last  report 

$179,515.51 

$620, 712. 18 
375.36 

$9,166.11 

Less  collections  to  date,  as  per  schedule  D 

Less  offsets,  as  per  schedule  G 

179. 515. 51 
1.25 

620, 336. 82 
34, 088.  52 

9,166.11 

Balance  on  hand  this  date 

179,  514. 26 

586,  248.  30 

9, 166. 11 

Schedule  L. — Quartei'  ending  March  31,  1892.     Other  assets  acquired  since  suspension  in 
the  hands  of  the  receiver  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 


Description  of  assets. 


Fred  C.  Geipel,  additional  overdraft 

Overdrafts,  corrections  of  former  statements 

Check,  J.  A.  Keating,  3,  21,  '90,  Wilkesbarre 

Nat.  Bank  of  Commerce,  Boston 

Harrisburg,  1st  Nat.  Bank 

Media  Ist  Nat.  Bank 

Washington,  Crane,  Parris  &  Co 

Stock  assessments  uncollected 

Spring  Garden  Nat.  Bank,  Philad  a  Cleariug-House  due  bill,  2, 

Spring  Garden  Nat.  Bank,Philad'a,  N.  Y.  Dft.  Chase  Nat.  Bk.,  2, 

16,  188. 
William  Trenholm,  overdraft , 


Good. 


Doubtful.     Worthless. 


$L00 


$10,810.62 
40.00 


3.54  |. 
56.75    . 

.27 ;. 

116. 10 


406,277.04 
25, 000. 00 

25,000.00 

6, 784. 94 


177.66     473,912.60 


Schedule  M^.— Quarter  ending  Mar.  SI,  1892.  Premium,  interest,  etc.,  collected  by  Comp- 
troller of  the  Currency  for  account  of  the  Keystone  National  Bank,  of  Philadelphia, 
Pa. 

1892.     Amount  as  per  last  report , $3,628.43 

Mar.  2.  Interest  on  $50,000  U.  S.  2  per  cent  bonds  to  March  1, '92 250.00 


Schedule  li.— Quarter  ending  Mar.  SI,  1891.    Amount  of  assessment  paid  by 
holders  of  the  Keystone  National  Bank,  of  Philadelphia,  Pa. 

Jany.    5.  Granville  B,  Haines claims  only  991  shares  on  account 

11.  Rachel  A.  Krown 25               " 

11,  Wm,  Groves,  Esq 30               " 

11.  Wm.  Groves,  jr 20               " 

11.  George  E.  Dahis 10 

U.J.  Miller 2 

11.  Edward  F.  Hopkins,  exr 6 

11.  Wm.  M.  Mullen 7 

Feby.  27.  Wm.  Whiteside,  dec'd 11 

27.  Theo.  Steel 5 

Mar.     5.  Wm.  H,Book8 40 

22.  Mary  A.  B.  Smith 50 

26.  W.  H.  Pennell 100 

26.  Theo.  Steel 6 


3.  878. 43 
stock' 


It 


It 


«« 


I* 


$5,000 

1,250 

1,500 

1,000 

5(>0 

100 

250 

350 

550 

50 

2,00(1 

2,500 

5,000 

50 

''n 


'  m 


m 


i  i 


ao,iM 


406 


INVESTIGATION  OF   NATIONAL   BANKS. 


Schedule  0.— Quarter  ending  March  Sly  189i.    Loams  paid  and  oihei'  disbursements  hy 
the  receiver  of  the  Keystane  National  Bank  of  Philadelphia^  Pa. 

1892.      Amount  as  per  last  report ^'f^'a« 

Jan'y    8.  Joseph  U.  Ooxe, collection  made  since  susi^nsion 509.8b 

3, 167. 02 

Schedule  F.^Quarter  ending  March  Sty  1892.    Legal  expenses  paid  hy  the  receiver  of 

the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1802.     Amount  as  per  last  report u.*-v, ^\Vi:"V«  "i"  ^^'^'^'^-^'^ 

Jan'y  8.  Allen,  Lane  &  Scott,  printing  paper  books,  Boughton  vi.  Yardley,  and  Mntual  Bank- 

ing  Co.  r#.  Yardley *;-?^ 

11.  James  B.  Nixon,  fee  retained,  Yardley  t>».  Maloney ^'kn 

Feb'y23.  Olark  J.  Wood,  witness  fees,  McNutt  vs.  Bank oo- n^ 

29.  Bead  &.  Pettit,  disbursements,  costs  of  suits  as  per  bill t,'IS 

March  9.  Frederick  Parker,  esq.,  disbursements,  costs  of  suits •  50. 00 

25,  Wm.  V.  Williamson,  clerk,  court  of  appeals,  printing  record  in  Nos.  13  and  14,  March 

term,  Yardley  r«.  Cloitine o«'2n 

n.  JohnB.  Read,  esq.,  disbursements,  costs  of  suits 9o.70 

2,510.32 

Schedule  R.— Quarter  ending  March  SI,  1892.    All  other  expenses  paid  hy  the  receiver  of 

the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1892.      Amount  as  per  last  report ^^"^'Ha^ 

Jany .  4.  Albert  R.  Barrett,  services  and  expenses  for  NovernVr,  1891 159. 00 

8.  Albert  R.  Barrett,  services  and  expenses  for  December,  1891 I'l. 95 

11.  Interest  to  E.  O.  D.  Webb  ch argecl  bor  in  excess  and  returned  to  her ,  en"  ^ 

80.  Wm.  C.  Ryan,  asst.  to  receiver,  salary  for  January JSO.  00 

30.  John  ( : .  Divine,  ca.shier  and  bookkeeper,  salary  for  January 125. 00 

30.  Lillie  Burns,  stenographer  and  typewriter,  salary  for  January 32. 00 

30.  Petty  cash,  pir  Wm.  C.  Ryan:  Sam'l  Bell,  clerk  C.  C.  U.  S.,  affid.,  $6.50;  janitor, 

$5 1  postage  and  reg,  32 eta.;  box  for  books,  $2.50;  Bell,  aft'd.,  $2;  receipt  l)ook, 

75cts 1'-"* 

Feby .  12.  Albert  R.  Barrett,  services  and  expenses  for  January ^  ^^"  ^ 

19.  Geo.H.  Wood,  services  and  expenses  for  January !^"'i 

19.  Arthur  P.  Stewart,  services  and  expenses  for  January ?} " 

29.  Wm.  C.  Ryan,  asst.  receiver,  salary  for  February 150. 00 

29.  John  G.  Div ine,  cashier  and  lKK)kkeeper,  salary  for  February 125. 00 

29.  Lillie  Bums,  stenographer  and  tvpewrit^'r,  salary  for  February 32. 00 

29.  Pettycash,  per  Wm.C.  Ryan;  Mary  Foster,  wa.shiug towels, $3;  ^ doz. penholders, 

40ct8  ;  notary  fee,  $2 5.40 

March  4.  Albert  R.  Barrett,  services  and  expenses  for  February 1 4b.  03 

4.  Geo.  H.Wood              "                     ' SJJ? 

4.  Arthur  P.  Stewart,     "                    "          "          "        J.^.lo 

8.  Arthur  P.  Stewart,     "                     "           "    toMarch n.50 

25.  O.  G.  Hempstead  &  Son,  expenses  and  services  exporting  and  selling  26  casks 

wine,  collateral  held  by  Keystone  N.  Bk ^^'  66 

31.  W.  C.  Ryan,  asst.  receiver,  salary  for  March IpO.  00 

31.  John  G.  Divine,  cashier  and  boofekeep«'r,  salary  for  March 12.^.  00 

31.  Lillie  Bums,  stenographer  and  typowrit^^r,  salary  to  March  21 22. 00 

81.  Petty  cash,  per  Wm.  C.  Ryan:  E'.  W.  Keler,  affidavit  to  statements,  $3;  soap,  30 

cts. ;  Mary  Foster,  washing  towels ;  teleg.  from  Comptroller,  Gl  cts 6. 91 

Schedule  S.— Quarter  ending  Mar.  31,  1892.     Claims  in  dispute  against  the  Keystone 

National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report $926, 748. 18 

Magill,  assignee,  etc..  of  John  Bardsley,  v.  Keystone  National  Bank;  suit  for  $100,000 
w<»rth  of  HaUiniore  traction  bonds,  alleged  to  be  the  property  of  John  Bardsley ;  given 
by  the  bank  to  the  clearing  house  as  collateral  for  daily  balance 100, 000. 00 

1,026,748.18 

Schedule  V.— Quarter  ending  Mar.  SI,  1892.    Liabilities  canceled  by  offset  and  otherwise 
by  the  receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

1892.     Amount  at  date  of  last  report $56,510.5 

Less  amount  recharged  to  individual  deposits: 

Central  S.F.&S.D.  Co.  to  H.HiUlebrand $240.00 

Do.  S.F.&S.D.CO 22L40 

46L40 

56, 049. 19 

Jany.  19.  Transient  collections  to  Washington  N.Bk.,N.Y 1,198.50 

8.  Jos.  H.Coxe,  collections  paid 509.86 

Feb.    12.  Jno.  Bardsley,  special  by  Juo.  Bardsley,  overd'f 't 34, 088. 52 

Jany.  29.  Ist  NatBankof  Batavia,by  Baiikof  Batavia --  L25 

9L  847. 32 


INVESTIGATION   OF   NATIONAL    BANKS. 


407 


Schedule  Y.— Quarter  ending  March  31, 1892.     Contingent  liabilities  dtncharged  by  the 
receiver  of  the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report ' $1,114.82 

Schedule  W.— Quarter  ending  Mar.  30,  1892.     Claims  established,  not  on  the  books  of 

the  Keystone  National  Bank  of  Philadelphia,  Pa. 

Amount  at  date  of  last  report - *"'     ^\>j 

952.  Samuel  Lucas  <fc  Co r : 2  50 

953.  Theo.  H.McCalla ^5^ 

954.  M.  W.  Phillips 35  qq 

95.').  F.  A.  Davis 15' qo 

9.'»G.  "  The  Financier" I'gg 

957.  Wyckoff,  Seamans  &  Benedict g'gi 

058.  Charles  B.  Reas'  Son  &  Co 741*37 

959.  Magee  Printing  House g  390  00 

975.  John  S.  McNutt 4' 828  35 

980.  "William  Weightman ' 

10, 384. 18 

Q  I  wiU  show  you  this  document,  and  you  can  state  what  it  is.— A. 
The  document  in  my  hand  is  a  verified  copy  of  a  letter  from  Receiver 
Yardley  under  date  September  30, 1891,  addressed  to  me,  ami  is  a  trial 
balance  of  the  stock  ledger  of  the  Keystone  National  Bank  as  it 
appeared  when  he  took  charge  of  the  assets  of  the  trust,  and  also  said 
trial  balance  mentioned  in  the  letter. 

(The  paper  was  put  in  evidence  and  marked  Jjixnibit  ^1.) 


■m 

r 
m 


I 


5, 


Exhibit  21. 

fG.  W.  Marsh,  president;  John  Hayes,  cashier;  Chas.  Lawrence  a«s't  cashier.    Keystone  National 
IVT.  ** .      •      ,f         g^^  ^226  and  1328  Chestnut  street,  opposite  L.  b.  Mint.] 

Philadelphia,  September  30th ^  1891. 

Hon.  E.  S.  Lacey,  „.    t  •     .        r.   r. 

Comptroller  of  the  Currency,  Washington,  V.  C.  : 

Sir-  I  beir  to  enclose  you  herewith,  as  requested,  atrial  balance  of  the  stock  ledger 
of  the  Keystone  National  Bank.  The  amounts  indicated,  however,  are  not  altogether 
reliable,  as  in  many  instances  the  accounts  in  the  ledger  are  incomplete. 

Yours,  respectfully,  ^      ^  ,,    -i^ 

'       ^  ^'  Per  Robert  M.  Yardlky, 

Receiver. 
R. 


Trial  balance— Stock  ledger  of  ths  Keystone  National  Bank,  PhUada. 


Shares. 

Arthur,  Robt 1^ 

Arthur,  Fannie  R ^\ 

Allan,  M.  P.,  Mrs m 

Anderson,  Jno.  W 1^ 

Agnew,  Erwin ^ 

Barr,Wm.J 5 

BellifcCo.,  Howard 10 

Bringhurst,  A.  T.,  Mrs 50 

Ba.stian,H.S 50 

Bradley,  W.B 1 

Brintzinghoffer,  C 6 

Beatty,  M.A 10 

Bender,  W.  A 12 

Bum8,B.C 10 

Brooks,  W.H 40 

Bodine,DeW 20 

Brown.  Jno.  A.  S 15 

Brown,  Geo 20 

Bucker,  Aug.  W 18 


Shai'es. 

Breneman,  B.  F 125 

Brown,  Rachel  A.,  Mrs 2.5 

Buck,  Danl 20 

Buchanan,  R.  R 10 

Canning,  Letitia 15 

Cassady,  Jno.  H 28 

Crump,  H.  J H 

Crump,  Jno 10 

Chapin,  Sarah  C 12 

Creth,  Jno.E 10 

Creth,  Caroline , 10 

Cooper,  D.  E.,  Mrs 2 

Crump,  Geo.  R 100 

Cox,Wm.P 15 

Chambers,  Mary  J.,  Mrs 10 

Cadbnry,  Rich'd  S 200 

Cann,  Lavinia  M 1 

Davis,  Mary  Ann 32 

Dreka,  Louis ^ 


■  \ 


^l.  J 


1 

1 

M. 

408 


INVESTIGATION  OF  NATIONAL   BANKS. 


Table  balance— Stock  ledger  of  the  Kejfitone  National  Bank,  Fhilad' a— Continued. 


Shares. 

Dolus,  Geo.E lo 

Downs,  A.  C 20 

Downs,  Emma 5 

Excelsior  Div.  Sons  of  Temperance  13 

Field,  Geo. F 90 

Gabell,jr.,G.T '.  4 

Goforth,  Mary  Ann 1 

Graham,  Sarah  C,  Mrs 15 

Green,  Henry  W 25 

Gans,E.M 8 

Greenwell,  Jno 20 

Garrett,  Walter [.[..  50 

Gregson,  Jos 25 

Groves,  Wm 50 

Goble,  B 20 

Gibbs,  Almira [.  10 

Haines,  Chas.  C 301 

Hamian,  Josephine  C 40 

Haines,  R.  A 14 

Howard,  Jas.  W 25 

Holbrook,  K.  M ]  12 

Hibbard,  Snsan  Y 36 

Hopkins,  Edward 5 

Holbrook,  Jno.  0 15 

Hoopes,  D.J 25 

Horinckel,  Henry  A 5 

Johnson,  Henry 125 

Jones,  J.  R 15 

Jackson,  J.  T 50 

Jarrett,  Benj.  S 10 

Jones,  Henry '....'.  10 

Jackson,W.S 100 

Kohlmus,  Jno 

Kohlmus,  Annie  h ... 

Kerst,  Henry 

Kerlin,I.N 

King,  Lilly  W 

Logan,  Jno.  P 

Lowry,  A.  A 

Logan,  Jane  Hibbard 

Long,  Benj.  C 

Long,  Wm.  V 

Lee,  Wm.  E 

Lambome,  Jos 

Leech,  jr.,  Wm.  H 


37 
44 
30 
12 

5 
25 

1 

2 
19 
52 

2 
10 

. .  20 

Logan,  Mary  P.,  Mrs 100 

4 

4 

5 

20 

20 

2 

2 

2 

200 

20 

75 


Lucas,  J.  Hunter 
Lucas,  Walter  Ray  . . 
Lucas,  Florence,  Miss 

Lucas,  Samuel 

Lucas,  M.  E.,  Mrs 

Lucas,  Ethel,  Miss  . . . 
Lucas,  Mildred,  Miss. 
Lucas,  Granvill  H  . . . 

Lester,  B.  G 

Mellock,  J.M 

McFadden,  Chas 


McFadden,  Ad^ie 625 

McBiirney,  David 

McBurney,E.  C 

McArthur,  D '....'..'. 

McBride  Bros 

McFadden,  Jos.  R 

McCausland,  Wm 

McClees,  Jas.  E.,  Trustee 

McGilliau,  Wm 

Mellick,  Emily  D.,  Mrs 


20 
7 
7 
5 
5 
12 
15 
2 
5 


Marsh,  G.W 

McMullen,W 

Morgan,  Jos 

Marsh,  Mrs.  Mary,  jr  . 

Massey,  T.  J 

Meloney,  Geo.  R 

Mackie,B.S 

Matthews,  C.  F.,  Mrs 
Miller,  C.  H 


Shares. 

50 

7 

10 

4 

20 

3 

1 
25 

62 

Miller,  C.  H lOO 

Miller,  J 2 

Moore,  A.  M 30 

Myers,  Jacob 50 

Moore,  John 2 

Morrison,  A.J 10 

Newton,  C.  C 10 

Norton,  Chas.  D 25 

Nichols,  D.  P.  S 120 

Omensetter,  Sanford 12 

Ober,  David  A .50 

Perot,  Jno  S 6 

Popper,  Carrie  C 32 

Penrose,  Emily 6 

Pennell,  Wm.*H 125 

Peel,  Jas.  G 5 

I  Paul,  Henry  S 13 

Regar,  Newton  K 11 

Roesch,  Chas 10 

Riehl,  Chas.  W , 100 

Ruddiman,  Harriet  A 6 

Richel,  A.  C 7 

Robinson,  Jno 10 

Steel,  Theo '. .  5 

Smith,  W.  B 10 

Swartley,  S.  S 15 

Shellouberger,  E.  A 12 

Shellenberger,  C.  N 104 

Shirley,  Geo.  W 12 

Sower,  J.  R 8 

[  Scarborough ,  W.  A 12 

Stokes,  Rieh'd .50 

Sideubaek  &  Enberg 12 

Smith,  Henrietta  M 43 

Smith,  Edward  F 15 

Stang,  Peter 50 

Staug,  George 100 

Shark,  Amelia 7 

Taylor&Co.,  L.  H 10 

Thomas,  Howard  V 10 

Torr,  Wm.  S 755 

Torr,  Chas.  C 26 

Tobiasoii,  Amelia  L 5 

Tobiason,  Abigail 5 

Weaver,  Daniel 1.3 

Walker,  Rebecca  A 2 

Warner  &  Co. ,  Wm.  R 1 00 

Wa iner,  Sallie,  Mrs 6 

Wilgus,  G.  S • 4 

Whiteside,  Wm 1 1 

Wheeler,  Mi tl in 15 

Webb,  E.  O,  D.,  Mrs 25 

Ware,  Hetty 10 

Yard,  H.  H \,  969 

Lucas,  Jno.  C 2,  2:^ 

Haines,  Granville  B 991 

10,270 


INVESTIGATION  OF   NATIONAL   BANKS. 


409 


Q.  You  have  testified  this  morning  that  Mr.  Gate,  a  member  of  this 
committee,  called  at  your  office  and  examined  the  correspondence  be- 
tween your  office  and  the  receiver  since  his  appointment?— A.  Yes,  sir. 

Q.  And  did  Mr.  Gate  make  selections  of  the  correspondence  which 
he  deemed  important?— A.  He  selected  certain  letters  of  which  he 
desired  certified  copies,  and  they  have  been  prepared  under  the  super- 
vision of  Mr.  Stoddard,  and  certified,  and  are  herewith  submitted. 

Q.  Are  these  two  packages  all  the  correspondence  referred  to? — A. 
These  are  the  letters  which  were  indicated  by  Mr.  Gate  and  certified 
to  by  his  direction. 

Q.  You  will  please  read  them. 

Mr.  Lacey  read  the  following  documents : 

Letter  dated  June  3,  1891,  addressed  to  Mr.  Lacey  by  Mr.  Drew, 
bank  examiner: 


ExmBiT  22. 


Philadelphia,  June  Sd,  1891. 


Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D,  C, : 

Dear  Sir  :  On  the  19th  day  of  March,  1891,  the  Keystone  National  Bank,  in  order 
to  meet  the  debt  aj^ainst  them  in  the  clearing  house  caused  by  the  exchanges  that 
morning,  went  to  the  Fourth  Street  National  Bank,  Philadelphia,  and  asked  them  to 
take  a  draft  for  $25,000  drawn  on  the  Tradesmen's  National  Bank  of  New  York,  one 
of  their  reserve  agents,  and  in  exchange  for  which  they  would  like  to  receive  certifi- 
cates, which  would  enable  them  to  meet  their  clearing-house  debt. 

The  entire  debt  that  morning,  amounting  to  some  $70,000,  was  provided  for,  I  think, 
by  the  Fourth  Street  National  Bank,  they  receiving  national-bank  notes,  and  the 
above-mentioned  New  York  draft,  in  exchange  for  which  they  handed  them  the 
certificates. 

Upon  the  20th  inst.,  by  your  instructions,  I  took  possession  of  the  Keystone  National 
Bank.  Their  sheet  that  morning  showed  a  balance  to  their  credit  in  the  Tradesmen's 
National  Bank,  New  York,  after  deducting  the  above-mentioned  $25,000  draft,  of 
$1,757.33.  The  Tradesmen's  National  Bank  notified  the  Fourth  Street  National  Bank 
by  teleph<me  that  this  draft  was  drawn  against  a  letter  containing  items  which  thev 
had  received  that  morning,  of  which  all  had  been  paid  with  the  exception  of  about 
$7,000,  which  was  an  item  drawn  by  Wanamaker  &  Brown,  of  Philadeli)hia,  which 
that  firm  had  received  credit  for  on  the  books  of  the  Keystone  National  Bank.  The 
amount  of  this  draft  has  since  been  made  good  to  the  Keystone  National  Bank. 

Having  been  asked  by  the  Fourth-Street  National  Bank  whether  this  draft  would 
not  take  priority  over  deposits,  in  view  of  the  fact  that  the  proceeds  went  to  reduce 
the  liabilities  of  the  Keystone  National  Bank  of  the  day  previous,  which  were  occa- 
sioned l>y  checks  drawn  upon,  and  which,  if  the  Keystone  National  Bank  had  not  suc- 
ceeded in  obtaining  certiticates  for,  would  have  remained  a  liability  against  the  bank, 
I  have  requested  them  to  lay  the  matter  before  you.  I  have  said  to  them,  unoffi- 
cially, that  if  it  were  possible  for  it  to  be  clearly  shown  to  you  that  the  depositors  of 
the  Keystone  National  Bank  were  benefited  directly  by  the  exchange  of  these  certifi- 
cates for  their  New  York  draft,  that  you  would  probably,  after  satisfying  yourself 
that  the  legal  points  were  fully  covered,  allow  the  receiver  to  reimburse  thein  out  of 
the  funds  now  in  possession  for  account  of  the  bank,  and  receive  from  the  Fourth 
Street  National  Bank  the  draft  which  the  Keystone  National  Bank  drew  on  the  19th 
of  March. 

Mr.  J.  S.  Singer  will  present  this  letter  to  you  with  his  credentials,  showing  his 
authority  to  represent  the  Fourth  Street  National  Bank,  and  I  commend  him  to  your 
kind  attention. 

Yours,  very  respectfully, 

W.  P.  Drkw, 
Nat.  Bank  Examiner. 


m 

4k 


I 


HI 


410 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


411 


* 


lietter  dated  Philadelphia,  Juiiel4,  1891,  addressed  to  Mr.  Laeey  by 
Mr.  H.  V.  Jones,  at  one  time  acting  assistant  bank  examiner  to  Mr.  Drew : 

Ex!:bibit  23. 

Phila.,  June  14,  '91» 

Hon.  E.  S.  Lacey, 

Comptroller  of  Currency : 

D.  Sir  :  I  desire  to  make  the  following  explanation  with  reference  to  my  testimony 
«»iven  before  the  councilmauic  investigating  committee  on  12tli  inst. : 
^  I  will  state  that  I  did  not  consult  Mr.  Drew,  as  I  should  have  done,  as  to  what  my 
statement  should  consist  of  and  was  taken  to  task  by  him  for  making  any  reference 
to  your  visit  on  Feb.  13.  It  was  not  my  intention  to  imply  that  you  had  set  a  value 
upon  any  of  the  assets  of  the  bank,  but  that  you  were  shown  the  sheet  of  the  bank 
on  which  the  Sea  Girt  property  was  carried  as  $700,000,^and  that  the  apparent  defi- 
cit was  $400,000. 

I  regret  very  much  that  the  matter  has  been  taken  up  by  the  papers  as  it  has,  and 

•im  ready  to  do  anything  in  my  power  to  rectify  it. 

Yours,  respectfully, 

'       ^  H.  C.  Jones. 

Letter  of  E.  S.  Lacey  to  H.  C.  Jones,  dated  June  17,  1891,  addressed 
care  of  Mr.  Drew : 

Exhibit  24. 

Treasury  Department, 
Office  Comptroller  of  the  ('iirrency, 

Wanh'mtjton,  1).  6'.,  June  17,  1S91. 

Mr.  H.  C.  Jones, 

Care  of  Mr,  W.  P.  Drew,  S989  Chestnut  Street,  Philadelphia,  Pa. : 

Sir:  I  am  in  receipt  of  your  favor  of  the  14th  instant,  and  note  its  contents. 
In  reply  I  beg  leave  to  say  that  your  whole  and  only  duty  when  appearing  bef<n'e 
the  committee  of  the  councils,  investigating  the  city  treasury,  was  to  tell  the  entire 
and  exact  truth,  without  fear  or  favor.     Your  testimony  as  reported  in  the  news- 
]»:ipers  was  full  of  errors. 

I  am  pleased  to  learn  that  it  was  not  your  intention  to  imi)ly  that  I  had  set  a  value 
upon  any  of  the  assets  of  the  bank.     I  certainly  did  not  do  so. 

I  notice  one  misstatement  also  in  the  letter  which  you  have  written  to  me,  for 
neither  on  the  ISth  of  February  nor  at  any  other  time  ]>rior  to  its  closing  was  I 
shown  any  statement  of  the  affairs  of  the  Keystone  National  Bank  which  exhibited 
an  apparent  deficit  of  $400,000. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 

Letter  from  Mr.  Yardley  received  June  20, 1891,  by  Mr.  Lacey,  dated 
Philadelpliia,  June  26,  18DI: 

Exhibit  25. 

Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency,  Washington,  D.  C: 

Sir:  The  following  deposits  were  made  in  the  Keystone  National  Hank  on  the 
morning  of  March  20th,  1891,  before  tlui  closing  of  its  doors : 

• 

J.  D.  Laws $292.50 

Benj.Seiser 50.  (X) 

Geo.  C.  Leupold 35.  (K) 

Mrs.  S.  B.  Freeman 100.63 

City  treasurer 28,762.54 

29, 240. 67 

The  deposits  of  J.  D.  Laws  consisted  of  two  checks,  $200,  and  $92.50,  respectively. 
The  second  check  was  returned,  payment  being  refused,  and  has  since  been  charged 
baek  and  returned  to  Mr.  Laws. 


The  other  check,  however,  was  collected  and  the  proceeds  have  been  remitted  in 
the  cash  sent  to  the  Treasurer  of  the  United  States. 
Claims  have  been  made  for  these  deposits  and  payment  in  full  is  asked. 
Hem.  Charles  F.  Warwick,  city  solicitor,  has  presented  the  claim  of  the  city  for  the 
amount  deposited  on  this  date  and  asks  that  repayment  be  made  as  early  as  x^i's^t^-ti- 
cable. 

I  respectfully  suggest  that  payment  be  made  to  Mr.  Warwick,  as  he  has  charge  of 
the  claim  and  represents  the  city  in  the  mattert 
Yours,  respectfiilly, 

Robert  M.  Yardley, 

Beceirer. 

Letter  from  Mr.  Lacey  to  Mr.  Yardley,  receiver  of  the  Keystone  Na- 
tional Bank,  dated  Phila.,  July  3, 1891. 

Exhibit  26. 

Treasury  Department, 
Office  of  Comptroller  of  the  Currency, 

Washington,  B.C., July  3, 1891. 

Hon.  Robert  M.  Yardley, 

Receiver  Keystone  National  Bank,  Philadelphia,  Pa. : 
Sir:  In  further  reference  to  the  subject-matter  of  letter  of  even  date  and  your 
communication  of  the  26tli  ultimo,  you  are  advised  that  if  Mr.  J.  D.  Laws  is  neither 
indebted  nor  liable  in  any  way  to  your  trust,  the  proceeds  of  his  check,  deposited  on 
the  morning  of  March  20th,  for  $92.50  should  be  returned  to  him  out  of  trust  funds  in 
your  hands,  and  that  if  Messrs.  Seiser,  Leupold,  and  Freeman  are  neither  indebted 
nor  liable  in  any  way  their  respective  deposits  may  be  promptly  returned. 

The  Comptroller  understands  that  the  deposits  made  on  the  morning  of  March  20th 
were  not  mingled  wdth  the  funds  of  the  bank,but  were  safely  kept  separate  for  the 
reason  that  the  bank  was  not  authorized  to  do  business. 
Very  respectfully, 

E.  S.  Lacey, 

Comptroller. 

Letter  from  George  S.  Horan,  addressed  to  E.  S.  Lacey,  dated  Phila- 
delphia, July  15, 1891: 

Exhibit  27. 

Philadelphia,  July  5th,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  the  Currency : 

Sir  :  By  the  advice  of  Mr.  John  Wanamaker  I  write  yon.  The  circumstances  in 
connection  with  my  deposit  in  the  Keystone  Bank  are  such  that  I  certainly  am  enti- 
tled to  receive  from  it  the  full  amount  due.  It  is  not  a  large  sum ;  but  the  loss  of  it 
at  this  time  is  causing  me  infinite  damage. 

Less  than  a  week  before  the  closing  of  the  bank  I  opened  the  account,  Marsh  him- 
self receiving  my  deposit  and  entering  it  in  my  pass  book.  Scarcely  had  1  commenced 
to  check  it  out  when  the  bank  closed  its  doors. 

Without  entering  into  matters  which  are  well  known  to  everyone  now,  I  may  say 
that  the  Government  should  not  allow  a  deposit  made  at  the  time  I  made  mine  to  be 
lost  to  the  depositor,  or  even  kept  out  of  his  possession,  when  it  was  known  to  you 
that  the  bank  was  not  in  a  fit  condition  to  receive  deposits,  mucli  less  open  accounts. 
A  careful  consideration  of  this  matter,  and  a  reply  at  your  earliest  convenience,  would 
much  oblige, 

Yours,  respectfully^ 

Geo.  S.  Horan. 


4 


;l 


U 


'A 


. 


412 


INVESTIGATION  OP   NATIONAL   BANKS. 


INVESTIGATION  OF   NATIONAL   BANKS. 


413 


Letter  from  E.  S.  Lacey  to  G.  S.  Horan,  dated  July  7,  1891: 

Exhibit  28. 

Treasury  Department  (K  2291), 
Office  of  Comptroller  of  the  Currency, 

Washington,  D,  C,  July  7, 189U 

Mr.  Geo.  S.  Horan,       „,.,,,  ^-     „ 

gOS8  MoClellan  «*.,  Phtladelphia,  Pa.: 
Sir:  Your  letter  of  the  5th  instant  is  received,  suggesting  that  you  are  entitled  to 
receive  from  the  Keystone  National  Bank,  now  in  the  hands  of  a  receiver,  the  full 
amount  of  a  deposit  to  your  credit  at  date  of  suspension.  ^  ^  ,  ,  i  ^  i 
^  reply,  vou  are  respectfully  informed  that  United  States  Statutes  a  »8olutely  pro- 
hiWt  a  preference  to  one  creditor  over  another,  and  that  the  Comptroller  l^as  no  au- 
thority to  discriminate  as  between  creditors  of  a  national  bank,  even  though  deposits 
were  made  on  the  day  preceding  suspension.  j,  -     a  ^     +1.^  «««^fo 

As  the  Comptroller  is  advised;  your  claim  would  not  be  sustained  by  the  courts. 
Very  respectfully,  ^    g   ^acey, 

Comptroller. 

Mr.  Lacey.  Under  date  Philadelphia,  August  13,  1891,  John  Blair 
Ma<?afee,  attorney  for  Granville  B.  Haines,  addressed  the  Ibllowmg  com- 
munication to  me.  (After  reading  part  of  the  conimunication.)  Ihe 
communication  now  takes  up  Mr.  Haines's  financial  situation,  and  as 
he  is  a  member  of  a  prominent  firm  in  Philadelphia,  I  will  read  it  or 
not.  as  the  chairman  sees  fit. 

The  Chairman.  You  may  read  it. 


ExmBrr  29. 


Philadelphia,  Aug.  13,  1891 


Hon.  E.  S.  Lacey,  ^   ^.    .       t^  ^ 

Comptroller  of  the  Currency^  Washington,  D,  C. ; 
My  Dear  Sir:  On  the  stock  books  of  the  Keystone  Bank  Mr.  Granville  B.  Haines 
is  registered  as  the  owner  of  991  shares  full  paid,  of  the  par  value  of  $50  each      S(>me 
time  subsequent  to  July  11th,  1891,  Mr.  Haines  received  a  notice  troin  the  Hon 
Robert  M.  Yardley,  receiver  of  the  aforesaid  Keystone  Nat'l  Bank,  advising  him  of 
the  fact  that  the  Comptroller  of  the  Currency  had  authorized  and  ordered  an  assess- 
ment of  100  per  cent  on  the  stock  of  the  said  bank.    The  amount  of  the  assessment 
therefore  that  Mr.  Haines  is  called  upon  to  pay  is  $49,550.     The  notice  gave  the  fur- 
ther information  that  unless  the  said  assessment  was  paid  on  or  betore  Aug.  lltu 
'91,  that  suit  would  be  brought  to  compel  the  payment,  and  also  that  interest  would 

be  computed  from  that  date.  ,.,,x        ^^  .  ^*^ 

In  this  connection  Mr.  Haines  and  myself  thought  it  advisable  to  call  upon  you  at 
vour  office  in  \Va8hingt«)n  and  relate  to  you  the  following  statement  ot  lact,  alter 
which  relation  we  asked  you  to  exercise  the  discretion  which  the  law  allows  you, 
and  direct  the  receiver  to  abstain  for  a  time,  the  length  of  which  to  be  hereafter 
airreed  upon,  from  bringing  suit  against  Mr.  Haines  to  enforce  \ho.  collection  of  the 
said  assessment.  In  order  that  you  may  have  the  matter,  with  its  a^ceomi|anying 
statement  of  facts,  properly  before  you  in  the  consideration  thereof,  I  herewith  pre- 
sent the  same  to  you  in  writing  for  the  purpose  that  the  paper  may  be  hied  in  the 
papers  in  the  trust,  and  thus  prevent  any  question  being  raised  in  the  tutiire  as  to 
the  propriety  of  the  action  which  we  hope  you  may  take  m  the  matter.  We  do  this 
willingly  and  freely,  knowing  as  we  do  that  the  communication  will  be  held,  as  it 
from  its  peculiar  nature  deserves,  confidential.  .  i  i       „ 

The  period  of  time  required,  however,  before  this  first  payment  can  be  made  we 
would  say  would  be  about  eighteen  months,  or  February  lvl?i*3.  During  this  time 
anv  dividend  that  might  be  declared  by  the  receiver,  in  which  Mr.  Haines  would 
have  an  interest  as  a  depositor,  could  be  credited  to  the  stock  assessm*int  account  ot 

This^may  seem  a  long  extension  of  time  to  ask.  Under  the  circumstances,  herein 
fullv  explained,  we  deem  it,  however,  a  reasonable  one.  By  such  extension  the  de- 
positors will  profit,  without  it  they  will  lose  anythiuff  that  might  come  from  him ;  we 
therefore  think  that  as  their  trustee  you  would  be  but  properly  exercising  the  dis- 
cretion which  the  law  reposes  in  you.  Certainly  no  disadvantage  can  result  to  any 
cestui  qui  trust. 


Let  me  add  that  there  are  no  other  suits  against  Mr.  Haines,  neither  are  there 
apt  to  be  any,  as  he  is  conscious  of  no  outstanding  obligations  other  than  those 
mentioned.  He  will  assuredly  incur  no  new  ones,  even  for  the  purpose  of  paying  off 
those  mentioned,  as  by  the  plan  outlined  he  proposes  paying  those  out  of  the  legiti- 
mate profits  of  his  business. 

In  conclusion,  permit  me  to  say  that  should  you  at  any  time  desire  to  consult  either 
Mr.  Haines  or  myself,  if  you  will  telegraph  eithes  one  or  the  other  of  us  we  will  come 
at  once  to  Washington.  We  have  endeavored  to  make  this  statement  as  clear  and 
distinct  as  possible,  and  trust  that  you  may  see  your  way  clear,  and  admit  the  advis- 
ability of  granting  the  extension  prayed  for. 
I  am,  my  dear  sir,  very  truly  yours, 

Jno.  Blair  Macafee, 
Attorney  for  Granville  B.  Haines. 

On  September  6, 1  replied  to  this  letter  of  John  Blair  Macafee,  but 
it  was  signed  by  Mr.  Nixon. 

Exhibit  30. 

Treasury  Department  (K  2291), 
Office  of  Comi^iroller  of  the  Currexct, 

Washington,  D.  C,  September  5,  1891, 
Mr.  John  Blair  Macafee, 

Attorney  at  Law,  Philadelphia,  Pa. : 

Sir  :  Your  letters  of  August  13  and  31,  in  behalf  of  Mr.  Granville  B.  Haines,  a 

shareholder  of  the  Keystone  National  Bank,  have  received  resijectful  consideration. 

It  is  possible  that  other  cases  may  arise  suggesting  compromise,  but  at  present  it 

is  impracticable  to  advise  the  receiver  and  his  counsel  to  entertain  propositions  which 

might  amount  to  exceptions. 

Very  respectfully, 

R.  M.  Nixon, 
Deputy  and  Acting  Comptroller. 

Q.  Mr.  Haines  was  connected  with  the  Keystone  National  BankT — 
A.  Mr.  Haines  was  the  largest  shareholder,  and  was  connected  with 
the  bank  for  many  years,  and  for  a  short  time  after  the  death  of  Mr. 
Lucas  was  president.  At  the  time  the  bank  closed  he  was  a  director 
and  a  large  shareholder. 

Q.  He  was  not  one  of  the  executive  officers  at  that  time! — A.  No, 
sir.  This  is  one  letter,  which  Mr.  Gate  selected  to  be  copied  in  relation 
to  the  matter.  Afterwards  it  was  taken  up,  and  the  receiver,  by  his 
attorney,  finally  concluded  to  not  bring  action  against  Haines  if  he 
would  make  a  present  payment;  and  my  information  is  that  he  paid 
$5,000  in  cash  and  that  suit  was  not  brought,  with  the  understanding 
that  he  would  make  further  payment  in  full  in  installments.  Mr.  Stod- 
dard reminds  me  that  those  payments  are  mentioned  in  the  papers 
which  have  been  read. 

The  next  communication  submitted  is  a  telegram  dated  Beaver, 
Pa.,  November  29,  addressed  to  the  Hon.  E.  S.  Lacey,  from  M.  S. 
Quay: 

Exhibit  31. 

[Telegram.] 

Beaver,  B.  Co.,  Pa.,  Nov.  S,  1891. 
Hon.  E.  S.  Lacey, 

Comptroller  of  Currency,   Washington,  D.  C. : 

I  am  informed  that  Francis  B.  Reeves,  an  expert,  appointed  by  Gov.  Pattison  to  ex- 
amine the  affairs  of  Keystone  Nat'l  Bank,  was  the  person  who  abstracted  and  caused 
or  permitted  to  be  copied  for  partisan  and  libelous  purposes  the  certificate  of  deposit 
heretofore  mentioned.  Will  you  have  the  kindness  to  interrogate  him  to-day  on  the 
subject! 

M.  S.  Quay, 


41 


^ '. 


414 


INVESTIGATION  OP  NAllONAL   BANKS. 


INVI  SriGATION   OF   NATIONAL   BANKS. 


1'' 

k 

h 
Ml' 


f 

i 


a^notkuoyv^  ^'^  *****  referl-A.  Of  my  own  personal  knowledge  I 

Q.  Somethiugis  said  in  it  about  what  was  "heretofore  mentioned.'' 
Was  there  any  consultation  between  Mr.  Quay  and  yourself  ?— A  I  had 
a  conversation  with  Senator  Quay  in  relation  to  it,  but  I  have  forgotten 
whether  it  was  before  or  after.    Possibly  it  was  before  '"'So^"*" 

Q.  State  what  the  subject  matter  was  that  that  letter  refers  to  — 
f^jLi^^  m<?n»ory  serves  me  it  was  in  connection  with  a  certificate' of 
deposit  amounting  to  between  18,000  and  $10,000.  1  have  tbrgottei 
anttw^^^  and,  never  haying  heard  anything  about  the  certificate  or 
any  statement  of  fact  about  it,  except  what  I  saw  in  the  newspapers  I 
could  not  state  anything  about  it.    This  certificate  was  issued!  tf  I 

bv"?he  KeviT^f  ^«^{  "'^^  ^°''  **  ^-  ^-  ^"^y-  *"d  was  afterwards'paid 

th^  n.f  J^^^    f  *i    *^''""^  '^PP*"*""^  *"'<'"e  the  vouchers  that  came  into 
tne  custody  of  the  receiver. 

Q.  Bearing  Mr.  Quay's  indorsement!— A.  I  understood  it  bore  Mr 

S  f^'^vT**^"^"*^    ^°  ^""'*'  *"*y  ^^^  certificate  of  deposit  was  photo- 
Zfl^'        '■?f"**'"*>er  correctly,  and  copies  of  it  were  published  in  the 
newspapers.    It  was  m  reference  to  the  abstraction  if  this  voucher 
from  the  custody  of  the  receiver  and  its  being  photographeil  and  pub 
lished  that  my  conversation  was  held  with  Senator  Quay.  ^ 

By  Mr.  Beosius: 

8'  ^H".^*  *  ®"'*  ""^®  *'"*  of  that  publication*— A.  Yes,  sir 
»,.  =;o£i  •  ^?  publisher  was  convicted  !-A.  I  understand  thkt  to  be 
80  stated  in  the  newspapers. 

By  Mr.  Dickeeson: 

ofthp^o^I^w""*'*^ '  ?"*  ^?  PnbUshing  the  articles,  but  on  account 
ot  the  comments  made  in  reference  to  it  f— A.  I  would  not  sav  as  to 
that,  because  it  is  not  fresh  in  my  recollection.  ^ 

w'i^p^^^^Sf.lf'nf  *?'*'■*  '?  anything  in  it  we  can  get  that  later. 

thSeSat*of  d?p™"^-  '^  ''''''  ^-^'^''S  *«  «^«-  '^'^  «!«**  of 
The  Chairman.  Nothing. 

By  Mr.  Dickerson: 

i.o^'  FH^^^  know  whether  he  actually  deposited  the  money  there  when 
he  got  the  certificate ?-A.  I  have  no  personal  knowledge,  hk  to  th^t 

M.  Do  you  know  whether  any  of  these  parties  were  interested  in  it?— 
time.  probably  read  what  was  said  in  the  newspai)er8  at  the 

Q.  You  do  not  know  whether  it  was  a  loan  or  a  deposit?— A.  Of  mv 
own  knowledge  I  know  nothing  about  it.  ^ 

,.n?;.^i?fw  fi,''''^^^'''^  ^ri"^  ^  y^^  ^y  ^^-  Q"ay  «^«"fc  it^-A.  i  do 

not  recall  that  there  was.    It  was  wholly  a  question  of  how  it  came  to 
get  out  ot  the  possession  of  the  receiver,  who  was  resp(>nsible  C  it^ 
being  abstracted  from  the  records  of  the  trust.    I  do  not  know. 
By  Mr.  Walker: 

Q.  The  information  was  a  copy  of  the  paper  abstracted  ?— A.  It  was 
understood  that  the  certificate  itself  had'^been  taken  from  the  pos^^ 
sion  of  the  receiver  and  had  been  photographed 
a  J^;/«^  returned ?-A.  I  think  so,  but  I  am  not  positively  certain.    1 

^1^  ^^  "^^^  ^""^"^  ^^^  ^^«^*«  «^  *^^  ti'ust- 

Mr.  Dickerson.  Did  you  ever  see  any  correspondence  between  Mr 
Drew  or  the  receiver,  or  anybody  else  and  Quay  in  reference  to  it^-i; 
■i^  o,  sir* 


415 


N 


By  Mr.  Cox: 

Q.  Did  you  ever  hear  Drew's  explanation  of  how  it  got  out  of  the 
hands  of  the  receiver? — A.  Mr.  Drew  was  not  in  possession  of  the  bank 
at  the  time.  I  do  not  recall  having  any  conversation  with  the  receiver 
in  relation  to  it,  but  as  I  understood  it,  it  is  still  a  matter  of  grave 
doubt  as  to  how  it  did  disappear  from  the  files  of  the  trust.  I  have  no 
information  of  how  it  got  out,  nor  am  I  informed  as  to  who  is  responsi- 
ble for  it. 

On  November  2, 1891 , 1  sent  the  following  to  Senator  Quay  in  response 
to  the  one  that  has  been  read : 

Exhibit  32. 

Treasury  Department, 
Office  of  the  CoMrTROLLER  of  the  Currency, 

Washivgton,  Nov.  2,  1891. 
Hon.  M.  S.  Quay, 

Beaver,  Pa. : 

Dispach  received  and  referred  to  Secretary,  who  is  iuterrogatiiig  party  and  will 
reply  when  answer  received. 

E.  S.  Lacey, 

Comptroller. 

Q.  What  party  was  he  interrogating  as  referred  to  in  the  letter. 
What  party  is  he  talking  about?— A.  His  telegram  asked  that  Mr. 
Keeves  be  interrogated,  and  I  suppose  it  referred  to  Mr.  Keeves. 

By  the  Chairman  : 

Q.  Which  Secretary  is  referred  to  !— A.  The  Secretary  of  the  Treasury. 

By  Mr.  Dickerson: 

Q.  Who  is  Mr.  Reeves? — A.  He  is  chairman  of  the  committee  of 
fifty. 

Q.  From  the  city  of  Philadelphia?— A.  Of  the  city  of  Philadelphia, 
under  whose  direction  a  certain  investigation  of  the  condition  of  this 
bank  was  made.  This  committee  raised  a  ftind  by  itself,  by  voluntary 
contributions,  and  employed  four  exi)erts,  who  were  detailed  to  examine 
the  affairs  of  the  Keystone  National  Bank,  and  the  attairs  of  the  Spring 
Garden  National  Bank. 

Q.  They  were  admitted  to  the  records  of  the  Keystone  Bank  by  your 
consent? — A.  By  my  consent.  There  was  associated  with  them,  as  I 
have  heretofore  testified,  four  employes  of  the  Treasury  Department,  two 
in  the  Keystone  Bank,  and  two  in  the  Spring  Garden  Bank,  and  tli^y 
jointly  made  an  investigation. 

Q.  In  connection  with  the  investigation  made  by  the  council  of  Phila- 
delphia?— A.  The  council  made  the  first  investigation,  the  governor 
made  the  next,  and  then  an  investigation  was  made  by  two  experts 
appointed  by  the  mayor  of  Philadelphia,  and  paid  for  out  of  the  public 
funds.  And  third  and  last  came  this  investigation  by  the  citizens  com- 
mittee of  fifty,  and  experts  detailed  from  the  Treasury  Department. 
This  is  still  progressing  and  has  been  since  about  the  first  of  October 
last. 

[Insert  in  evidence  communication  contained  in  package  marked  No. 
21  of  this  date.J 

Messrs.  Reed  &  Pettit,  lawyers  of  Philadelphia,  were  employed  by 
the  Keystone  Bank  to  make  an  investigation  of  the  Sea  Girt  Land  Im- 
provement and  the  Spring  Lake  Beach  Improvement  Companies  as  to 
the  value  of  the  stock  in  those  two  ct)mj)anies  to  be  turned  over  to  the 
Keystone  Bank  in  payment  of  installments  of  the  deficit  found  on  ac- 


i  { 


416 


INVESTIGATION   OF    NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


417 


count  of  the  money  taken  by  the  Lucas  estate,  or  Lucas  during  his  life- 
time. 

I  have  before  me  the  communication  fi'om  Reed  &  Pettit,  under  date 
of  March  18, 1891,  addressed  to  the  Keystone  Bank. — Witness^  judgment. 

Exhibit  33. 

Philadelphia,  March  18, 1891. 
The  Keystone  National  Bank, 

Chestnut  and  Juniper  sts.,  Phila.: 

Gentlemen:  Wo  have  investigated  the  condition,  nature,  and  extent  of  the  prop- 
erty belonging  to  the  Sea  Girt  Land  Improvement  Company  and  the  Spring  Lake 
Beach  Improvement  Company  and  the  interest  of  the  bank  in  those  companies,  and 
have  to  report  as  follows : 

By  an  agreement  or  bill  of  sale  from  Mrs.  M.  Elizabeth  Lucas  to  the  bank,  there 
was  transferred  to  it  all  her  interest  in  the  above-mentioned  two  companies,  which 
she  had  theretofore  conveyed  by  agreement  to  Mr.  Henry  H.  Yard,  and  all  her  inter- 
est in  the  said  agreement.  This  interest  in  the  said  companies  consisted  in  a  holding 
of  stock  therein,  represented,  as  we  understand,  in  the  one  case  to  be  90  per  cent 
thereof  and  in  the  other  95  per  cent  thereof. 

The  agreement  with  Mr.  Yard  referred  to  in  the  transfer  to  the  bank  was  an  agree- 
ment by  which  Mr.  Yard,  mnler  date  of  August  20,  1889,  agreed  to  pay  $400,000  for 
the  entire  tract  now  owned  by  the  Sea  Girt  Land  Improvement  Company  and  the 
property  owntMl  by  the  Spring  Lake  Beach  Improvement  Comi)any,  the  same  to  be 
free  from  all  incumbrance,  provided  that,  if  any  indebtedness  should  exist  and  its 
amount  could  be  ascertained  with  certainty,  then  the  indebtedness  should  be  settled 
by  the  party  purchasing  by  deducting  the  indebtedness  from  the  purch.ise  money  of 
$400,000,  and  provided  that  if  it  was  not  deemed  advisable  to  convey  the  properties 
absolutely,  but  it  was  preferred  to  sell  only  such  interest  or  interests  as  Mrs.  Lucas 
owned  or  controlled  in  the  capital  stock  of  the  said  company,  that  he  would  buy  all 
the  stock  upon  a  valuation  of  $100,000,  less  the  indebtedness,  if  any,  for  the  Spring 
Lake  Beach  Improvement  Comi>any  and  $300,000,  less  indebtedness,  if  any,  for  the 
Sea  Girt  Land  Improvement  Company  upon  certain  agreed  payments,  $50,000  to  be  in 
cash  and  the  deferred  payments  to  be  represented  by  approved  notes  witli  the  stock 
as  collateral.  This,  as  stated  by  an  indorsement  on  the  paper  signed  by  Mrs.  Lucas, 
was  accepted  by  her  on  August  27th,  and  a  payment  of  $5,000  then  received.  And, 
it  having  been  determined  to  sell  th<^  stock  and  not  the  land,  the  stock  was  delivered 
to  Mr.  Yard;  the  balance  of  $45,000,  making  the  first  payment,  it  is  stated,  was  paid, 
and  Mr.  Yard  gave  his  notes  for  $250,000  of  the  balance  of  the  purchase  money,  with 
the  stock  attached  or  intended  to  be  attached  as  collateral,  leaving  $100,000  to  be  ar- 
ranged when  the  amount  of  the  indebtedness  of  the  two  companies  was  ascertained. 
These  notes  were  transtV'iTed  to  the  Keystone  National  Bank  and  be<*am»'  its  property, 
and  are  now  in  the  actual  possession,  as  we  are  informed,  of  Mr.  Bardsley,  with 
the  stock  as  collateral  thereto. 

The  transaction  was  never  further  completed,  the  amount  of  the  indebtedness  was 
not  ascertained,  and  no  further  settlement  was  made  with  Mr.  Yard,  an«l  the  amount, 
if  anything,  coming  from  him  under  that  arrangement  out  of  the  balance  of  $100,000 
unpaid  was  left  unadjusted. 

Without  more  it  would  seem  therefore  that  Mrs.  Lucas  had  nothing  to  sell.  The 
transfer  by  her,  however,  recites  that  this  sale  to  Mr.  Yard  was  really  made  to  him,  not 
for  his  personal  benefit,  but  for  the  purpose  of  enabling  the  property  to  be  converted 
into  money  to  be  paid  to  the  Keystone  National  Bank,  and  to  this  Mr.  Yard,  who  was 
present,  assented.  A  paper  was  prepared  for  his  signature  releasing  and  conveying 
to  the  bank  his  title  and  interest  in  the  stock,  but  he  has  not  as  yet  executed  it,  and 
naturally  enough,  as  his  notes  for  $250,000  have  not  only  not  been  returned  to  him,  but 
are  in  the  hancfs  of  a  third  party. 

Beyond  all  question^  however,  the  title  of  the  bank  to  the  stock  should  be  per- 
fected as  soon  as  possible.  It  now  depends  on  verbal  proof  of  Mr.  Yard's  assent. 
For,  though  the  bank  has  the  stock  yet  it  got  possession  as  collateral  to  Mr.  Yard's 
notes,  the  certificates  have  not  been  transferred  on  the  books  to  the  bank,  and  an 
assertion  on  Mr.  Yard's  part  of  a  right  to  redeem  by  the  payment  of  the  notes  could 
be  only  defeated  by  verbal  proof  of  his  assent  to  the  presmt  transfer. 

If  at  all  practicable  Mr.  Yard  should  sign  the  release,  his  notes  should  be  returue<l, 
and  the  certificates  put  in  the  name  of  the  bank. 

The  Spring  Lake  Beach  Improvmeut  Company  was  chartered  by  a  special  act  of 
assembly  of  New  Jersey  approved  March  15,  1875.  The  board  of  directors  was  fixed 
at  five  in  number,  to  be  chosen  either  in  New  Jersey  or  the  city  of  Philadelphia 
annually  '^  at  such  times,  in  such  manner,  and  upon  such  notice  "  as  the  by-laws  may 
direct,  meetings  to  be  held  either  in  New  Jersey  or  Philadelphia.     By  the  act  the. 


president  and  board  of  directors  are  given  full  power  to  transact  the  busipess  of  the 
company  and  it  is  provided  that  any  conveyance  signed  by  the  president  and  secre- 
tary and  duly  sealed  and  acknowledged  according  to  the  laws  of  New  Jersey  shall 
have  full  force  and  effect  to  bind  the  company  to  all  the  covenants  and  conditions 
therein  contained,  with  power  to  subscribe  for  and  take  stock  in  and  purchase 
bonds  of  any  canal^ailroad,  turnpike,  or  other  highway  thai*  shall  lead  to  or  pass 
through  its  lands.    The  duration  of  the  corporation  w  as  not  limited. 

The  authorized  capital  was  $500,000.  We  can  find  no  stock  ledger,  minute  book,  or 
any  other  record  whatsoever  of  the  company  prior  to  the  year  1889,  except  only  the 
stock  certificate  book.  By  the  stubs  remaining  in  that  book  there  appears  to  be 
outstanding  on  March  1,  1891,  $423,000  of  capital  stock. 

The  following  is  a  list  of  the  shareholders  as  taken  from  the  stubs  of  that  book : 

Browning,  Mrs.  Anna  Francis 100 

S.L.Gillin ^ 

Haines,  G.B ^ 

Hamilton,  Wm.  C 67 

Irwin,  Edward 1? 

Jackson,  W.  S J^ 

Lucas,  William 10 

Luca8,Samuel ^-        10 

Lucas,  J.  C 1.501 

Marsh,  G.W 10 

Oviatt,S.B 6 

Roberts,  Edwards,  jr ^    10 

Yard,H.H 2,420 

4 ,  238 

2,000  shares  of  this  stock  in  the  name  of  Henry  H.  Yard  has  been  by  him  endorse<l 
in  blank  and  as  collateral  for  his  notes  came  to  the  Keyston«  National  Bank,  but  is 
now,  we  are  informed,  in  the  possession  of  Mr.  John  Bardsley,  city  treasurer.  655 
shares  in  4  certificates  (3  in  the  name  of  J.  C.  Lucas  for  a  total  of  a50  shares  and 
one  in  the  name  of  Granville  B.  Haines  for  five  shares),  all  endorsed  in  blank,  belong 
to  and  are  in  the  possession  of  the  Keystone  National  Bank.  400  shares  additional  are 
in  the  possession  of  the  bank,  but  they,  Mr.  Yard  claims,  should  be  cancelled  upon  the 
delivery  to  the  bank  of  a  certificate  in  his  name  for  a  like  number  of  shares.  Of  the 
remaining  1,183  shares  332  stand  in  the  name  of  the  persons  above  specified,  and  the 
balance,  851,  should  be  in  the  possession  of  the  bank,  but  their  whereabouts  are  un- 
known. It  is  also  unknown  as  to  Avhether  or  not  any  certificates  for  the  remaining 
shares  not  appearing  to  have  been  issued  by  the  stock  certificate  book,  between 
$443,800  and  $500,000,  are  outstaiuling  or  not.  None,  we  are  told,  have  ever  been 
heard  of.  From  some  memoranda,  however,  upon  the  stubs  it  appears  that  some  of 
the  certificates  from  the  present  stock  certificate  book  were  issued  in  exchange  for 
"script  certificates."  Whether  this  means  that  certain  script  was  ever  issued  by  the 
company  convertible  into  stock  or  whether  the  script  certificates  were  merely  mem- 
orandum certificates  issued  prior  to  the  engraving  of  the  present  certificates  is  not 
known,  nor  is  it  absolutely  known  that  no  other  script  certificates  remain  unsurren- 
<lered.  None,  however,  are  known  to  exist.  From  a  memorandum  pasted  in  the 
front  part  of  the  certificate  book  it  appears  that  on  November  1,  1889,  there  were 
outstanding  only  $383,800  of  capital  stock.  Since  that  time  no  certificates  have  been 
issued,  except  2,430,  all  in  Mr.  Yard's  name,  of  which  Mr.  Bardsley  has  2,000  and  the 
remaining  430  are  missing.  Mr.  Yard  was  unable  to  specify  what  pre<'ise  certificates 
were  returned  and  cancelled  in  exchange  for  those  issued  to  him,  but  says,  as  seems 
to  be  probable,  that  400  shares  more  have  been  issued  to  him  than  were  cancelled, 
and  that  the  400  above  referred  to  as  being  in  the  possession  of  the  bank  should  be 
returned  as  was  intended,  thus  reducing  the  outstanding  stock  to  3,838  shares  as 

before. 

The  officers  of  the  company  are  Henry  H.  Yard,  president;  G.  W.  Marsh,  treasurer; 
Samuel  L.  Gillin,  secretary.  The  present  directors  are  G.  W.  Marsh,  Philadelphia ;  S. 
B.Oviatt,  Asbury  Park,  N.  J.;  H.  H.  Yard,  Philadelphia;  S.L.Gillin,  lielmar,  N.  J.; 
W.  S.  Jackson,  Belmar,  N.  J.  The  time  for  the  annual  elections  we  do  not  know.  Mr. 
Yard,  president,  could  not  give  us  any  definite  information  without  reference  to  the 
minute  book,  which  was  in  Belmar. 

The  property,  belonging  to  the  company,  consisted  originally  of  u])wards  of  400 
acres  of  land  situate  in  Wall  Township,  Monmouth  County,  New  Jersey,  ac([uired 
by  purchase  from  sundry  parties,  and  which  after  the  sale  of  all  north  of  the  most 
northern  line  shown  on  the  accompanying  ma]t,  and  the  small  tract  marked  'Manies 
Thompson,"  remained  as  shown  on  the  map  ami  was  subdivided  into  lots  by  tlie  com- 
pany an  there  shown.  The  company  sohl  from  time  to  time  the  lots  cohued  ui^on  the 
plan,  and  also  six  others,  lying  west  of  the  railroad  until  December  19,  1889,  when 

3792 27 


i.*f 


'    I, 


•i  ; 


lP 


418  INVESTIGATION   OF   NATIONAL  BANKS. 

bv  a  deed  bearing  that  date,  recorded  January  1,  1^»  i^  deed  book  258,  p.  3f5,  th« 
cJnmaiiv  sold  and  conveyed^  theSpringLake  and  Sea  Girt  Company,  for  tlie  consid- 
CTatFon  expressed  in  the  deed  of  $180,000,  all  the  property  belonging  to  it  remaining 
nnsoTd  anTlyfng  east  of  the  railroad,  taking  in  part  payment  a  mortgage  seciir^l 
thereon  for  $125,000  and  recorded  on  January  1,  1890,  in  mortgage  boot  140,  p.  192 
The  difference  between  $180,000  and  $125,000,  the  face  of  the  mortgage,  was  paid  in 
not^s     These  notes  were  gi^ento  Mr.  Yard,  by  a  resolution  of  tl^^^^^^d  of  directors 
as  his  commission  for  making  the  sale.    The  transaction  as  explained  by  Mr  Yard 
was  this:  The  new  company  was  organized  with  an  authorized  capit^of  $/00  (XX^ 
The  only  stock  issued  was  issued  to  Mr.  Yard  and  amounted  to  $160,000.     Mr.  lard 
nafd  to  the  new  company  $160,000.     The  new  company  with  this  paid  the  notes 
which  had  be^ngiyen  to  Mr  Yard  as  commission,  $55,000  from  the  Spring  Lake  Com- 
pany and  $105^from  the  Sea  Girt  Company.    So  that  Mr.  Yard  Pf  \^othing  for  his 
SlS)  000  worth  of  stock,  but  received  it  as  a  commission  for  a  sale  by  himself  to  him- 
tlm    It  is  stated  that  he  has  since  transferred  a  part  of  this  stock,  in  some  cases  for 

^ITtWs  Where^^^^^^^^^  company  is  the  tract 

lying  west  of  the  railroad,  less  the  six  lots  above  referred  to  a«  having  been  hereto- 

^""Ynl^b^^^T-This  land  is  free  from  incumbrances.  The  deed  to  the  Spring  Lake 
and  Sea  Girt  Company  recites  that  the  land  is  subject  to  a  mortgage  to  Forman  Osborn, 
of  whTch  the  balance  unpaid  was  $16,000,  but  this  has  since  been  satisfaed  and  is  so. 

""  FafutlThe^land^^^^^^  of  the  railroad  has  been  partially  laid  out  into  lots  upon  p^i- 
per,  but  as  a  matter  of  fact  is  yet  undeveloped.  The  part  so  marked  is  covered  ^^  th 
timber,  onH^  two  streets  have  been  opened  through,  and  but  six  lots  have  been  sold, 
and  four  St- those  by  a  transfer,  along  with  a  number  of  others  by  Mr  Luca^,  who 
?ook  a  mortgage  in  exchange,  and  who  made  it  solely  for  the  purpose  of  negotiating 
the  morttrace  as  a  more  ready  means  of  realizing  thereon.  ,  ^  ^-  ,  ,  ,  -,|_ 
NXiirdings  have  been  erected  on  any  part  o?  it,  and  much  of  the  land  eaM  of  the 
railroa<l,  though  sold,  is  as  yet  unbuilt  upon,  and  the  tract  west  of  the  railroad  tv  i  I 
not  in  oir  opinion  be  available  for  sale  in  lots  for  some  years  to  come,  if  at  all.  It  is 
a  liUle  ove?  half  a  mile  from  the  beach  and  is  not  likely  to  become,  very  soon  at 
least  a  place  of  summer  residence  for  the  wealthier  classes,  which  alone  gives  value 
to  seaside  nroperty.  Inquiry  at  Spring  Lake,  and  our  own  judgment,  taking  all 
things  into^cSe^ation  us  to  plf  ce  a  valuation  of  $500  per  acre,  or  $  2o  pe^ 

lot,  as  a  high  valuation  oA  the  property      It  is  ^ot  likely  that  such  price  c^^^^^^^  now 
be  realized?    The  tract  contains  about  53  acres,  and  if  laid  out  would  make  212  lots 
and  at  that  valuation  is  worth  $26,500.    That  this  is  not  ^ }f^^  ^^^}'^^T."^^Zl^  P"^ 
by  the  tact  that  the  land  east  of  the  railroad  was  sold  to  the  Spring  Lake  and  feca 
Girt  Company  at  a  valuation  of  $250  a  lot,  and  the  title  to  the  laTce  and  the  tarm 

"^^TheXtgf  ^^^^^^^^  by  the  Spring  Lake  and  Sea  Girt  Company  is  as 

as  above  state^l  for  $125,000.  It  is  secured  upon  466  lots  and  the  farm  build ng,  and 
contains  a  provision  that  the  company  will  release  any  lots  designated  by  the  Spring 
Lake  and  Sea  Girt  Company  upon  the  payment  of  $250  a  lot,  provided  no  Pa.V"'^*  « 
less  than  $1,000,  which  of  course  enables  the  mortgagor  to  obtain  the  release  ot  the 
valuable  lots  and  leave  the  mortgagee  with  the  least  valuable  as  security  tor  anyun- 
naid  balance.  The  mortgage  is  made  payable  in  two  years,  with  interest  payable 
Inn  laUyTit  falls  due  Dec^lmber  19,  1891.  The  sum  of  $48,000  has  been  borrowed  upon 
it  bv  the  company,  and  it  has  been  assigned  as  collateral  security  for  that  amount. 
Thi J  WoTed  money  was  spent,  $16,0(K)  for  the  payment  of  the  Osborn  mortgage 
above  referred  to,  and  $30,OOoV  the  purchase  of  300  shares  of  stock  of  the  Keystone 
Bank  which  we  kre  informed  is  in  the  possession  of  the  bank.  In  addition,  we  are 
informed  $10,000  has  been  paid  to  the  company  on  account  of  the  principal  anil 

^'^Thronly  other  liability,  we  are  informed,  is  a  note  for  $5,000  held  by  your  bank. 

The  valuation  of  the  property  is  therefore,  exclusive  of  the  stock  of  the  Keystone 
National  Bank — 

,       ,  $26,.500 

Liancl .....--.---.-----•  ^. 

Balance  of  mortgage,  say '  ^ 

100,500 

^   ,     .       ,  5,000 

Deduct  note ^ 

95, 500 

Making  the  value  of  each  share  on  the  capital  stock  of  4,238  shares  $22.53,  or  on  a 
capital  of  3,838  shares,  $24.88.  .         ^  ^,     ^r     ^  ^         '4. 

In  addition  to  these  assets  there  are  in  the  possession  of  Mr.  Yard  two  mortgagl^s, 


INVESTIGATION  OF  NATIONAL  BANKS. 


419 


dated  December  23,  1887,  given  by  Edwin  Irwin  to  John  C.  Lucas,  one  for  $16,500, 
and  secured  upon  30  lots,  recorded  in  Mortgage  Book  127,  p.  48,  and  the  other  for 
$27,500,  and  secured  upon  fifty  lots,  recorded  in  Mortgage  Book  127,  p.  53,  due  in  five 
vears  from  date.  These  lots  were  conveyed  on  the  same  day  to  Mr.  Irwin  by  the 
Spring  Lake  Beach  Improvement  Company,  and  it  is  claimed  that  the  mortgages 
should  have  been  made  to  the  company  instead  of  Mr.  Lucas  individually,  and  that 
they  are  properly  the  property  of  the  company.  Some  payments  have  been  made  on 
account  of  them,  and  they  have  been  considerably  reduced,  but  they  cannot  in  their 
present  state  be  considered  an  asset  of  the  company,  and  we  have  not  ascertained 
the  precise  amount  due.  It  is  proposed  to  take  legal  steps  to  acquire  proper  title  to 
the  mortgages,  and  if  this  has  not  already  been  done,  it  should  be  done  promptly. 

The  Sea  Girt  Land  Improvement  Company  was  incorporated  by  act  of  assembly 
of  New  Jersey,  approved  March  30,  1869. 

The  board  of  directors  was  fixed  at  seven  in  number,  a  majority  of  whom  shall  be 
residents  of  New  Jersey,  and  to  be  chosen  annually  on  the  first  Monday  in  May,  two 
weeks  notice  by  publication  in  a  nevvspaper  in  Monmouth  County  to  be  given. 

The  corporation  to  expire  in  thirty  years  from  date  of  said  act. 

The  present  directors  and  their  residences  are — 
.  G.  W.  Marsh,  Philadelphia,  Pa. ;  H.  H.  Yard,  Belmar,  N.  J. ;  S.  L.  Gillin,  Behnar,  N. 
J. ;  B.  H.  Yard,  Spring  Lake,  N.  J. ;  S.  B.  Oviatt,  Asbury  Park,  N.  J. ;  L.  U.  Maltby, 
Philadelphia,  Pa. ;  W.  S.  Jackson,  Belmar,  N.  J. 

The  stock  of  this  company  was  acquired  by  the  same  conveyances  as  that  of  the 
Spring  Lake  Company,  and  stands  in  precisely  the  same  way,  and  the  title  should  be 
])erfected  in  the  same  manner.  The  authorized  capital  was  $500,000.  No  minutes  or 
other  record  books  of  the  company  can  be  found  except  the  stock-certificate  book. 
By  the  stub  of  that  book  there  was  outstanding  on  March  1, 1891,  $489,200  of  capital 
stock. 

The  following  is  a  list  of  the  shareholders  appearing  from  said  stubs : 


Names. 


Albright,  Chas 

Butler,B 

lirowning,  Maurice. . . • 

Browning,  G.  Geo 

C'ooper,  tJos.  B 

Divine,  R.T 

(iillin.S.L 

Haines,  G.  B 

Hemphill,  A.J 

Hinchman.  Walter 

Jarkson,  W.  S 

Hinchman,  Chas.  S 

Lucas,  Wm 


No.  of 
shares. 


30 

10 

27 

26 

2 

10 

10 

605 

5 

2 

40 

22 

10 


Names. 


No.  of 

shares. 


Lucas,  Sam'l 

Lucas,  Est.  J.  C 

Maltby,  L.  U 

Marsh,  G.W 

Morris,  E.  P 

Murphy ,  E.  B 

Qviatt,S.  B 

Taylor.  Chas.  S 

Wright,  W.H , 

Yard,  Bcnj.  H 

Yard,H.H 

Total  number  of  shares 


200 

1,320 

10 

80 

2 

27 

20 

2 

10 

14 

2,400 


4,892 


Of  this  the  bank  then  held  in  its  possession  2,209  shares,  and  also  held  as  collat- 
eral to  Mr.  Yard's  notes  in  addition,  as  we  are  informed,  2,380  shares,  which  were 
in  the  possession  of  Mr.  Bardsley,  or  in  all,  4,.589  shares. 

The  property  belonging  to  this  company  originally  comprised  some  600  acres  of 
land  situate  in  Wall  Township,  Monmouth  County,  N.J,  and  adjoining  the  Spring 
Lake  Company's  property  on  the  south. 

It  was  situate  as  shown  on  the  accompanying  maj).  From  time  to  time  the  com- 
pany m.ade  conveyances  of  the  colored  portion  of  the  map,  and  by  «l<'ed  dated  Decem- 
luT  19,  1889,  conveyed  all  the  land  remaining  unsold  lying  east  of  the  railroad  north 
of  Sea  Girt  avenue  and  south  of  the  Spring  Lake  Company's  line  unto  the  Spring 
I^ake  .ind  Sea  Girt  Company  for  the  nominal  consideration  of  $320,000,  taking  a 
mortgage  in  payment  for  $215,000.  The  ditference  was  paid  in  notes  which  were 
paid  to  Mr.  Yard  as  commission  as  before  stated.  Previous  to  this  the  State  of  New 
Jersey  had  commenced  proceedings  to  condemn  for  the  pur])oses  of  a  military  encamp- 
ment all  the  portion  of  the  pro]>erty  lying  south  of  Sea  Girt  avenue,  except  a  small 
portion  east  of  Second  avenue,  Avhicii,  however,  is  of  little  or  no  present  value,  owing 
to  the  proximity  of  the  encampment  and  the  existence  of  a  ritle  range  leading  out  to 
the  ocean. 

These  proceedings  have  so  far  proceeded  that  the  land  has  been  taken  and  the 
damages  assessed  at  $70,000,  which  we  are  informed  will  be  paid  some  time  this 
spring,  and  as  soon  as  the  mortgage  held  by  the  Fidelity  Trust  Company,  trustee,  is 
satisfied  will  all  come  to  this  company. 

These  two  tracts  being  deducted,  the  only  real  estate  remaining  in  the  company  is 
the  strip  along  the  beach  above  alluded  to  and  the  part  lying  west  of  the  railroad. 
Part  of  this  as  marked  is  also  woodland,  and  the  same  observations  made  in  regard 


m 


1'  ■'. 

■i    r 


t 


i 


1 


'I 


I  i 


Li' 


! 


% 


II 


420  INVESTIGATION   OF   NATIONAL   BANKS. 

to  the  former  companv's  property  apply  to  this  ^ith  greater  force,  for  the  reason  that 
srai r^'lv  any  of  the  property  east  of  the  railroad  has  been  sold,  and  it  will  be  many 
v^'arV  l^fore  this  will  be  available,  especially  in  competition  with  the  land  east  of 
the  railroad  in  the  hands  of  another  owner.  There  isleft,  however,  about  80  acres 
of  land,  or  320  lots,  wortli  at  the  same  valuation,  $40,000. 

Th  ""ami  ?8  free  from  incumbrance  except  a  mortgage  for  $100,000  given  by  the 
comnany  and  secured  upon  the  land  embraced  within  the  red-mk  line. 

This  was  given  to  secure  the  i»ayment  of  100  bonds  of  $1,000  each,  in  ten  years  trom 
Mav  1  1875;  78  of  these  bonds  have  been  canceled,  leaving  22  to  be  accounted  tor. 
These  the  Lucas  estate  had  agreed  to  procure  and  surrender  for  cancellation  without 
cost  to  the  company,  and  at  this  writing  all  but  three  have  been  secured  and  are 
held  by  ihe  counsel  for  that  estate,  and  will  soon  bo,  if  there  are  not  already,  so 

^'^The  mortijage  i'or  $215,000  belonging  to  the  company  contains  the  same  clause  as 
to  tlie  releaseof  lots  as  the  one  given  in  the  case  of  the  Spring  Lake  Company,  except 
that  the  Huni  per  lot  is  fixed  at  $200.  The  mortgages  coyer  1,150  lots,  and  at  that 
rate  would  produce  $230,000,  but  is  subject  to  the  same  criticism  as  the  former  one, 
that  the  eoinpanv  might  be  left  with  the  least  desirable  and  practically  unsalable 
lots  as  security  for  aiiv  unpaid  balance,  though  on  the  other  hand,  inasmuch  as  the 
mortgage  coiuVs  due  on  December  19,  of  the  present  year,  this  is  not,  perhaps,  very 

"^The'  only  other  liability,  as  we  are  informed,  is  one  note  held  by  the  bank  of 

The* title  t«>  the  land  has  not  been  thoroughly  investigated,  as  it  was  conceived 
the  (»biect  of  the  present  investigation  <Hd  not  require  it.  It  is  doubtless  good.  One 
cY'i  i  was  asserted  to  a  tract  of  Tibout  2:^  acres  of  it  by  Elizabeth  McKay  Roberts, 
who  claimed  in  some  way  to  have  a  title.  This  title  was  acquired  by  Mrs.  Lucas, 
and  on  November  20,  1889,  conveyed  by  her  to  the  company.  Mr.  Yard  did  claim  a 
title  under  a  return  and  survey  to  a  portion  of  the  lan^,  but  as  far  as  can  be  ascer- 
taine«l  this  <loes  not  affect  the  land  west  of  the  railroad.  It  has  been  stated  that  he 
conveyed  this  title  to  Mr.  Lucas,  but  the  deed  has  not  been  recorded  and  its  where- 
abouts are  unknown.  ^.        _        ,.  i-      *i 

The  value  of  the  present  holdings  of  the  company,  may,  therefore,  disregarding  the 

mortgage  to  the  Fidelity  Company,  be  estimated  as  follows : 

Value  of  land .:V.--V fi^mm 

Damages  for  land  taken  by  State  ot  New  Jersey 2r  000 

Mortgages "^^ 

4892):J25,  000 

T»-. 66. 43 

Per  share _______ 

The  bank  holds  2,655  shares  of  Spring  Lake  Beach  Improvement  Co.  at 

|92  53  ; ^    '     ,{' 

AndT,589  shares  of  Sea  Girib  Land  Iiupiovemeut  Coin]>any,  at  65.41 300, 1(>6.  49 

Total  value 359,  983.  64 

Or  at  the  greater  valuation  as  to  Spring  Lake  Company  of  $24.88  per 

,  "  <roo,  U;)o.  4<  f 

Sea  Girt  Company - ^iJi;,  urn.  4.f 

Tot^l 366,222.89 

Of  course  whatever  value  mav  be  reeeiv<'d  from  the  land  between  the  military  eu- 
campiuent  grounds  and  the  <M-eau  from  the  3(X)  shanks  of  the  sto.k  of  the  Keystone 
National  Uauk  and  from  tlu'  t>vo  UM.rtgages  standing  in  the  name  ot  Mr.  Lucas  lor 
$27  500  and  $16,(K)0,  as  reduced  ti.  a  total  of  agout  $30,000,  should  be  a.bled  to  the  above 
valuation.  The  deliverv  to  the  bank  of  the  851  shares  aaditional,  to  which  it  is  en- 
titled of  the  Spring  Lake  sfoek  will  increase  the  valne  (»t  its  holding  in  that  com- 
pany,'when  the  overissue  of400  shares  is  retired,  to  $87,229.28  ami  adding  to  the 
Value  of  the  Sea  Girt  Co.  $300,166.49,  make  the  value  .)t  the  holdings  m  both  com- 

^*Th?ttnMroing' ^^  has  been  ol)tained  from  interviews  and  consultations 

with  Mr  Yard  and  an  examination  of  the  books  in  his  possession;  from  a  personal 
examination  during  two  days  of  the  reecu-ds  at  Freehold  and  of  all  the  conveyances 
to  both  eomi>anies  and  all  e'onveyances  from  them  and  from  a  visit  to,  and  inspection 
of  the  land  itself  and  a  veriHcation  of  the  plan  hereto  annexed  by  comparison  with 
the  deeds,  and  has  been  carefully  examined  and  is  believed  to  be  correct. 


INVESTIGATION  OF   NATIONAL   BANKS. 


421 


I 


We  would  recommend  that  the  bank  procure  from  Mr.  Yard  a  release  of  his  title 
to  the  stock  and  surrender  his  notes ;  that  it  institute  a  search  for  the  851  shares 
that  should  be  delivered  to  it,  and  take  steps  to  procure  if  possible  their  delivery ; 
that  it  cause  steps  to  be  taken  to  have  the  title  to  the  two  mortgages  standing  in 
Mr.  Lucas'  name  declared  to  be  in  the  company,  and  to  have  the  mortgages  reformed, 
an<l  that  it  make  some  effort  to  facilitate  if  possible  the  payment  of  the  $70,000  due 
for  the  land  taken  by  the  State  of  New  Jersey. 

This  much  being  accomplished,  the  bank  would  then  be  in  a  position  to  turn  its 

attention  to  realization  upon  the  assets  of  the  company,  viz,  the  land  and  the  nuut- 

gages  above  described. 

Yours,  respectfully, 

Eeai>  ifc  Pettit. 

I  also  produce  another  communication  addressed  to  me  by  Mr.  Yard- 
ley,  a  receiver  of  the  Keystone  Bank,  dated  Philadelpliia,  April  29, 
1892.    Witness  reads  same. 

Exhibit  34. 

Keystoxe  National  Bank, 
1326  AND  1.328  Chesini  T  Street, 

Fhiladelphia,  April  29, 1892. 

Hon.  E.  S.  Lacey, 

Cnmptroller  of  the  Currency,  Washington,  D.  C: 

Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of  the  27th  inst., 
mailed  on  the  28th.  From  the  best  sources  of  information  whit  h  I  can  command  I 
conclude  that  a  valuation  of  the  stock  of  the  Sea  Girt  Land  Improvement  Company 
at  $60  per  share  and  that  of  the  Spring  Lake  Beaeh  Improvement  Company  at  $22.50 
per  share  is  a  conservative  estimate. 

There  came  into  my  hands  from  National  Bank  Examiner  Drew  as  assets  of  the 
Keystone  National  Bank  2,209  shares  of  Sea  Girt  and  1,055  shares  of  the  Spfing  Lake 
stock.  H.  H.  Yard  questions  the  validity  of  400  shares  of  the  latter  and  insists  that 
it  should  have  been  surrendered,  as  other  stock  was  issued,  he  alleges,  in  its  stead. 

At  the  same  time  there  were  in  the  hands  of  John  Bardsley  2,000  shares  of  the 
Spring  Lake  and  2,380  shares  of  the  Sea  Girt  stoek,  the  property  of  the  bank,  w^iich 
he  alle^'es  had  been  given  him  as  collateral  security  for  contemporaneous  and  subse- 
quent loans  from  him  to  the  institution.  They  subsequently  passed  to  his  assignee, 
who  refused  to  surrender  them  upon  denuMid.  Proceedings  in  equity  were  instituted 
on  June  11,  1891,  by  me  to  secure  the  recovory  of  the  stock  on  the  ground  that  its 
transfer  to  Bardsley  was  a  fraud  u])on  the  other  creditors  of  the  bank.     They  are 

still  pending.  . 

The  value  of  the  stock  actually  in  my  hands  upon  the  above  estimates  would  be — 

2,209  shares  Sea  Girt,  $60 $147,277.00 

655      ''      Spring  Lake,  $22.50 14,737.50 

400       "  ''  "       (in  question),  $22.50 9,000.00 

Total 171,014.50 

The  value  of  the  stoek  which  is  the  subject  of  controversy  with  the 
Bardsley  assigned  estate  may  be  stated  as  follows: 

2,380  shares  Sea  Girt,  $60 162,808.00 

2,000      *'       Spring  L:ike,  $22.50 45,000.00 

207, 800. 00 

Total  value  of  all  the  above  stock 378, 814. 50 

It  is  of  course  impossible  to  approximate  even  the  amount  which  the  trust  will  ul- 
timately realize  from  these  assests  in  view  of  the  jjending  litigaticm.  The  nearest  I 
am  able  to  approach  it  is  the  statement  above  submitted. 

Very  respectfully, 

•  Robert  M.  Yardley, 

Beceiver, 

By  the  Chairman  : 
Q.  I  call  your  attention  to  Exhibit  21  of  this  date,  bein^  a  trial  bal- 
ance of  the  stock  ledger.    Will  you  please  state  what  the  exact  signifi- 


%\ 


422 


INVEf?TIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


423 


Nl 


cauce  of  it  is?  Is  that  a  list  of  names  of  persons  supposed  to  be  share- 
holders f — A,  This  is  a  statement  of  the  stock  account  as  it  appears  on 
the  stock  ledger  at  the  time  the  receiver  took  possession,  and  it  shows 
the  names  of  each  shareholder  and  the  number  of  shares  to  which  he 
was  entitled. 

Q.  The  total  number  of  shares  foots  up  now  how  mauyf — ^A.  Ten 
thousand  two  hundred  and  seventy. 

Q.  And  that  is  how  much  in  excess  of  the  legitimate  issue  of  stock  to 
the  bank? — A.  There  should  have  been  only  10,000  shares,  and  this 
shows  an  overissue  of  270  shares  by  the  stock  ledger. 


TESTIMONY  OF  C.  J.  STODDARD. 

0.  eT.  Stoddard,  sworn  and  examined. 

By  the  Chairman  : 

Q.  Did  you  receive  a  letter  from  the  Comptroller  under  date  ot  April 
22,  1892,  addressed  to  you,  being  Exhibit  14  of  this  date,  and  calling 
for  coi)ies  of  certain  papers  f — A.  Yes,  sir. 

Q.  And  did  you  make  those  copies'? — A.  Yes,  sir. 

Q.  And  have  they  been  i)roduced  here! — A.  Yes,  sir;  to  the  best  of 
my  knowledge  and  belief  everything  has  been  produced  here. 

Q.  Y^ou  made  copies  of  everything  you  could  Hudt — A.  Y"es,  sir; 
everything,  with  the  exception  of  the  corresjmndeuce  to  and  from  the 
receiver. 

Q.  You  assisted  Mr.  Cate,  of  this  committee,  in  the  examination  of 
this  correspondence? — A.  1  did. 

Q.  And  you  prepared  under  his  direction  copies  of  the  correspond- 
ence which  have  been  read  by  the  Comptroller  this  morning  ? — A..  Yes, 
sir ;  such  as  he  selected. 

Q.  And  all  he  selected  ? — A.  Yes,  sir. 

Q.  It  has  been  stated  here  by  some  of  the  other  witnesses  that  they 
delivered  to  you  copies  of  the  papers  called  for  by  the  letter  addressed 
to  the  Comptroller? — A.  Yes,  sir. 

Q.  Have  those  copies  been  produced  here? — A.  They  have. 

Q.  You  have  attended  this  examination  and  you  have  gathered  to- 
gether this  correspondence  and  documents,  and  it  has  all  been  pro- 
duced?— A.  Yes,  sir. 

Q.  You  are  the  Mr.  Stoddard  who  went  to  Philadelphia  under  in- 
structions from  the  Comptroller  in  March,  1891,  and  assisted  Mr.  Drew 
in  regard  to  taking  care  of  the  bank  and  its  business? — A.  Yes,  sir. 

Q.  About  how  long  were  you  there? — A.  Abcmt  eight  days. 

Q.  Can  you  tell  us  the  dates  between  which  you  were  there? — A. 
I  left  Washington  for  Philadelphia  on  the  evening  of  IVIarch  20,  and  I 
arrived  in  l*hiladelphia  at  9  o'clock  next  morning.  I  think  the  20th 
was  on  Friday.  I  arrived  Saturday  morning  and  I  was  with  Mr.  Drew 
continuously,  with  the  exception  of  being  over  here  seeing  the  Comp- 
troller on  two  Sundays. 

Q.  The  bank  had  been  closed  at  that  time? — A.  Yes,  sir;  it  was 
closed  on  the  morning  of  March  20. 

Q.  State  what  you  did  to  assist  Mr.  Drew? — A.  The  Comptroller  of 
the  Currency  on  the  forenoon  of  the  day  of  the  closing  of  the  bank 
advised  me  of  its  closing  and  showed  me  a  telegram  from  Mr.  Drew  to 
the  etVect  that  a  receiver  should  be  immediately  ap])ointed  and  that  he 
needed  assistance.    Later  in  the  day  he  instructed  me  to  go  over,  and 


he  gave  me  a  letter  which  was  simply  to  the  effect  (I  think  it  has  been 
read  in  evidence)  that  I  was  to  assist  Mr.  Drew  in  reference  to  his 
administration  and  examination  for  a  limited  time.  When  I  arrived  at 
the  bank  I  expected  to  find  a  crowd  of  people,  but  there  were  but  very 
tew.  I  found  Mr.  Drew  waiting  for  me.  We  had  some  conversation 
with  reference  to  the  claims  of  creditors.  During  the  time  I  was  there, 
questions  relating  to  the  assets  of  the  bank  and  claims  were  referred  by 
Mr.  Drew  to  me,  and  I  think  without  exception  I  made  answers  to  them, 
considering  myself  in  the  same  position  that  I  would  be  if  I  were  at  my 
desk  in  the  office. 

Q.  What  are  your  duties  while  you  are  at  the  desk?— A.  I  am 
responsible  for  the  correspondence  with  receivers.  I  originate  the  cor- 
respondence with  the  receivers  with  respect  to  the  administration  of 
their  trusts  under  the  immediate  supervision  of  the  Comptroller.  I 
also  gave  information  as  to  how  the  trust  was  to  be  managed,  and  in 
many  other  ways  as  to  the  supervision  of  many  of  the  matters  which 
were  continually  arising  with  respect  to  bookkeeping,  etc. 

Q.  How  long  have  you  been  in  the  Comptroller's  office?— A.  Since 

January,  1875. 

Q.  You  say  you  originate  the  correspondence.  Do  you  mean  that 
letters  from  receivers  came  to  your  desk?— A.  They  came  to  the  Comp- 
troller, and  being  marked  by  him  they  then  come  to  me. 

Q.  You  draft  answers  to  them?— A.  I  do.  If  there  is  anything  more 
than  the  ordinary  course  of  business  in  them  I  consult  the  Comp- 
troller. 

Q.  The  ordinary  work  you  do  yourself? — A.  Yes,  sir. 

Q.  You  answer  letters  yourself  ?— A.  Yes,  sir. 

Q.  And  in  these  matters  you  prepare  letters  and  submit  them  to  the 
Comptroller?— A.  I  consult  with  him  first,  generally,  before  writing. 

Q.  Y^ou  got  to  the  Keystone  Bank  on  the  morning  of  the  21st  of 
March? — ^A.  Yes,  sir. 

Q.  What  was  it  that  you  then  proceeded  to  do?  What  investigation 
did  you  make  of  the  books?  That  is  what  I  want  to  get  at.— A.  I  first 
advised  Mr.  Drew  as  to  the  preparation  of  his  schedules. 

Q.  What  did  you  tell  him  about  that?— A.  I  insisted  upon  their  im- 
mediate preparation.  He  had  several  gentlemen  who  had  been  assist- 
ing,him  and  who  had  been  placed  in  the  bank  some  time  previous,  and 
had  at  that  time  brought  the  books  up  so  that  they  were  in  a  fair  con- 
dition to  be  transcribed— that  is,  so  far  as  the  general  accounts  are 
concerned,  but,  so  far  as  the  individual  ledgers  were  concerned,  they 
had  not  been  balanced,  and  I  went  and  examined  those  books. 

Q.  Examined  what  books?— A.  The  individual  ledgers. 

Q.  You  say  that  was  the  first  thing  you  did?— A.  Yes,  sir. 

Q.  What  did  you  discover  in  the  individual  ledgers?— A.  So  far  as 
the  individual  ledgers  are  concerned  they  had  not  been  paged  and 
many  accounts  had  not  been  balanced.  Mr.  Drew  had  already  started 
in  some  of  the  employes  balancing  those  books.  I  also  suggested  that 
he  call  in  inunediately  the  pass  books,  in  oinier  that  they  might  be  re- 
conciled and  retained  until  a  receiver  took  possession,  who  only  had 
authority  to  settle  them.  I  also  told  him  to  immediately  notify  the 
persons  who  were  charged  with  overdrafts,  in  order  to  ascertain  what 
their  condition  was,  and  whether  it  was  true  that  there  had  been  over- 
drafts, and  if  so,  to  demand  immediate  payment  from  those  who  were 
so  charged.  Mr.  Jones  was  continously  presenting  questions  to  me 
with  resjiect  to  the  general  accounts. 

Q.  What  do  you  mean  by  the  ^' general  accounts?"    I  know,  but  I 


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INVESTIGATION  OF  NATIONAL  BANKS. 


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want  the  explantation  to  go  into  the  record. — ^A.  The  balances  or 
amounts  of  the  individual  accounts.  Take,  for  instance,  the  individual 
ledgers  first.  Of  course  the  general  account  would  show  the  total 
amount  due  the  depositor.  Take  the  discount  book,  whose  footings 
will  show  how  much  money  the  bank  has  loaned  j  and  in  general  the 
ledger  accounts  the  ledger  of  the  bank  ought  to  correspond  with  the 
reports  to  the  Comptroller. 

Q.  What  kind  of  books  do  they  have?  Take  the  history  of  the  indi- 
vidual deposit  account;  how  is  that  kept? — A.  I  think  there  were  six 
separate  ledgers. 

Q.  There  was  a  book  of  original  entry  of  some  sort? — A.  The  entries 
came  from  the  receiving  teller. 

Q.  Was  there  a  book  kept  by  him? — A.  Yes,  sir. 

Q.  Did  you  examine  that  book? — A.  No,  sir;  not  thoroughly. 

Q.  The  receiver's  and  the  teller's  book  went  to  the  clerk  in  charge  of 
the  individual  ledgers? — A.  Yes,  sir;  that  he  might  see  and  examine 
them.  Those  books  are  called  "  ticklers,''  and  usually  the  entries  are 
made  in  pencil.  Deposits  are  represented  by  deposit  slips,  and  those 
would  go  to  the  individual  bookkeej)er. 

Q.  I  am  asking  about  the  particular  usage  in  that  bank. — A.  That  I 
could  not  explain,  for  I  did  not  go  there  for  that  purpose. 

Q.  From  what  sources  were  entries  made  upon  the  individual  ledg- 
ers?— A.  I  would  not  like  to  say  what  the  general  practice  was.  I  pre- 
sume it  was  the  usual  practice  in  banks. 

Q.  You  did  not  investigate  far  enough  to  know  how  the  ledger  entries 
were  posted? — A.  Not  by  personal  examination. 

Q.  Do  you  understand  it? — A.  I  think  so.  A  clerk  there  made  a 
thorough  examination  of  the  transfers  and  transcribed  the  different 
transactions. 

Q.  Did  you  examine  the  individual  ledgers,  so  as  to  enable  you  to 
say  whether  they  were  perfect  or  whether  pages  had  been  abstracted  ? — 
A.  No,  sir. 

Q.  Did  you  learn  that  any  portion  of  the  leaves  had  been  cut  out? — 
A.  1  was  so  told. 

Q.  You  did  not  look  to  verify  that  statement?— A.  No. 

Q.  Did  you  understand  from  anybody  what  pages  were  missing? — A. 
No.  sir.  At  that  time  Mr.  Drew  had  learned  that  Lawrence  had  done 
it.  My  information  came  fiom  Jones,  and  the  individual  ledger  having 
been  torn  it  was  impossible  to  discover  it. 

Q.  I3id  you  examine  the  individual  ledger  to  see  whether  that  had 
been  affected?— A.  Yes,  sir;  I  turned  over  a  number  of  the  pages. 

Q.  Did  you  discover  whether  there  had  been  any  entries  made  in  there 
in  lead  pencil? — A.  No,  sir. 

Q.  Did  you  discover  that  any  balances  had  been  forced  on  the  pages 
of  that  ledger?— A.  No,  sir. 

Q.  In  addition  to  the  individual  ledgers,  what  books  were  there? — 
A.  The  discount  book,  in  charge  of  Mr.  Devine. 

Q.  He  was  the  discount  clerk?— A.  Yes,  sir;  he  was  retained  by  Mr. 
Drew.  Numerous  questions  were  put  to  me  by  him  as  to  his  duty,  and 
how  he  would  deal  with  the  bills  receivable,  and  the  entries  in  parti- 
cular cases,  but,  in  general,  the  questions  propounded  to  me  were  such 
as  concerned  the  bank  after  its  suspension. 

Q.  What  were  the  questions  that  were  presented  to  you?— A.  For 
in  stance,  the  accounts  of  corresponding  banks  where  the  Keystone  Bank 
had  sent,  prior  to  the  suspension,  certain  items,  and  also  certain  items 
sent  after  suspension.    They  were  inquiries  as  to  what  the  legal  status 


was.  In  case  the  Keystone  Bank  owed  another  bank,  whether  they 
should  retain  all;  and  questions  similar  to  that.  Then  there  were 
people  coming  in  to  pay  their  notes,  and,  having  balances,  wished  to 
take  them  out  and  have  a  settlement  made.  They  wanted  to  know  what 
their  authority  was  in  such  matters,  and  with  respect  to  bills  receivable 
falling  due  at  the  clearing  house  and  the  clearing  house  failing  to  pro- 
test them,  and  what  should  be  done  about  it,  etc.  Persons  who  were 
depositors  having  balances  to  their  credit  and  being  liable  upon  notes 
which  had  fallen  due  after  the  suspension — they  wanted  to  pay  the 
notes,  but  wanted  the  deposits  to  ai)ply  on  them  and  wanted  to  know 
whether  that  could  be  done. 

Q.  Did  you  examine  the  general  ledger  of  the  bank? — A.  Not  par- 
ticularly. 

Q.  The  general  ledger  was,  I  suppose,  the  account  between  the  cashier 
and  the  bank? — A.  I  could  not  say.  I  was  busy  answering  questions 
all  the  time  and  consulting  the  people  who  came  in  who  were  interested 
in  the  bank,  being  creditors  or  debtors.  I  did  not  consider  that  I  was 
there  to  make  examination  of  the  books.  I  was,  however,  interested 
in  the  stock  ledger,  because  it  contained  an  overissue  of  stock.  I  spent 
two  days  on  that. 

Q.  State  what  you  discovered  about  that. — A.  I  think  on  Tuesday 
or  Wednesday  after  I  arrived  Mr.  Drew  informed  me  (and  Mr.  Marsh 
also  intimated)  that  it  was  expected  that  a  large  block  of  stock  could 
be  recovered  from  some  one,  and  that  it  should  be  in  the  bank,  but  the 
exact  number  of  shares  were  not  known,  and  no  examination  had  been 
made  of  the  records  of  the  bank  in  that  respect.  It  was  represented 
that  Mr.  Samuel  B.  Huey,  as  attorney  for  the  Lucas  estate,  was  the 
])erson  who  could  deliver  these  shares,  but  that  he  objected  to  doing  so, 
claiming  that  a  part  of  the  stock  was  not  legitimately  in  the  i^ossession 
of  the  party  holding  it.  During  the  first  part  of  that  week  Mr.  Marsh 
was  in  and  out  of  the  bank  a  great  many  times,  and,  as  I  understood, 
was  continually  api)roaching  Mr.  Wanamaker  with  respect  to  these 
identical  shares  of  stock,  but  that  it  was  claimed  that  they  were  not  in 
his  i)ossession. 

Q.  In  whose  possession? — A.  Mr.  Wanamaker's  possession.  Finally 
Mr.  Huey  came  to  the  bank,  and  in  a  conversation  with  Mr.  Drew  in 
my  presence  said  he  had  a  nut  to  crack  in  respect  to  that  stock,  which 
was,  as  I  remember  it,  substantially  that  the  records  of  the  bank  did 
not  disclose  any  more  than  10,000  shares  issued  to  i)er8ons  who  were 
entitled  to  them  legitimately,  and  that  the  stock  he  held  was  part  of  it 
and  belonged  to  the  10,000  shares,  and  thatheproi)osed  to  retain  them 
unless  it  could  be  shown  that  they  were  not  legitimate.  1  then  told  Mr. 
Drew  I  would  like  to  make  an  examination  and  called  upon  him  to  fur- 
nish the  stock  book.  For  a  long  time  it  could  not  be  found,  and  Mr. 
Marsh  was  asked  rei)eatedly  to  furnish  it.  I  myself  searched  all  over 
the  bank,  and  I  suppose  handled  every  book  in  it.  Finally  Mr.  Marsh 
delivered  it  to  me. 

Q.  Do  you  know  where  he  got  it? — A.  No,  sir;  I  do  not. 

Q.  It  was  not  in  the  bank,  so  far  as  you  knew? — A.  No,  sir. 

Q.  You  had  access  to  the  files  and  the  books? — A.  Yes,  sir;  I  had 
searched  everywhere  for  it.  It  was  supposed  to  have  come  from  behind 
or  from  under  a  desk.    However,  I  got  the  stock  ledger. 

Q.  Was  the  stock  ledger  found  in  that  way,  or  was  it  the  book  with 
the  scrip? — A.  It  was  the  stock  ledger.  The  canceled  scrip  were  pasted 
in  the  book  in  the  proper  places.  Those  were  all  there.  The  stock 
ledger  was  missing.    I  made  a  transcript  of  that  stock  ledger  and  a 


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INVESTIGATION  OF  NATIONAL   BANKS 


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transcript  of  the  stub  book  for  the  purpose  of  comparison,  and  I  think 
the  record  I  made  is  in  the  receiver's  hands.  I  found  that,  either  from 
the  stock  book  or  the  stub  book,  there  were  upwards,  if  I  remember 
correctly,  of  12,300  shares.  There  was  only  a  difference  of  about  70 
shares  between  the  two  books.  Mr.  Drew  immediately  telephoned  Mr. 
Huey  to  come  up,  and  he  did  come  the  next  day  or  the  day  after,  and 
upon  beinji"  shown  this  transcript  and  my  stating  to  him  the  thorough 
examination  I  had  made,  showing  him  the  figures,  etc.,  he  pulled  the 
certificates  out  of  his  pocket  and  delivered  them  to  me  personally,  he 
calling  them  off  and  I  writing  them  up,  and  he  drew  a  receipt  to  sign. 

There  was  one  other  thing  that  Mr.  Huey  was  doubtful  about,  and 
that  was  turning  over  those  shares  because  there  were  three  places 
blank  on  the  stubs. 

Q.  You  say  there  were  three  places  blank? — A.  Yes;  there  were  vari- 
ous irregularities.  I  believe  there  had  been  no  entries  in  the  stock 
ledger  for  upward  of  a  year. 

Q.  In  regard  to  those  three  i)laces,  did  you  find  the  certificates  that 
corresponded  to  the  blanks? — A.  No,  sir;  during  my  examination,  Mr. 
Hayes,  who  was  about  the  place,  brought  to  me  one  or  two  certificates 
that  he  found  about  his  desk,  and  Mr.  Jones  brought  me  50  shares  that 
he  found. 

Q.  Were  they  blank  certificates? — A.  No,  sir;  they  were  made  out  to 
parties. 

Q.  Do  you  remember  to  whom? — A.  No,  sir;  I  felt  that  there  might 
be  a  great  many  fictitious  names  in  the  certificates.  I  had  great  difti- 
culty  with  them.  It  would  have  been  easier  if  they  had  been  regular 
cancellations,  but  the  record  was  incomplete. 

Q.  The  stubs  did  not  show  it? — A.  Some  did,  and  some  did  not. 

Q.  There  was  of  course  on  those  stubs  the  line,  "  issued  for,"  which 
was  printed,  and  then  a  blank  space? — A.  Yes,  in  many  instances  there 
was  nothing  filled  in  in  that  blank  space  on  the  stub.  I  could  narrate 
a  great  deal  that  occurred,  but  I  do  not  know  that  you  would  care  to 
hear  it. 

Q.  We  want  to  hear  it  all. — A.  During  this  time  there  were  constant 
interviews. 

Q.  Have  you  gotten  through  with  the  stock  business? — A.  Mr.  Marsh 
had  represented  all  this  time  that  there  was  some  source  from  which 
4,000  shares  were  to  come.  My  impression  was  he  looked  to  Yard  for 
a  number  of  those  shares;  but  during  my  stay  they  did  not  turn  up. 
There  was  nothing  in  it.  On  several  occ^asions  Mr.  Marsh  undertook 
to  figure  up  the  assets,  when  x)eople  would  come  in  who  were  sup])osed 
to  be  interested  in  the  purchase  of  the  assets,  looking  toward  a  resumj)- 
tion  of  the  business.  Mr.  Marsh  would  prepare  a  statement.  I  think 
he  made  it  as  high  as  $1,800,000  assets  at  one  time,  always  including 
the  Huey  stock  and  4,000  shares  besides  as  reducing  the  liability.  Mr. 
Marsh  was  exceedingly  anxious  all  the  time  after  my  arrival  to  know 
whether  1  had  any  information  as  to  his  probable  arrest;  and  he  ap- 
proached me  i)rivately  from  day  to  day  several  times,  and  would  come 
to  me  when  he  could  catch  me  apart  to  ask  me  the  question.  He  stated 
that  he  did  not  propose  to  run  away;  that  he  had  committed  grievous 
faults,  and  that  he  was  ready  to  take  his  punishment.  He  was  con- 
tinually asserting  that. 

Mr.  Drew  was  advising  him  in  the  matter,  and  stating  that  if  he  was 
guilty  it  would  be  shown.  But  it  seemed  to  me  that  when  Mr.  Marsh 
was  asked  any  direct  question  as  to  who  was  at  fault  aside  from  him- 
self, that  he  had  nothing  to  say.    He  was  complaining  about  some- 


body who  had  deserted  him  in  his  hour  of  trouble  without  mentioning 

any  names. 

At  the  time  the  dispatch  mentioned  in  the  evidence  was  received 
with  respect  to  Marsh's  arrest,  Mr.  Drew  was  at  a  great  loss  to  know 
what  it  meant,  and  was  inclined  not  to  tell  me  anything  about  it.  The 
district  attorney  brought  it  in,  and  afterward  Mr.  Drew  showed  it  to 

Q.  To  what  dispatch  do  you  refer?— A.  The  dispatch  from  the  De- 
partment of  Justice  (the  Attorney-General)  directing  that  Marsh  b  e 
not  arrested  until  further  orders,  or  something  of  that  sort.  I  explained 
it  in  this  way,  that  criminal  prosecutions  belonged  to  the  Department 
of  Justice,  and  the  Comptroller's  duty  ended  in  furnishing  evidence  of 
everything  in  his  possession  and  becoming  a  willing  witness  as  well  as 
the  examiner.  Undoubtedly  there  was  a  very  good  reason  for  it;  and 
I  could  see  myself  that  if  there  was  any  prospect  of  resuscitating  the 
bank  Mr.  Marsh  could  explain  things  that  others  could  not,  and  it 
would  be  well  to  have  him  there. 

Q.  You  were  there  at  the  time  the  stock  was  finally  surrendered?— 
A.  Yes,  sir;  I  received  it  myself. 

Q.  There  is  in  the  correspondence  confusion,  saying  that  the  stock 
was  ''  handed  in,"  being  checked  back  and  forth,  and  a  statement  in  a 
subsequent  letter  that  the  stock  "  has  been  surrendered."  There  seems 
to  have  been  a  day  or  two  interval. — A.  That  is  true. 

Q.  Can  you  explain  that?- -A.  The  day  before  I  commenced  an  exam- 
ination of  the  stock  record,  Huey  came  to  the  bank  with  the  stock  in 
his  possession,  but  refused  to  deliver  it  until  it  could  be  showTi  that 
there  was  stock  outstanding  which  would  cover  the  amount  he  had.  I 
was  engaged  on  it  two  days,  and  it  was  only  the  afternoon  of  the  sec- 
ond day  that  I  completed  it. 

Q.  Was  that  stock  ever  given  into  the  possession  of  anybody  by  Huey 
for  the  purpose  of  having  it  compared  with  the  stock  ledger,  or  the 
stock  book,  prior  to  the  time  when  he  made  the  absolute  surrender  of 
itf — A.  Not  to  my  knowledge. 

Q.  You  did  not  have  to  check  it  back  and  trace  the  history  of  the 
various  transactions!— A.  No,  sir;  I  was  utterly  at  sea  as  to  the  general 

procedure. 

Q.  Do  you  remember  how  many  such  certificates  there  were?— A.  I 
could  only  guess.     I  think  there  was  not  more  than  twenty-five  or 

thirty. 

Q.  Do  you  remember  whether  any  were  issued  to  Lucas  directly? — 

A.  1  am  inclined  to  think  not. 

Q.  Do  you  remember  the  names  of  any  persons  to  whom  any  one  of 
those  scrips  were?— A,  I  do  not  recall  any;  but  my  list  is  in  possession 
of  the  i'e(;eiver  to-day. 

Q.  And  it  was  by  that  list  that  the  stock  was  received  and  receipted 
for?— A.  Yes,  sir;  I  drew  it  from  the  certificates  themselves. 

Q.  Was  any  entry  made  upon  the  books  of  the  bank  with  reference 
to  this  stock  at  the  time  it  was  surrendered?— A.  No,  sir;  Mr.  Drew 
proposed  to  cancel  it,  but  I  advised  against  it. 

Q.  Do  you  know  whether  or  not  it  has  been  destroyed  f— A.  I  do  not 
know,  but  I  am  sure  it  has  not  been;  it  was  placed  in  the  vault. 

Q.  Do  you  remember  wliether  the  number  of  shares  surrendered  by 
Mr.  Huey  accounted  for  the  overissue  ?— A.  It  did  not,  according  to  my 

transcript. 
Q.  Do  you  remember  w^hat  was  the  difference  between  the  overissue 


m 


428 


INVESTIGATION   OF   NATIONAL   BANKS. 


■  fc 


'.i:    • 


I',;- 


lit:' 


8hown  by  your  transcript  and  the  stock  surrendered  by  Hueyt — A.  I 
do  not  think  it  was  shown  by  my  figures  as  to  the  number  of  shares. 

Q.  I  call  your  attention  to  the  fac?t  that  in  Exhibit  2,  of  this  date, 
there  is  a  trial  balance  of  the  stock  ledger  of  the  Keystone  National 
Bank,  under  date  of  September  30, 1891,  and  that  it  shows  the  over- 
issue of  270  shares. — A.  Yes,  sir. 

Q.  Can  you  explain  what  that  means? — A.  I  can  not,  any  more  than 
to  say  this,  that  the  posting  from  the  stub  books  had  not  been  matle 
for  sometime,  more  than  a  year,  and  I  think  it  is  more  tlian  likely  that 
the  stub  books  were  relied  uix»n  i»  this  respect.  The  posting  was 
brought  up  to  date,  but  I  do  not  know. 

Q.  Do  you  remember  whether  it  was  the  stock  ledger  or  the  stub 
book  that  showed  the  larger  overissue  f  You  have  said  there  was  a 
difference. — A.  It  was  the  stub  book. 

Q.  You  may  state  anything  ftirther  that  you  discovered  about  that 
bank  or  irregularities  in  it  while  you  were  ther^. — A.  Before  I  left  it 
began  to  develo})  from  day  to  day  that  persons  charged  with  overdrafts 
did  not  owe  the  bank  anything,  and  the  overdraft  account  was  largely 
reduced.  Mr.  .lones  also  called  ray  attention  to  the  irregularities  with 
respect  to  the  duebill  account  and  the  expense  account,  into  which  a 
great  many  items  were  dumped.  It  can  not  be  otherwise  accounted 
lor,  but  I  made  no  memorandum  in  any  of  those  matters  as  they  oc- 
curred. 

Q.  You  have  heard  of  an  item  of  some  $400,000  or  $500,000  due  the 
clearing-house  from  this  bank  in  January,  1891,  and  not  included  in 
the  statement  of  the  examiner  made  under  date  of  January  24, 1891  f — 
A.  Yes,  sir. 

Q.  While  you  were  there,  did  anything  develop  with  regard  to  the 
clearing-house  certificates  and  the  debt  of  the  Keystone  National  Bank 
with  reference  to  that  item? — A.  Yes,  sir.  I  knew  at  the  time  what 
the  debt  due  to  the  clearing  house  amounted  to,  and  also  the  amount  of 
the  assets  pledged  by  the  bank  to  secure  the  loan ;  and  I  also  was  in- 
formed as  to  the  pledge  of  $1(M),000  of  stock  of  the  Traction  Kailroad 
Company,  I  think  located  in  Baltimore,  as  additional  security — not  for 
the  loan,  but  for  the  daily  balances  against  the  Keystone  National 
Bank.  While  1  was  there,  a  messenger  came  from  the  Clearing  House 
Association  demanding  the  return  of  a  receipt  which  had  been  given  to 
the  Keystone  National  Bank  by  the  association  for  this  stock  or  bonds, 
whichever  it  was,  and  it  was  ascertained  by  Mr.  Drew  that  the  inten- 
tion of  the  Clearing  House  Association  was  to  sell  that  security.  The 
examiner  said  he  knew  no  reason  why  it  should  not  be  delivered.  Sev- 
eral i)er8ons  sitting  there  said  that  the  receipts  should  not  be  delivered, 
and  turned  to  me  to  ask  the  question.  I  said,  "No,  because,  jis  1  un- 
derstand it,  that  security  was  for  the  purpose  of  covering  any  <leticit  in 
the  daily  balances  as  between  the  bank  and  the  Clearing  House  Asso- 
ciation." 

It  was  also  developed  that  if  the  stock  was  to  be  put  upon  the  mar- 
ket at  that  time,  it  would  be  at  a  sacrifice  of  1  or  2  cents,  which  would 
make  some  difference.  Mr.  Drew  finally  delivered  that  receipt  upon 
signing  and  sending  a  message  to  the  clearing  house,  which  was  dictated 
by  me,  to  the  effect  that  if  the  clearing  house  disposed  of  that  security 
that  it  would  be  at  its  own  peril,  and  that  the  trust,  if  a  re^*.eiver  was 
appointed,  would  waive  no  legal  rights  that  it  might  have  to  the  recov- 
ery of  it. 

I  understood  that  the  Clearing  House  Association  did  sell  that  stock, 
and  applied  the  proceeds  upon  the  general  account  of  the  bank. 


INVESTIGATION   OF   NATIONAL   BANKS. 


429 


Q.  Do  you  know  where  the  Keystone  Bank  acquired  its  right  to 
pledge  this  stock?— A.  No,  sir;  I  did  not  learn  where  it  came  from. 

Q.  Did  you  see  anything  in  the  books  of  the  bank  which  mdiciUcd 
its  ownership  of  that  stock  in  any  way  ?— A.  No,  sir. 

Q  While  vou  were  there,  did  anything  develop  about  the  certificates 
or  duebills  (I  forget  which)  issued  to  Bardsley!— A.  No,  sir;  "<>  more 
than  it  was  referred  to  during  an  interview  with  Bardsley.  At  the 
bank  Bardsley  first  sent  over  some  one  connected  with  his  office  to  get 
a  return  of  moneys  deposited  by  him  in  the  afternocm  of  March  10,  and 
the  examiner  refused  to  deliver  the  money.  He  then  came  over  him- 
self and  insisted  upon  its  return.  He  was  not  i)ereiuptory  in  his 
demand,  but  claimed  that  tlie  money  belonged  to  him,  and  demanded 
its  return.  During' that  conversation  1  think  some  items  of  duebills 
were  referred  to,  but  not  to  anv  account  of  his  represented  by  the  due- 
bill  account.  The  only  relation  it  conhl  possibly  liave  had  would  be  to 
the  duebill  account  carrie<l  on  the  books  of  the  bank.  , «      . 

Q.  The  bank  had  a  book  in   which  these  duebills  were  printed?— A. 

Y^cK   sir 

q.  There  is  a  stub  to  that  t—A.  Yes,  sir. 

Q.  Did  yon  examine  that  book?— A.  No,  sir;  I  saw  some  of  the  due- 
bills  lying  alumt  the  bank.  ,    .     ,,      ,,       4      u 

Q.  Were  those  you  saw  lying  about  the  bank  in  1  dank?— A.  Nmie 
were  filled  up.  1  supposed  they  had  gone  through  the  clearing  house 
and  had  been  returned  to  the  bank. 

Q.  Were  they  canceled?— A.  1  don't  remember  seeing  any  that  were 

canceled.  , 

q.  Where  did  you  see  them?— A.  I  think  in  Jcmes's  possession. 

Q.  Among  the  vouchers  of  the  bank?— A.  Yes,  sir;  among  the  papers 

he  was  handling.  ,     ,  .,  i  i  n 

Q.  Then  this  large  account  for  several  hundred  thousand  dollars, 

which  Mr.  Bardsley  claimed  to  have  aUowed  the  bank  to  have  because 

he  had  duebills,  was  not  subjected  to  examination  ?— A.  No,  sir.    Such 

an  item  did  not  appear  on  any  account  that  I  saw. 

q.  It  developed  to   be   something  like  $700,000?— A.  It  was  over 

.i!9(m,(M)0.  ^  ^     n»      A     ^f 

().  There  never  was  anything  indicated  about  that  at  all  .—A.  My 
recollection  is,  this  duebill  account  varied  on  certain  dates,  and  a  tran- 
script showed  some  times  below  and  sometimes  upward  of  a  hundred 
thousand  dollars.    It  was  something  lik<^  that. 

Q.  State  auy  other  discovery  that  ycm  made  while  you  were  there,  or 
any  other  information  vou  acquired  as  to  the  bank,  of  its  transactions.—- 
A.  At  various  times  there  seemed  to  be  a.  very  earnest  effort  by  several 
of  the  directors,  most  of  whom  who  were  present  nearly  every  day; 
and  1  heard  McFadden  say  that  he  would  be  willing  to  put  in  ».)0,()00 
if  somebody  else  would  also  be  willing  to  do  likewise.  He  was  very 
bitter  against  some  one  whom  he  thought  had  Avrecked  the  bank. 

(,>.  Who  was  this  person  whom  he  thought  had  wrecked  the  bank  .— 
A    That  was  not  discussed. 

Q.  You  never  heard  the  name  of  any  person  in  connection  with  thati 
—A.  No,  sir.     Mr.  McFadden  never  mentioned  anyone,  but  he  wa^^  very 

piofane  in  si)eaking  of  the  rascals.  ^  t»,     ^r      ,  «      * 

q.  Did  he  make  these  remarks  in  the  presence  of  Mr.  Marsh?— A. 

Yes  sir 

(/.  Aiid  was  a  re|>ly  made  to  him  by  Marsh  in  any  way?— A.  No,  sir. 
That  would  be  one  of  tlie  times  when  he  wouhl  be  still. 

Q.  Was  anything  said  which  would  enable  you  to  surmise  as  to  who 


V 


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430 


INVESTIGATION    OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


431 


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'ill 


had  wrecked  the  bank! — ^A.  Well,  Mr.  Marsh  laid  a  great  deal  of  blame 
upon  Mr.  Lucas. 

Q.  Was  there  anything  said  to  you,  or  in  your  presence,  by  which 
you  were  enabled  to  identify  the  person  against  whom  these  gentlemen 
were  making  complaints? 

^Ir.  IJiiosii  s.  That  can  be  answered  yes  or  no.  If  it  is  answered 
yes,  you  can  ask  him  further. 

A.  No. 

The  Chairman.  Then  you  were  enabled  to  form  no  oi)inion  as  to  the 
person  whom  these  gentlemen  connected  with  the  bank  and  its  wreck- 
ing from  conversations  which  you  heard  f 

A.  1  would  like  to  recall  the  i>recise  words  which  I  heard  Mr.  Marsh 
use  with  respect  to  his  knowk'dge  of  his  inheritance.  It  was  to  the 
eliect  tliat  he  did  not  know  of  any  misuse  of  the;  stock  beyond  a  cer- 
tain number  of  shares,  and  that  afterwards  he  found  tlmt  there  was 
more  that  had  been  so  used.  That  was  the  imly  individual  wlioso 
name  was  mentioned  in  my  presence  as  being  directly  responsible  for 
the  condition  of  the  bank. 


By  31r.  Spekry  : 

Q.  You  say  that  there  was  nothing  that  would  indicate  this  Bardsley 
deposit! — A.  There  was  no  examination  of  that  kind  in  progress  while 
r<' ;  and  Mr.  Bardsley,  in  his  conversations,  never  claimed 
except  that  portion  of  the  money  Avhicli  he  deposited  before 


ge 


I  was  then 
any  tiling  ex 
the  bank  closed. 

Q.  He  deposited  it  immediately  before  the  closing  of  the  bank,  and 
therefore  claimed  it  on  the  ground  that  the  bank  had  failed  wlien  he 
put  the  money  in? — A.  On  the  ground  that  it  did  not  fairly  enter  into 
the  transaction  of  the  bank  while  open. 

Q.  This  deposit  of  $900,000  was  not  known  to  you? — A.  That  was 
never  mentioned. 

Q.  Was  there  anything  in  the  bank  to  indicate  that  that  money  had 
ever  been  in  the  bank? — A.  No  one  spoke  of  it;  and,  so  far  as  I  knew 
of  the  accounts,  it  was  never  known.  Nothing  of  the  sort  was  ever 
mentioned  to  me  by  Jones  or  Drew.    Jones  was  working  there. 

Q.  You  were  working  at  the  bank,  and  had  the  custody  of  the  bank 
funds? — A.  I  was  assisting  Mr.  Drew  as  to  (piestions  that  arose  respect 
ing  Drew's  duty.  I  think  Drew  never  had  before  then  been  in  charge 
of  an  insolvent  national  bank. 

Q.  Were  you  assistant  to  the  examiner? — A.  I  was  regulating  mat- 
ters relating  to  the  receivership. 

Q.  What  did  the  examiner  do  when  he  ascertained  this? — A.  The  ques- 
tion did  not  come  up.  The  only  thing  1  knew  was  what  was  told  as  to 
Bardsley's  account.  He  had  more  than  $400,000  on  deposit  in  that 
bank,  which  was  in  excess  of  what  he  was  permitted  to  have  under  the 
law  in  a  single  bank. 

Q.  Does  anything  appear  as  to  what  became  of  that  money? — A.  Tt 
was  said  that  he  made  that  excessive  deposit  to  assist  the  bank,  and 
the  question  was  discussed  somewhat  as  to  the  manner  in  which 
Bardsley  was  enabled  to  make  nis  reports.  It  was  shown  that  he  had 
more  than  the  statutory  deposit  in  the  bank. 

Q.  How  much  was  it;  you  say  $450,000?— A.  My  recollection  is  it 
was  supposed  to  be  $100,000  more  than  the  $400,000  allowed  under  the 
statute. 

The  Chairman.  Four  hundred  thousand  dollars  was  the  statutory 
limit. 


ByMr.  Sperry: 

Q.  At  whose  solicitation  did  he  put  the  money  in?— A.  That  was  not 
disclosed.  I  heard  no  talk  as  to  how  that  came  about  any  more  than 
by  an  arrangement  he  deposited  these  moneys  on  the  day  before  the 
bank  closed,  in  order  to  help  settlements  with  the  clearing-house, 
thereby  exceeding  his  limit.  ,       ,     i 

Q.  Did  you  know  whether  the  $200,000  note  of  Mr.  Wanamaker  had 
been  paid?— A.  Mr.  Drew  informed  me  as  to  the  $200,000  Wanamaker 
note,  and  said  that  when  he  discovered  it  he  had  visited  Mr.  Wana- 
maker personally,  informed  him  as  to  the  law,  and  requested  hmi  to 
reduce  it,  and  that  shortly  after  it  was  reduced  $50,000.  I  have  no 
knowledge  as  to  when  it  was  paid. 

Q.  Is  there  anything  in  the  books  to  indicate  as  to  when  it  was 
paid?— A.  I  do  not  know.    I  did  not  examine  the  matter. 

Q.  Do  you  know  whether  it  was  in  fact  examined  by  anybody  to  ascer- 
tain that  fact?— A.  I  understood  from  Mr.  Drew  that  it  was  eventually 

paid  in  full.  «     *     ^r 

Q.  Mr.  Drew  was  the  examiner  in  charge?— A.  Yes,  sir. 
Q.  Did  he  know  when  it  had  been  paid?— A.  If  he  did  I  donotrecol- 

Q.  Were  those  notes  in  the  bank  when  you  were  there?— A.  I  did 
not  examine  the  bills  receivable,  and  I  had  no  knowledge  of  Wanar 
maker's  paper  being  among  the  assets.  «      ,     ^^       .       t  ^-^       4- 

Q.  Did  you  see  the  note  among  the  assets?— A.  No,  sir.    1  did  not 

examine  the  assets,  except  the  cash.  *     *    xr      • 

Q.  Did  it  come  to  your  knowledge  that  they  were  there  f— A.  JNo,  sir. 
I  am  quite  sure  there  was  no  such  obligation  of  Mr.  Wanamaker  when 

the  bank  suspended.  .         ,  .  ..  ^ 

Q  You  did  not  in  tact,  then,  assist  Mr.  Drew  m  making  up  the  assets 
of  the  bank?— A.  No,  sir;  except  to  explain  to  him  how  it  should  be 
done  and  that  it  should  be  done  immediately. 

Q.  Did  you  do  anything  except  to  advise  him  as  to  what  his  duties 
were? — A.  Principally  that.  ,  ^  . ,      , 

Q.  You  did  not  take  any  hand  in  the  bookkeeping  except  the  draw- 
ing of  the  stock  list?— A.  No,  sir.  ^  ,      * 

Q.  And  you  did  not  take  any  hand  in  marshaUng  the  assets?— A. 

N^o  sir 

Q.  You  did  not  look  into  anything  in  regard  to  the  correspondence  of 
thebaiik,  or  anything  of  that  kind?— A.  No,  sir.  ,    ,    ^  ,,      ^    , 

Q.  How  came  you  to  single  out  and  have  special  control  ot  the  stock 
account?— A.  It  was  in  order  that  they  might  be  surrendered  and  the 
demand  of  Huey  be  complied  with.  «     *     xr 

Q.  You  had  immediate  personal  charge  of  that?— A.  Yes,  sir. 

Q.  Mr.  Drew  did  not  have  anything  to  do  with  that?— A.  He  was 

anxious  as  to  the  result.  . .       „  j 

Q  What  was  Drew  doing  there?— A.  He  was  continually  engaged 
in  conversation  with  creditors  of  the  bank,  and  principally  with  refer- 
ence to  the  plans  of  resumption.  .        ,     ^ 

Q  Did  Mr.  Drew  attempt  to  marshal  the  assets  m  order  to  ascertain 
what  the  condition  of  the  bank  was?— A.  Mr.  Jones  had  received  in- 
structions to  commence  preparation  of  the  schedules  at  the  time  i  lett., 
but  no  considerable  progress  had  been  made. 

Q.  Mr.  Drew  himself  did  not  undertake  that?— A.  Not  personally. 

Q.  What  was  Jones  doing;  assisting  Drew  ?— A.  He  was  m  the  posi- 
tion of  general  bookkeeper  and  had  been  there  for  two  months. 


f 


432 


INVESTIGATION   OF    NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


433 


lit'- 


Q.  Was  Mr.  Drew  attempting  to  ascertain  what  the  actual  condition 
of  the  bank  was  Avhile  you  were  there? — A.  Certainly. 

Q.  Was  it  completed  before  he  left! — A.  No,  sir;  not  in  detail. 
There  were  figures  made  by  him  from  time  to  time  to  exhibit  to  those 
pers<ms  who  showed  an  interest  in  the  resumption  of  the  business  of 
the  bank,  and  the  possible  purchase  of  the  assets,  if  anyone  applied  for 
such  information. 

J^y  Mr.  Brosius  : 

Q.  I  think  you  said  that  the  individual  ledger  was  not  paged? — A. 
That  is  true,  sir. 

Q.  Did  you  observe  whether  the  other  books  of  the  bank  were 
paged? — A.  1  can  not  recall  sufficiently  to  state  positively. 

Q.  Was  your  attention  at  any  time  directed  to  the  previous  practice 
in  regard  to  any  other  individual  ledger  of  the  bank,  so  as  to  sliow 
whether  or  not  they  had  been  paged? — A.  No,  sir;  Mr.  Jones  called 
my  attention  to  it  afterward.  I  think  I  had  noticed  that  one  individual 
ledger  was  not  paged,  and  that  information  came  in  this  way:  there 
was  a  <lit1i<mlty  fouiid  in  balancing  the  accounts  by  a  certain  number  of 
the  employes. 

Q.  You  are  not  able  to  say  whether  this  unpage<l  ledger  was  an  ex- 
ception to  the  other  books  of  the  bank  in  relation  to  that  or  whether 
in  fact  it  was  the  previous  practice  to  have  ledgers  unpaged  ? — A.  1 
can  not  say. 

By  Mr.  Sperky: 

Q.  What  do  you  mean  by  saying  the  book  was  not  paged?  Do  you 
mean  the  pages  were  not  numbered? — ^A.  Yes,  sir;  the  folios  had  no 
number. 

By  Mr.  Brosius  : 

Q.  It  would  be  easier  to  mutilate  a  book  of  that  kind  than  it  would 
be  to  mutilate  a  paged  book;  I  mean  it  would  be  easier  to  abstract 
leaves  from  it? — A.  I  suppose  the  cut  leaf  would  be  the  same,  but  the 
absence  of  a  page  in  a  particular  book  would  immediately  be  discov- 
ered. 

By  the  Chairman: 

Q.  It  has  been  testified  here  (or  has  in  some  way  come  to  my  knowl- 
edge) that  the  le<lger,  or  some  of  the  ledgers  of  the  bank,  were  kept  in 
unbound  sheets;  do  you  know  anything  about  that?— A.  1  have  no 
knowledge  of  that. 


TESTIMONY  OF  WILLIAM  TRENHOLM. 

William  Trenholm,  sworn  and  examined. 

The  Chairman.  I  will  state  for  the  informatifMi  of  the  committee 
that  Mr.  Trenholm  is  here  in  pursuance  of  his  own  request,  made  to  the 
chairman  by  letter.  Directly  after  the  testimony  given  by  Mr.  Sor- 
den,  the  witness  who  stated  that  Mr.  Trenholm's  account  at  the  Key- 
stone Bank  was  overdrawn,  Mr.  Trenholm  informed  me  that  he  wished 
to  appear  b<'fore  the  committee. 

By  the  Chaikman: 
Q.  Where  do  you  reside  t — A.  ^'ew  York  City. 


Q.  You  have  seen  what  purports  to  be  a  copy  of  the  letter  to  Mr. 
Yardley,  receiver  of  the  Keystone  National  Bank,  and  of  the  account 
of  William  Trenholm  with  that  bank? — A.  Yes,  sir. 

Q.  Whatever  statement  you  desire  to  make  in  reference  to  it,  you  can 
proceed. — A.  From  the  fact  that  when  I  was  in  Philadelphia  as  assist- 
ant to  Mr.  Drew  at  the  same  time  that  my  father  was  Comptroller,  I 
would  ask  the  committee  to  put  on  record  copies  of  letters  passing  be- 
tween Mr.  Drew  and  my  father,  relative  to  my  retention  in  Philadel- 
phia after  the  1st  of  June,  1887,  so  as  to  show  that  my  retention  was 
due  to  the  clearing  house,  and  it  was  not  through  any  action  of  the 
Comptroller  of  the  Currency.  I  want  this  to  ap])ear  on  account  of  an 
editorial  which  recently  appeared  in  a  New  York  paper,  accusing  my 
father  of  having  made  a  soft  berth  for  me  in  Philadelphia. 

Q.  Are  those  letters  here? — ^A.  Yes,  sir.  I  have  tliem.  1  have  had 
copies  made  and  they  can  be  sworn  to.  I  have  brought  the  originals 
with  me. 

Q.  Are  these  the  originals? — A.  Those  are  the  originals,  except  a 
copy  of  the  answer  which  I  received  from  the  Comptroller's  office,  which 
I  have  taken  from  a  book,  and  did  not  bring  with  me. 

By  Mr.  Brosius  : 

Q.  Was  your  father  the  immediate  predecessor  of  Mr.  Laeey  as  Comp- 
troller?— ^A.  Yes,  sir. 

By  the  Chairman  : 

Q.  You  say  these  copies  have  been  compared? — A.  Y^es,  sir;  and  I  can 
send  you  an  affidavit  to  that  effect. 

Q.  Did  you  make  the  comparison  yourself? — A.  No,  sir;  I  had  it 
done. 

The  Chairman.  I  think  this  sufficient  identification. 

Mr.  Brosius.  I  have  no  doubt. 

By  the  Chairman  : 

Q.  Look  at  these  letters  and  see  if  you  can  testify  as  to  whether  they 
are  true  copies. — A.  These  copies  were  made  by  my  tyi)ewriter  and 
compared  by  my  bookkeeper.  The  corrections  were  made  after  the 
typewriter  read  them  over.  I  had  them  put  in  this  shape  so  that  they 
could  be  bound. 

Q.  You  are  willing  to  swear  that  they  are  exact  copies  ? — A.  Y^es,  sir. 

The  letters  were  received  and  read  in  evidence  as  follows : 

Philadelphia,  March  o,  1887. 

Dear  Sir  :  Permit  me  to  express  to  you  my  entire  satisfaction  with  the  services  of 
your  son  in  his  work  with  nie  here. 

His  ready  and  intelligent  nnderstandin*]^  of  the  duties  assigned  him  and  his  nipid 
and  accurate  performance  of  them  haA^e  gratified  me  exceedingly  and  secured  for  him 
the  highest  opinion  of  his  abilities  on  the  jiart  of  the  officers* of  such  banks  as  we 
have  visited. 

I  have  already  entrusted  to  him  some  intricate  nnd  important  settlements  both  of 
''cash"  an<l  "accounts,"  in  the  perfoi-mance  of  Avhich  he  has  shown  a  degree  of  ef 
ficiency  not  surpassed  by  many  persons  long  trained  in  the  work. 

I  am  ccmfident  that  by  the  time  the  new  bank  in  New  York  shall  retjuire  his  sers'- 
ices  his  qualifications  will  fully  recommend  him  for  any  position  to  which  he  maybe 
entrusted. 

Meanwhile  I  hope  I  may  be  favored  with  his  assistance.  I  shall  be  sorry  to  part 
with  his  services. 


n\ 


Very  respectfully,  yours, 

Hon.  W.  L.  Trenholm, 

Washington^  D.  C, 


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434 


INVESTIGATION   OF   NATIONAL   BANKS. 


Philadelphia,  May  5, 1887. 

Dear  Sir  :  As  the  time  is  near  when  I  may  expect  that  your  son  will  leave  me  to 
enter  upon  his  new  position  in  the  Western  National  Bank  of  New  York,  I  have 
thoujjht  it  my  duty,  as  it  is  my  very  great  pleasure,  to  testify  to  the  marked  ability 
and  efficiency  which  he  has  shown  in  the  discharge  of  the  duties  assigned  to  him  as 
my  assistant'in  examining  the  national  hanks  under  my  charge.  I  need  not  state 
that  I  should  be  most  happy  to  continue  the  relation  now  subsisting  were  I  convinced 
that  such  a  course  would  not  interfere  with  your  preferences,  or  with  his  best 
interests. 

While  recognizing  the  satisfaction  which  his  services  have  given  me,  I  have,  never- 
theless, refrained  from  encouraging  him  to  remain  with  me,  and  have  advised  him  to 
go  to  New  York,  provided  a  place  should  be  tendered  to  him  congenial  to  his  desires, 
and  in  responsibility  adequate  to  his  abilities  and  experience.  I  have  further  said 
to  him  that  I  should  be  glad  to  have  him  return  to  me,  if  after  a  trial  in  New  York 
he  should  find  it  advisable  so  to  do. 

I  am  contident  that  his  continued  8ervi(;es  in  his  present  capacity  would  be  most 
acceptable  to  the  banks  here.  Confidence  in  his  abilities  and  discretion  has  w(m  for 
him  the  unqualified  regard  and  good  will  of  all  with  whom  he  has  come  in  contact. 

Fully  appreciating  the  delicacy  which  you  feel  on  this  subject,  I  beg  to  suggest 
that  the  past  efficiency  of  his  services  in  the  present  relation,  and  the  obvious  adapta- 
bility for  the  work,  ought,  in  justice  to  him,  to  outweigh  any  objections  of  that 

nature. 

I  write  this  after  no  little  deliberation,  in  the  confident  hope  that  you  will  believe 
me  actuated  by  motives  free  from  selfishness,  either  personal  or  official. 

Whatever  his  choice  may  be  he  will  be  followed  by  the  best  wishes  of  many  reli- 
able friends  he  has  made  here,  and  by  none  more  heartily  than  by  mine. 
Verv  respectfully,  yours, 

W.  P.  Drew. 

Hon.  W.  L.  Trenholm. 


Philadelphia,  May  10th,  1887. 

Dear  Sir  :  Your  letter  of  the  9th  inst.  is  received.  I  am  greatly  pleased  at  the 
prospet  of  retaining  the  services  of  your  son,  as  I  am  persuaded  such  an  agreement 
will  be  of  much  advantage  to  the  receiver,  as  well  as  better  for  him,  both  as  to  duties 
and  prospects,  than  any  merely  clerical  position  in  a  bank. 

I  fear  that  i)erhaps  there  may  be  more  misapprehension  as  to  the  probability  of  the 
Clearing  House,  offioially  as  such,  taking  any  action  toward  securing  his  retention, 
as  such  a  course,  so  far  as  I  know,  would  be  contrary  to  precedent  on  their  part.  An 
earnest  exjiression  of  the  advisability  of  his  retention,  after  his  satisfa<tory  experi- 
ence, would,  I  have  no  doubt,  be  met  gladly,  and  unreservedly  made  individually  by 
the  bank  managers  here,  and  would  be  practically  the  same  thing. 

William  goes  to  Baltimore  via  Washington  to-morrow  to  assist  Mr.  Ferguson  for  a 
few  days  at  the  lattcr's  request,  and  will  explain  further  the  point  I  refer  tx3. 

I  sincerely  trust  that  all  impediments  toward  his  contiu nance  here  will  be  speedily 
and  satisfactorily  removed. 

Very  respectfully,  yours, 

W.  P.  Drew. 

Hon.  W.  L.  Trenholm, 

Comptroller  of  the  Currency,  Washington,  D.  C. 

Philadelphia,  June  1,  1887. 

Sir:  I  hav(^  the  honor  to  submit  for  your  approval  as  assistant  in  examining  the 
national  banks  of  this  district  the  name  of  Mr.  William  Trenholm. 

Mr.  Trenholm  came  here  at  my  request,  in  February  last,  to  assist  me  in  my  Avork, 
with  the  expectation  of  accepting  a  position  which  had  been  tendered  to  him  in 
"The  Western  National  Bank  of  New  York  City,"  then  under  process  of  organiza- 
tion. 

In  the  discharge  of  his  duties  he  has  proved  so  efficient  and  acceptable  that  I  have 
offered  to  him,  subject  to  your  approval,  the  position  of  assistant  examiner. 

This  pro])osition  has  been  made  solely  with  reference  to  his  approved  fitness  for  the 
delicate  and  responsible  duties  involved,  and  I  am  confident  with  the  selection,  re- 
garded by  them  as  of  much  importance,  will  receive  the  approval  of  the  "clearing- 
house committee,"  as  well  as  of  all  other  bank  presidents  here  with  whom,  in  the 
performance  of  his  duties,  he  has  necessarily  been  brought  in  contact. 
Very  respectfully,  your  obedient  servant, 

W.  P.  Drew. 
National  Bank  Examiner. 
Hon.  William  L.  Trenholm, 

Comptroller  of  the  Currency,  Washington,  D.  C, 


INVESTIGATION   OF   NATIONAL   BANKS. 


435 


We,  undersigned,  have  much  pleasure  in  commending  Mr.  William  Trenholm  as 

worthy  of  approval  as  assistant  to  the  national  bank  examiner  for  this  city,  and  we 

believe  that  he  is  fully  qualified  to  perform  faithfully  and  satisfactorily  all  the  duties 

of  that  position,  and  that  he  will  not  disappoint  the  largest  confidence  reposed  in  him. 

Philadelphia,  June  2, 1887. 

G.  Philler,  president  First  Nat'l  Bank  of  Philadelphia.  W.  H.  Rhawn,  presi- 
dent National  Bank  of  Republic  and  sec'y  C.  H.  Association.  G.  M.  Trout- 
man,  president  Central  National  Bank.  S.  F.  Tyler,  president  Fourth  Street 
National  Bank.  ('has.  F.  I>ewis,  president  Bank  of  North  America.  J.  Pat- 
terson, president  WcsUrn  National  Bank,  and  president  of  Clearing  House 
Asso.  of  Philadcliiliia.  S.  M.  Bell,  presidiut  The  Far.iK  r-;  c\u\  M;  ■h.  Xat  ional 
Bank.  .1.  Naylor,  ]>r«  sid(?nt  Hittlitli  Natfonal  Bank.  J.  V.  Watson,  ineyi- 
dent  Consolidation  ISational  Bank. 


I  .Jt^ne  Hth,  1887. 

Sir:  Your  letter  of  the  Ist  instant  is  received,  submitting  the  name  of  my  son, 
Mr.  William  Trei*holm,  for  my  approval,  as  your  assistant  in  examining  the  national 
banks  of  your  district. 

I  have  given  careful  consideration  to  all  that  you  have  said  in  connection  with 
this  mattei,  and  also  observe  that  a  number  of  the  bank  presidents  of  Philadelphia 
have  appended  to  your  letter  a  recommendation  of  Mr.  Trenholm,  on  the  ground  of 
their  belief  that  he  is  fully  qualified  to  perform  faithfully  and  satisfactorily  all  the 
duties  of  the  position. 

In  reply,  you  are  respectfully  informed  that  in  compliance  with  your  wishes,  and 
under  sanction  of  the  recommendation  referred  to,  the  employment  of  Mr.  Trenholm 
meets  with  my  approval. 

While  I  do  not  feel  that  I  am  either  obliged  or  entitled  to  allow  this  gentleman's 
relationship  to  myself  to  stand  in  the  way  either  of  his  employment  or  of  your 
being  acceptably  and  efficiently  assistetl  in  your  official  duties,  yet  it  must  never  be 
forgotten,  even  for  a  moment,  that  both  you  and  he  are  placed  in  a  delicate  position 
toward  this  office,  and  that  there  will  rest  upon  you  both  a  constant  obligation  to 
so  discharge  your  respective  duties  as  to  preclude  all  ground  for  cavil  or  criticism. 
Very  respectfully, 

W.  L.  Trenholm, 

Comptroller. 

W.  P.  Drew,  Esq., 

National  Bank  Examiner,  Philadelphia,  Pa. 

Q.  Is  there  any  further  statement  you  wish  to  make  in  regard  to  the 
matter? — A.  No,  sir. 

Q.  Has  the  receiver  presented  a  <-laim  apiinst  you  for  this  over- 
draft?— A.  In  last  November  I  got  a  letter  fiom  Mr.  Yardley,  making  a 
peremptory  demand  for  $6,900.  That  was  the  first  knowledge  I  had  of 
any  debt  that  Uowed  to  the  Keystone  Bank,  and  I  immediately  turned 
that  letter  over  to  Mr.  Crawford,  my  hiwyer.  He  went  and  saw  the  re- 
ceiver. He  told  Mr.  Yardley  that  if  the  bank  had  a  claim  against  me 
for  any  money  which  had  not  been  dei>osited,  and  against  which  checks 
had  been  drawn  and  paid,  that  1  would  settle  it,  but  that  I  disclaimed 
owing  the  bank  anything,  and  that  I  couhl  prove  it  to  the  satiftiction  of 
Mr.  Yardley  and  the  Comptroller's  oflice.  That  went  on  until  the  pub- 
lication in  a  New  York  paper  of  my  alleged  overdraft,  when  my  lawyer 
decided  it  would  be  necessary  to  let  Mr.  Yardley  bring  suit  in  the  courts, 
and  then  I  could  be  heard.  He  thought  that  would  be  a  better  vindi- 
(iation  than  I  could  get  by  a  settlement  outside.  He  advised  me  to  dis- 
claim any  debt  to  the  bank  whatever. 

Q.  Is  there  anything  further  that  you  desire  to  say? — A.  I  would 
like  to  say  one  thing  more,  and  that  is  that  I  have  assisted  in  but  three 
examinaticms  of  the  Keystone  National  Bank.  The  first  was  in  March, 
1887;  the  second,  I  think,  was  in  either  October  or  November,  1887; 
and  the  third  was  in  February,  1888.  The  following  times  that  the  Key- 
Stone  National  Bank  was  examined  I  was  with  Mr.  Ferguson,  a  new 


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436 


INVESTIGATION   OF   NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


437 


m 


examiner  in  Baltimore.  From  there  I  came  to  Washington  for  some 
four  or  five  days'  holiday.  In  the  following  fall,  when  the  bank  was 
examined  again,  I  was  absent  on  leave  in  Washington;  and  m  the 
spring  of  1887  I  was  taken  ill  while  helping  in  an  examination  of  the 
National  Park  Bank  in  New  York,  which  had  been  given  to  Mr.  Drew. 
For  six  weeks  I  was  in  bed;  and  after  that  I  went  South  for  my  health, 
by  the  direction  of  my  physician.  During  that  time  the  Keystone 
Bank  was  exanuned.  In  November  I  had  resigned,  to  take  effect  No- 
vember 15, 1889.  I  was  then  in  the  South  making  arrangements  to  go 
into  other  business.  I  left  on  the  12th,  and  my  resignation  was  accepted 
on  the  11th. 

By  Mr.  Brosius  : 

Q.  You  were  a  depositor  in  the  bank  at  that  time!— A.  Yes,  sir;  I 
had  an  account  there  in  Max,  1888.  I  had  opened  an  account  there  and 
had  then  made  my  first  deposit.  •  4.     x,     » 

Q.  Mr.  Drew  is  the  bank  examiner  and  you  were  his  assistant  r— A. 

Yes  sir 

q!  Were  you  a  resident  hi  PliiUulelphia  at  that  time? — A.  Yes,  sir. 

At  this  point  the  committee  adjourned. 


WASHINGTON,  D.  C,  June  4,  1892. 

The  committee  having  under  ccmsiileration  the  investigation  of  the 
Keysttnie  Nati<mal  Bank,  of  Philadelphia,  met  at  10  a.  m.,  Hon.  Henry 
Bacon  in  the  chair.  . 

l»resent:  The  chairman,  and  Messrs.  Brosius,  Walker,  Wike,  Dick- 
er son,  and  Henderson. 

TESTIMONY  OF  A.  R.  BARRETT. 

Mr.  A.  K.  Barbett  was  called,  and  testified  as  follows : 

By  the  Chairman  : 

Q.  Where  is  your  residence!— A.  Philadelphia;  or,  rather,  German- 
town.  ^     ^     _,.        ._Q_ 

Q    How  long  have  you  lived  there! — A.  Since  188J.  • 

q!  What  is  your  occupation !— A.  I  am  an  accountant  appointed  by 
the  secret  service  division  of  the  Treasury  Department. 

Q.  How  long  have  you  been  thus  employed!— A.  Since  the  4th  ot 

April,  1891.  ,      .         .     ,     T         ^.     ,        V 

Q.  Prior  to  that  time  what  was  your  business!— A.  I  practiced  medi- 
cine a  few  years,  but  most  of  my  time  has  been  employed  as  an  ac- 
countant since  1865. 

Q  Have  you  been  employed  as  the  chief  of  the  experts  engaged  m 
the  examination  of  the  affairs  of  the  Keystone  National  Bank  of  Phil- 
adelphia?— A.  I  have  been  so  employed  since  about  the  0th  ot  Septem- 
ber, 181)1.  X       •        A        l/T         A       13 

Q  Who  have  you  had  under  you  in  that  matter!— A.  Mr.  A.  i. 
Stewart,  of  the  United  States  Treasurer's  office;  Mr.  Constant,  of  the 
Second  ( \)mptroller^s  office;  Mr.  George  H.  Wood,  of  the  office  of  the 
Comptroller  of  the  Currency;  Mr.  Stern,  wiiose  intitals  I  have  forgot- 
ten who  is  also  in  the  Treasurer's  offi(  e,  and  Mr.  James  P.  P.  Brown, 
who  was  a  nominee  of  the  committee  of  fifty,  and  Mr.  George  H. 


Sheble,  also  a  nominee  of  the  committee.  All  these  gentlemen  were 
not  there  at  the  same  time.  For  instance,  Mr.  Sterne,  I  think,  relieved 
Mr.  Constant;  Mr.  Wood  came  first,  then  Mr.  Constant  was  recalled, 
and  I  don't  remember  whether  any  one  was  sent  in  his  place.  Mr. 
Stewart  was  recalled,  and  Mr.  Stern  was  sent  in  his  place.  Then  Mr. 
Stern  was  recalled,  and  I  have  now  only  Mr.  Wood  from  the  Depart- 
ment. Some  of  those  gentlemen  relieved  others.  I  have  generally 
had  four  men  at  a  time. 
Q.  Employed  on  the  work  of  the  Keystone  National  Bank?— A.  Yes, 

sir. 

Q.  You  have  also  had  charge  of  the  examination  of  the  aHair ;  of  the 
Spring  Garden  National  Bank!— A.  Yes,  sir. 

Q.  You  went  into  the  examination  of  this  bank,  I  believe,  under  the 
authority  of  the  Secretary  of  the  Treasury!— A.  Yes,  sir.  I  was  di- 
rected to  go  into  the  work  and  make  as  complete  and  explicit  an  exam- 
ination as  I  could  possibly  make,  and  without  partiality  to  any  one; 
but  was  directed  simply  to  find  out  everything,  as  far  as  1  could  possi- 
bly do  it.  .        .      ^r  .        • 

Q.  To  find  out  all  of  the  transactions  of  the  bank  t— A.  Yes,  sir;  in 
every  direction,  whoever  it  might  affect— no  matter  who,  no  matter 
what.    Those  were  my  instructions.  •       *     a 

Q.  Was  there  any  limitations  placed  upon  your  instructions  f— A. 

Not  the  slightest.  .       . 

Q.  Will  you  state  in  a  general  way,  also,  without  going  into  partic- 
ulars, what  you  have  done  and  how  far  you  have  progressed  111  carry- 
ing out  those  instructions!— A.  Of  course  when  I  went  into  the  bank 
my  first  idea  was  to  learn  what  the  general  situation  was,  in  order  to 
know  what  line  of  action  to  take. 

By  Mr.  Walker: 
Q.  What  do  you  mean  by  saying  that  you  wanted  to  know  what  line 
of  action  to  take!— A.  To  see  what  the  general  condition  was.     I  could 
not  go  into  the  particulars  until  I  got  an  idea  what  the  general  situation 

q!  What  the  result  was!— A.  Yes,  sir.    Then  I  could  work  on  that 

specific  information. 

Q.  Id  finding  out  the  conditions  which  existed  in  the  affairs  of  the 
bank?— A.  Yes,  sir.  I  started  first  with  the  statement  as  it  was  ren- 
dered by  the  bank  examiner  to  the  receiver,  as  to  the  condition  of  the 
bank  as  he  turned  it  over  to  the  receiver.  When  he  turned  it  over 
there  was  a  shortage  of  $950,000.  That  was  the  situation  in  general 
terms.  As  to  where  that  deficiency  existed,  of  course  there  was  noth- 
ing stated.  That  was  what  I  was  to  find  out.  I  started  in,  as  is  cus- 
tomary in  those  cases  in  examining  almost  all  the  banks,  to  analyze  the 
ledgers,  bills  receivable,  and  the  notes  discounted,  those  being  the 
two  channels  through  which  frauds  are  to  take  place. 

I  (commenced  and  went  backward,  beginning  with  the  report  of  the 
condition  of  the  bank  made  to  the  Comptroller  on  October  2,  1890. 
Having  that  report  before  me  and  analyzing  that,  taking  the  balances 
of  the  individual  ledgers  at  this  i)eriod,  the  balances  of  the  notes  dis- 
C(mnted,  as  show-n  by  the  discount  books  and  ticklers,  and  then  anal- 
yzing the  general  work,  as  well  as  the  teller's  work  on  the  ledgers, 
and  so  on,  taking  the  reports  of  the  bank  examiner  for  a  specific  point 
ea.-h  year,  and  the  reports  of  the  Comptroller  at  a  specific  point  for 
the  years  1888  and  1889.  I  went  back  as  far  as  1882  in  that  mnnner. 
1  soon  found  that  there  seemed  to  be  a  general  plan  which  was  to 


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INVESTIGATION   OF   NATIONAL   BANKS. 


mako  the  appearance  of  the  liabilities  as  small  as  possible,  and  to  make 
the  assets  as  large  as  possible  by  the  falsification  of  accounts,  both 
on  the  general  ledger  and  the  individual  ledgers,  the  bills  discounted, 
and  all  through. 

Q.  Were  those  falsifications  original  entries,  or  were  they  changed 
alter  having  been  entered? — A.  They  were  changes  in  some  instances, 
and  on  the  general  ledger  the  original  entries  were  falsified.  In  many 
instances  entries  were  made  directly  on  the  general  ledger  without 
going  through  the  cash  or  the  auxiliary  books  at  all.  They  were  simply 
put  on  as  original  entries. 

Q.  Without  going  through  the  accounts  of  record? — A.  The  general 
ledger,  instead  of  being  kept  as  a  le<lger,  was  simply  kept  on  loose 
sheets.  These  loose  sheets  could  very  easily  have  been  changed,  and 
were  at  times  changed. 

Q.  You  mean  the  sheets  were  loose  to  be  bound  after  the  rec^ords 
were  made  up? — A.  They  expected  to  bnid  them  up,  but  they  did  not. 
On  one  o(;casion  I  found  an  original  entry  where  they  stopped  in  the 
middle  of  the  week,  for  the  reason  that  the  bank  examiner  came  in, 
and  they  evidently  staid  that  night  and  worked  on  the  books.  We 
traced  that  up. 

By  the  Chairman: 

Q.  Having  told  the  condition  of  the  general  ledger,  please  state  what 
was  the  condition  of  the  individual  ledger?— A.  The  individual  ledger 
I  found  had  been  most  terribly  mutilated,  in  the  first  place,  by  tearing 
out  leaves  so  as  to  destroy  the  accounts  entirely  in  many  instances. 
They  liad  been  torn  out  for  the  ])uri)ose  of  hiding  large  overdrafts  and 
large  balances,  and  in  tracing  the  matter  it  seemed  as  though  this  had 
been  done  at  periods  when  the  bank  examiner  came,  so  far  as  I  could 
judge,  because  I  noticed 'from  the  balances  that  I  got  from  the  bank 
examiner,  in  checking  those  oft",  figures  that  he  did  not  have;  and  in  a 
close  examination  I  found  those  pages  had  been  torn  out  in  some 
instances. 

In  1890  it  had  been  customary  to  paste  those  back,  although  during 
that  year  a  number  of  leaves  were  gone;  but  in  1881)  leaves  were  gone 
entirely;  some  374  pages  were  torn  out  and  were  gone. 

By  Mr.  Cox: 

Q.  When  you  speak  of  mutilations  occurring  about  the  time  the  ex- 
aminers seemed  to  be  there,  that  would  result  in  the  examiners  getting 
a  set  of  figures  totally  diflferent  from  what  would  appear  if  the  record 
had  bi'en  kei)t  correctly? — A.  Yes,  sir. 

Q.  Was  that  not  obvious  to  any  man  who  would  examine  the  books? — 
A.  I  should  judge  so,  to  anyone  seeing  the  pages. 

By  the  Chairman: 
Q.  You  have  stated  that  these  individual  ledgers  were  mutilated? — 
A.  Yes,  sir. 
Q.  The  individual  ledger  accounts  are  kept  on  those  books? — A.  Yes, 

sir. 

Q.  The  folios  were  numbered? — A.  With  the  exception  of  1891,  they 
opened  a  new  set  of  ledgers  every  year.  Tln^ir  ledgers  were  kept  by 
certain  letters  in  the  alphabet,  in  consetiuence  of  the  large  number  of 
accounts  which  the  bank  had.  The  ledger  opened  on  the  1st  of  January, 
1891,  was  not  paged  at  all. 

Q.  Prior  to  that  time  that  has  always  been  done? — A.  Yes,  sir. 


INVESTIGATION  OF   NATIONAL   BANKS. 


439 


Q.  So  that  when  any  leaf  was  torn  out  or  destroyed,  the  regularity 
of  the  numbering  of  pages  must  have  been  destroyed  also  ? — A.  Yes,  sir. 

Q.  Now,  what  other  books  were  used?  You  have  mentioned  the 
general  ledger  and  the  individual  ledgers. — A.  There  was  a  book  kept 
by  the  individual  bookkeeper  called  summary,  giving  the  total  amount 
of  liabilities  due  to  depositors  on  his  ledger,  which  showed  at  the  end 
of  every  day  the  liabilities  due  depositors  on  that  ledger,  or  should  do 
Then  there  was  a  book  by  which  the  teller  balanced  his  cash  every 


so. 


night,  or  should  do  so.  Then  there  are  daily  scratchers,  as  they  are 
called,  in  which  the  individual  checks  are  entered  every  day — the  de- 
positors' scratch  books,  in  which  individual  deposit  accounts  are  en- 
tered. Then  there  are  discount  books  or  registers.  The  tickler  was  a 
book  in  which  were  kept  all  the  notes  when  due  and  from  which  when 
paid  the  cash  was  charged.  Those  are  the  principal  books  involved 
in  this  examination. 

Q.  Then  there  were  the  stock  books? — A.  Yes,  sir;  the  certificate  of 
stock  book,  the  stock  ledger,  and  the  certificate  of  deposits,  as  well  as 
the  duebill  book. 

Q.  There  is  a  difference  between  the  certificate  of  deposit  book  and 
the  duebill  book? — A.  Yes,  sir. 

Q.  Certificates  of  deposit,  as  I  understand  it,  show  the  certificates 
given  individuals? — A.  Yes,  sir. 

Q.  While  the  duebill  books  showed  the  certificates  payable  through 
the  clearing  house? — A.  The  duebill  was  a  piece  of  paper  that  was  to 
take  the  place  of  certified  checks.  Its  original  idea  was  to  simplify 
the  settlements  between  the  banks  and  the  clearing  house,  and  to 
enable  parties  to  pay  notes  in  banks  other  than  those  at  which  they 
kept  their  accounts,  and  to  get  duebills  from  other  banks  and  take  up 
the  notes  instead  of  using  certified  checks.  These  duebills  were  not 
expected  to  be  held,  as  stated  on  the  face,  but  they  were  payable  the  fol- 
lowing day  through  the  clearing  house. 

Q.  The  large  deposit  by  John  Bardsley,  for  which  a  judgment  has  re- 
cently been  recovered  something  like  a  million  dollars,  was  represented 
by  duebills? — A.  Yes,  sir. 

Q.  So  you  carried  the  investigation  of  this  bank  back  to  1882? — ^A. 
Yes,  sir. 

Q.  Can  you  give  us  the  date? — A.  I  went  back  in  the  general  ex- 
amination, to  the  origin  of  the  bank  as  a  State  bank,  and  I  found  that 
in  1877  the  capital  was  impaired  $50,000.  I  found  that  in  1879  the 
capital  had  been  impaired  50  per  cent.  The  capital  originallj^  was 
$200,000,  and  upon  examination  made  in  1879,  after  it  became  a  national 
bank,  they  had  really  only  enough  on  hand  to  pay  50  per  cent  of  their 
capital  stock. 

Q.  Did  your  examination  go  back  so  as  to  enable  you  to  say  what 
the  condition  of  the  bank  was  in  1875,  when  it  went  from  the  condition 
of  a  State  bank  into  the  national-bank  system  ? — A.  They  had  been 
losing  money  previous  to  that  time.  In  1874  they  showed  on  their 
minutes,  by  a  statement  of  their  cashier,  that  their  expenses  then 
charged  off,  or  to  be  charged  off,  were  122,400,  and  their  income  only 
$18,600.  This  was  in  1874,  the  year  before  the  bank  came  into  the 
national-banking  system.  They  had  evidently  been  losing  money  by 
speculations  in  real  estate.  It  was  shown  when  this  bank  went 
into  the  national-banking  system  that  they  had  a  good  deal  of  real 
estate  on  hand,  of  which  the  Comptroller  complained.  On  August  2, 
1875,  they  began  business  as  a  national  bank.  They  had  $62,129J0  in 
real  estate  that  had  been  carried  over  from  the  State  bank.    On  janu- 


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440 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


441 


ii 


ary  0, 1877,  a  year  and  a  half  after  it  became  a  national  bank,  their 
(•a])ital  was  inipaired  in  the  actual  amount  of  $3,434.56,  and  that  year 
tliey  were  actually  carrying  on  their  books  the  old  real  estate  wliich 
tliey  had  been  ol)liged  under  directions  from  the  Comptroller  to  put  in  the 
shape  of  notes,  the  directors  giving  notes  with  the  understanding,  as  is 
shown  on  the  minutes  of  the  bank,  that  these  notes  were  not  to  be 
l)resented  for  payment  and  were  not  to  be  protested,  but  were  simply 
to  be  put  in  there  to  (juiet  the  Comptroller  of  the  Currency. 

By  Mr.  Walker  : 

Q.  I  would  like  to  know  what  means  the  examiner  of  the  bank  had 
to  discover  the  fraudulent  character  of  the  bank  at  that  timet 

The  Chairman.  To  put  it  in  proper  form  in  the  record,  just  state  to 
us  how  you  got  the  information  which  enabled  you  to  state  these  facts 
in  regard  to  this  matter. 

A.  It  is  written  on  the  minute  book  of  the  bank. 

Q.  So  that  the  minute  book  of  the  bank  showed  that  these  notes 
were  not  actually  the  property  of  the  bank,  but  were  simply  there 
with  the  understanding  that  they  were  not  to  be  used  or  protested?— 
A.  Yes,  sir;  1  think  1  have  a  copy  of  the  minutes.  1  tried  to  take  that 
down  very  closely. 

By  Mr.  Walker  : 

Q.  Was  it  possible  for  the  examiner  to  know  the  character  of  those 
entries? — A.  Well,  I  got  it  from  the  minutes,  and  1  made  a  note  of  it. 

Q.  Is  that  a  copy  of  the  minutes  which  you  have?— A.  Yes,  sir;  I 
read  the  minutes  of  the  meeting  of  the  board,  and  1  made  my  notes 
from  the  minutes. 

Q.  You  did  not  copy  them  in  full,  I  suppose?— A.  No,  sir;  this 
meeting,  it  seems,  was  called  for  June,  1870,  but  it  took  in  the  busi- 
ness from  the  beginning  of  the  bank  as  a  national  bank.  They  held  a 
meeting  on  the  7th  of  June,  1875. 

Q.  Was  that  a  directors'  meeting  ?— A.  No,  sir.  It  was  a  stockholders 
meeting,  held  just  previous  to  the  formation  of  a  national  bank.  The 
minutes  say  that  Mr.  Lucas  received  210  votes  for  director  and  failed 
of  election.  During  the  recess  the  bank  was  organized  into  a  national 
bank.  Then  the  next  entry  is  the  5th  of  June,  1870,  but  there  is  no 
record  of  any  meeting  of  stockholders  to  approve  the  transfer.  The 
president  reported  having  obtained  the  consent  of  over  two-thirds  of 
the  stockholders  to  the  organization  of  a  national  bank,  and  on  July  3, 
1875,  received  the  certificate  from  the  Comi)troller.  On  August 
2,  1875,  the  bank  began  business,  and  on  August  13, 1875,  it  surrendered 
its  State  charter.    This  is  written  in  under  date  of  June,  1870. 

At  the  beginning  they  had  mortgages  and  real  estate  other  than  the 
banking  house  of  $02,129.10.  The  Comptroller  ordered  them  to  turn 
that  into  cash,  and  that  was  not  done,  but  $11,100  Avas  sold  at  a  loss  of 
10  per  cent.  The  balance,  which  was  $47,329,  except  $3,700,  the  direct- 
ors were  carrying  as  bills  receivable  until  the  property  could  be  sold. 
This  was  done  in  order  to  comply  with  the  Comptroller's  demands. 
Granville  B.  Haines  was  elected  a  director.  Lucas  was  also  elected 
a  director  by  92  votes.     Lucas  was  not  nominated  by  the  committee. 

By  the  Chairman  : 
Q.  The  minutes  say  that  this  real  estate  was  held  in  that  condition, 
and  the  only  real  estate  they  held  was  the  banking  house?— A.  I  think 
it  was  80  reported,  and  it  was  that  which  the  Comxitroller  was  com- 


plaining about.    For  this  reason  he  forced  them  to  sell.    They  found 
that  that  was  the  only  way  to  do  it. 

O  On  the  10th  of  March,  1870,  the  report  of  the  condition  of  the 
ba^k  showed  that  all  of  the  real  estate  except  the  banking  house  had 
been  disposed  of?— A.  That  was  probably  done  just  previous  to  this 

™  Q  "so  far  as  the  minute  books  showed,  that  was  the  only  way  in 
which  they  had  disposed  of  their  real  estate?— A.  Tliat  was  all. 

Mr.  DiCKERSON.  All  this  could  have  been  ascertained  by  reading 

the  minutes  in  the  book?  ^   i  4.     ..      +^ 

A  Yes,  sir;  there  was  no  trouble  about  that.  I  wanted  to  try  to 
find'the  note  here  in  which  it  is  stated  that  these  notes  were  not  to  be 
presented  for  payment  and  were  not  to  be  protested. 

By  Mr.  Walker  : 

Q.  Is  a  note  of  that  clearly  made  on  the  record?— A.  Yes,  sir;  it  is 
made  on  the  minutes  of  the  board.  The  directors  gave  these  notes  to 
the  bank  in  place  of  the  real  estate,  with  the  distinct  understanding 
that  the  notes  were  not  to  be  paid  or  protested.    ^     ^^       .      ^, 

Q.  Were  those  notes  indorsed  by  anybody?— A.  No,  sir;  they  were 
the  individual  notes  of  the  directors.  ,,,,    .  ^  i        ^  i 

Q.  Made  payable  on  time  or  on  demand?— A.  That  I  do  not  know. 
I  did  not  see  the  notes.  What  I  saw  was  what  was  written  in  the 
minute  books  and  records  in  regard  U)  the  notes. 

By  the  Chairman  : 

O  Did  vou  find  any  record  of  these  notes  anywhere  else  except  on 
the  minutes  of  the  board?— A.  I  did  not  make  a  complete  examination 
of  the  books  for  a  record  of  these  notes.        ,     «     ^    ^^ 

Q    You  did  not  find  find  them  anywhere  else?— A.  No,  sir. 

Mr.  DiCKERSON.  Do  you  know  whether  Mr.  Drew's  attention  was 
ever  called  to  those  minutes? 

A.  1  do  not. 

By  the  Chairman: 

Q  When  is  the  first  national  bank  examiner's  report  dated— the 
one  made  bv  Mr.  Drew,  or  the  report  nearest  to  this  day,  ;Iune  (,l»Jo— 
do  you  recollect?— A.  They  ought  to  have  had  a  report  just  about  the 
time  tliat  the  bank  came  into  existence  as  a  national  bank. 

Q  In  relation  to  this  entrv  of  June  7, 1S70,  when  was  the  next  exam- 
ination made?— A.  I  do  not  know.  1  have  the  dates  of  the  examiner's 
reiM>rt,  but  not  as  far  back  as  that.  I  found  a  note  of  that  very  clearly, 
but  1  can  not  put  ray  hand  upon  it  now. 

Q.  I  wish  we  could  get  the  date.— A.  We  can  get  the  date  ot  it. 

Q.  Mr.  Drew  was  the  examiner  in  1870,  when  this  bank  went  into  the 
national  banking  system?— A.  Yes,  sir. 

Mr.  DiCKERSON.  Who  made  the  examination  ot  the  condition  at  tue 

time  it  went  in?— A.  Mr.  Drew. 

By  the  Chairman: 

Q.  Leaving  that  matter  of  the  note— we  caJi  take  it  up  later— was 
this  real  estate  as  you  discovered  it  at  the  time,  ever  atter  sold?— A. 
Yes,  sir;  the  notations  on  the  minutes  at  the  time  declared  the  purpose 
of  selling  small  lots  of  real  estate.  ,  j        u  i.  xv^ 

Q.  Are  you  able  to  state  from  any  examination  you  made,  what  the 
result  of  the  operation,  if  any,  was  to  the  bank— whether  the  amount 


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442 


INVESTIGATION   OF   NATIONAL    BANKS. 


of  the  real  estate  was  put  into  this  statement? — A.  The  sale  of  that 
real  estate  was  at  a  loss  to  the  bank,  so  far  as  my  examina/tion  showed. 

Q.  As  to  how  much  that  loss  was  you  do  not  know  ? — A.  No  sir. 

Q.  Did  you  ever  see  any  evidence  in  the  books  to  show  that  the 
directors'  notes  given  for  the  real  estate  were  entered  as  bills  pay- 
able?— A.  No  sir. 

Q.  Can  you  give  us  the  date  of  the  next  stockhoUlers'  meeting  at 
which  a  report  of  the  committee  for  examining  the  affairs  of  the  bank 
was  presented! — A.  It  was  the  4th  of  February,  1879.  A  committee  of 
three  gentlemen  named  Wood,  Myers,  and  Stuart  were  appointed  in 
January,  1879,  and  they  reported  the  condition  of  the  bank. 

Q.  Where  do  you  get  that  from? — A.  From  the  minutes  of  the  bank. 

Q.  Please  state  what  the  result  was. — A.  The  items  are  all  here.  It  is 
an  itemized  report,  and  shows  the  total  assets  at  $331,095.  The  total 
liabilities  were  itemized  at  $264,510.  This  is  leaving  out  the  capital 
stock,  making  $66,579  to  represent  the  capital  stock. 

Q.  The  capital  stock  was  $200,000?— A.  Yes,  sir.  Then  they  stated 
that  the  bank  building  cost  $90,000  and  that  $30,000  had  been  expended 
upon  it,  making  it  worth  $120,000.  There  was  an  incumbrance  on  it 
of  $60,000  in  the  form  of  a  first  mortgage.  Tlie  committee  put  an  es- 
timate on  the  banking  house  of  $93,000,  whicli  Avould  leave  $33,000, 
and  leave  for  the  stock  about  $100,000,  or  50  per  cent  of  its  par  value. 

Q.  There  was  $60,000  to  represent  the  stock,  and  the  balance  was 
put  on  the  banking  house  to  make  it  up? — A.  Sixty-six  thousand  dol- 
lars was  left  over  to  represent  the  capital  stock. 

Q.  You  began  the  examination  at  a  later  i)oint  and  brought  it 
down  ? — A.  1  only  took  the  statements  of  the  cashier,  Mr.  Wiswell,  on 
the  minutes  as  to  those  losses.  The  report  of  the  committee  is  entered 
on  the  records  of  the  bank  in  1879. 

Q.  At  what  point  did  you  begin  the  examination  of  the  bank  regu- 
larly, so  as  to  bring  it  down,  and  hunt  up  these  various  items? — A. 
December  31,  1882. 

Q.  From  that  time  out  did  you  carry  up  the  affairs  of  the  bank? — 
A.  I  made  a  pretty  careful  examination  from  there  on. 

Q.  As  far  as  possible,  I  suppose,  the  statement  which  you  made  cor- 
responded in  date  with  the  examiner's  reports,  or  the  rei)orts  of  condi- 
tion, as  we  call  them? — A.  Not  always,  because  I  desired  to  take  state- 
ments at  periods  other  than  those  at  which  they  were  called  for  in  the 
reports  of  the  bank  examiners,  because  I  found  there  was  such  a  dis- 
position to  falsify  in  those  periods.  I  wanted  to  see  if  there  was  a 
period  where  they  had  no  object  in  falsifying  the  books,  so  that  I  could 
put  my  finger  on  the  points. 

Q.  You  made  these  examinations  from  the  books  of  original  entry 
yourself? — A.  Yes,  sir;  without  reference  to  anything  else. 

Q.  Supi)ose  you  take  up  seriatim  the  statements  showing  the  condi- 
tions of  the  bank  from  time  to  time. — A.  Well,  I  will  take  December 
31,  1882.  In  the  first  place,  before  1  take  this  up,  I  will  say  that  I  had 
quite  a  long  conversation  with  a  man  who,  by  the  way,  was  the  man 
who  did  most  of  the  manipulating  on  the  books,  and  he  stated  to  me 
very  candidly  that  the  worst  of  the  work  began  in  1886;  that  he  could 
have  been  arrested  just  as  well  in  1886  as  in  1891  for  falsifications  of 
the  accounts.  I  found  that  statement  to  be  so.  The  report  made  in 
1882  shows  there  were  lalsifications,  mostly  in  the  individual  ledger,  of 
about  $600. 

Q.  What  was  the  condition  of  the  bank  at  that  time? — A.  The  ex- 
aminer's report  at  that  time  1  had  not  taken  up. 


INVESTIGATION   OF   NATIONAL   BANKS. 


443 


«'.^ 


Q.  I  did  not  mean  the  examiner's  report,  but  what  was  the  condition 
of  the  bank  as  to  a.ssets  and  liabilities.  Was  it  solvent?— A.  I  think 
it  was  solvent.    The  appearances  were  that  it  was  solvent  at  that  time, 

in  1882. 

Q.  What  were  the  assets  and  liabilities?— A.  I  have  not  the  figures. 
My  first  discovery  of  its  being  really  in  a  bad  condition  was  in  1886. 
1  took  off  a  statement  for  September,  1886. 

Q.  Go  on  with  this  report  first,  please.  What  is  the  next  state- 
jnent?— A.  The  next  is  the  report  of  July  6,  1883,  which  showed  the 
individual  ledgers  had  $1,155,80  less  to  the  credit  of  depositors  than 
was  shown  by  the  summaries.  On  July  23,  1884,  there  was  $73,000 
difference.    That  was  the  beginning  of  the  trouble. 

Q.  Where  was  that  difference !— A.  That  difference  was  in  John 
Lucas's  account.  There  were  falsifications  in  the  account  of  Lucas,  and 
he  was  credited  on  the  books  with  more  money  than  he  really  had. 

Q.  So  that  the  credits  of  individuals  on  the  ledger  at  that  time  was 
$73,000  and  upwards  more  than  they  were  actually  entitled  to! — A. 

Yes  sir 

q!  And  those  credits  were  in  favor  of  Lucas?— A.  Yes,  sir.  I  took 
the  face  of  the  ledger,  and  when  I  came  to  see  Avhere  it  was  I  saw 
it  was  a  falsification.  The  general  ledger  only  called  for  $681,000, 
and  the  individual  ledger  $754,000,  which  made  a  difference  of  $73,000 
in  round  figures.  In  1885  it  was  $52,000.  On  October  1  there  Avas 
$52,000  difterence  in  the  individual  ledger  and  $85,000  difference  in  the 
notes  discounted  that  year.    That  is  the  report  to  the  Comptroller  of 

October  1,  1885. 

Q.  You  say  there  was  $52,000  differeuQC  in  the  individual  ledger? — 
A.  The  individual  ledger  showed  to  the  credit  of  individual  depositors 
$52,000  more  than  was  actually  received. 

Q.  Who  had  that?— A.  Lucas.  The  notes  discounted,  as  shown  by 
the  discount  books,  were  $85,000  less  than  was  reported  on  the  gen- 
eral ledger  as  being  on  hand.  The  bills  discounted  called  for  $847,000 
on  the  general  ledger,  but  the  discount  book  disclosed  only  $761,000. 

Q.  The  result  was  that  they  increased  the  assets  $50,000  and  odd, 
and  reduced  the  liabilities?— A.  Yes,  sir;  that  was  their  plan. 

Mr.  Walker.  One  complemented  the  other? 

A.  One  showed  an  increase  of  assets  of  $7,000  and  the  other  a  de- 
crease of  liabilities  of  $52,000,  which  would  make  a  difference  of 
$59,000.    That  was  October  1, 1885. 

By  Mr.  Dickerson  : 

Q.  Could  not  that  have  been  easily  ascertainable  by  an  expert  ac- 
countant?—A.  No,  sir.  Of  course,  a  person  at  that  time  would  have 
to  take  the  paper  on  hand  and  make  a  list  of  the  paper  to  see  whether 
it  was  what  the  general  ledger  called  for. 

Q.  It  required  a  specific  examination  ?— A.  Yes,  sir.  To  take  it  down 
to  this  period  is  a  long  job. 

Q.  Is  it  not  the  ordinary  duty  of  an  examiner  in"  ascertaining  the  con- 
dition of  a  bank?— A.  It  is  the  duty  of  an  examiner  to  take  every 
piece  of  paper,  single-name  paper,  double-name  paper,  and  all  paper 
on  which  the  names  of  the  directors  appear  and  make  a  list  of  them. 

Q.  And  base  his  judgment  as  to  its  character  and  value?— A.  Yes,  sir. 

By  Mr.  AYalker  : 
Q.  When  a  bank  examiner  goes  to  a  bank  is  it  not  his  duty  to  pay 
no  attention  whatever  to  any  name  of  any  nature,  but  simply  call  for 


! 


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«««MiMMM*iiawrlaaBa3wiiMW 


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444 


INVESTIGATION   OF   NATIONAL   BANKS.' 


the  assets  of  the  bank  and  examine  them,  call  for  the  liabilities  and 
examine  them,  and  see  how  the  concern  stands;  and  then,  secondly,  to 
see  if  the  acconnts  correspond  to  what  he  has  ascertained? — A.  Yes; 
that  is  what  I  understand. 

Q.  If  an  examiner  had  done  that  at  any  time  (or  at  the  organization 
of  the  bank  into  a  national  bank)  could  he  have  failed  to  discover  thatf 
Would  he  not  have  discovered  the  actual  condition  of  the  bank! — A. 
If  a  careful  examiner  had  done  that  I  do  not  see  how  he  could  have 
gotten  around  it. 

Q.  You  understand  that  as  a  business  man  I  take  my  assets  and 
liabilities,  and  I  go  to  work  to  see  if  my  bookkeeper  has  kept  them  prop- 
erly and  whether  his  accounts  agree  with  mine. — A.  The  bank  examiner 
must  have  an  assistant  to  take  off  the  items.  Of  course  they  could  be 
blinded  and  fooled  right  straight  along. 

Q.  How  long,  in  your  judgment,  did  some  of  these  items  appear,  so 
far  as  notes  are  concerned,  in  that  bank? — A.  I  think  it  is  difficult  for 
me  to  say,  because  there  was  a  great  deal  of  this  paper  renewed  and 
carried  on. 

Q.  The  notes  being  the  samel — A.  Yes,  sir;  from  year  to  year. 
There  is  a  note  in  the  receiver's  hands  which  has  been  carried  since 
1887.  There  is  a  note  of  Lucas  given  February  28,  1887,  and  that  has 
been  in  the  bank  ever  since. 

By  the  Chairman  : 

Q.  What  was  the  i)eriod  you  were  answering  about? — A.  October  1, 
1885. 

Q.  What  was  the  condition  of  the  bank  at  that  time? — A.  There 
was  a  detiidency  of  $5(),0(H). 

Q.  Was  the  bank  solvent  then? — A.  I  think  the  bank  was  solvent, 
but  very  much  in  debt. 

Q.  But  the  stock  was  impaired  $137,0(M)  out  of  a  total  of  $200,000?— 
A.  The  capital  sto(;k,  I  think,  in  1885  was  $400,000,  and  later  it  was 
made  $500,000. 

Q.  The  increase  was  made  in  1885? — A.  Yes,  sir. 

Q.  Sin(*e  we  are  upon  that  point,  will  you  state,  please,  whether,  from 
the  investigation  made  by  you  at  the  time  when  tliis  increase  was  sai<l 
to  have  been  made,  the  bank  received  the  $200,000  in  cash  for  its  new 
stock? — A.  I  think  it  did,  as  far  as  my  examination  Avent.  Two  hun- 
dred thousand  dollars  increase  was  called  for  in  consequence  of  an  over- 
issue of  stock.  The  stock  had  been  overissued  before  the  increase  was 
made,  and  we  found  in  several  instances  when  the  call  was  made  for  an 
increase  that  an  overissue  of  stock  had  been  made  i>revi<ms  to  that. 

Q.  So  that  the  bank  did  not  receive  the  $200,000  lor  new  st<>ck,  but 
bad  received  it  prior  to  that  time? — A.  It  had  received  a  portion  of  it. 

Q.  They  had  issued  stock  before  that? — A.  Yes,  sn*. 

By  Mr.  Cox: 

Q.  If  that  conditi(m  of  facts  in  the  bank  was  shown  before  the  stock 
was  issued,  why  was  not  it  in  the  bank  as  assets? — A.  It  should  have 
been.  The  stock  ledger  and  the  stock  book  should  have  shown  every 
issue  of  stock  at  that  time. 

Q.  But  the  receipt  of  this  additional  sum  necessarily  increased  the 
assets  of  the  bank,  and  although  this  am<Kint  was  received,  yet  there 
was  a  deficit  of  $1.50,000  and  odd?— A.  Yes,  sir. 

Q.  When  this  new  stock  was  issued  there  was  nothing  received  for 
it? — A.  Not  the  whole,  but  only  a  part  of  it,  which  had  been  overissued. 


INVESTIGATION   OF   NATIONAL   BANKS. 


445 


*f 


By  the  Chairman  : 

Q.  How  did  you  discover  that  the  stock  had  been  overissued  prior  to 
the  tirst  increase?— A.  By  making  a  critical  examination  at  that  time 
from  the  time  it  existed  as  a  State  bank. 

Q.  That  you  discovered  from  the  examination  of  the  stock  book  and 
stock  ledger?— A.  Yes,  sir,  from  everything  I  could  find. 

Q.  Prior  to  the  time  when  this  authorization  was  made  for  the  m- 
crease  of  stock,  there  had  been  an  overissue?— A.  Y^es,  sir. 

Q.  Could  not  the  examiner  have  tbund  that  out?— A.  He  ought  to 
have  found  it  out  from  the  stock  ledger  which  was  kept  hi  the  bank  at 

that  time.  _,  ,  ,   _  .      . 

Q.  And  which  disclosed  those  facts!— A.  The  stock  ledger  was  kept 
in  a  careless  way.  I  ignored  their  old  stock  book  because  in  1888  and 
1889  it  had  been  so  recklessly  kept  that  I  could  not  be  guuled  by  it  at 
all.  I  had  to  lay  it  aside  because  to  use  it  would  be  simply  wiisting 
time.  I  built  up  a  new  stock  ledger  from  the  beginning  of  the  bank. 
I  made  it  out  anew  entirely.  All  the  posting  in  the  stock  ledger  stopped 
in  1889.  There  has  been  no  j)osting  of  the  transfers  or  sales  ot  any 
stock  into  the  ledger  since  that  time.  Prior  to  this  time  there  is  shown 
an  overissue  of  325  shares. 

Q.  Prior  to  what  time  ? — A.  1889. 

Q.  In  order  that  this  may  be  clearly  shown  in  the  record,  I  want  to 
keep  down  to  this  extra  issue.  As  I  understand  you,  there  was  an  over- 
issue of  stock  prior  to  the  authority  being  given  to  the  bank  to  increase 
thecapitalstock?— A.  Yes,  sir.  .  ^.     ,     a 

Q.  And  that  appears  from  the  stock  ledger  of  the  association  ?— A. 

Yes,  sir. 

By  Mr.  Walker  : 
Q.  What  discrepancy  was  there  at  this  time  between  the  overissue 
and  the  increase  of  stock?    Does  it  appear?— A.  What  kind  of  over- 

issue  ? 
Q.  Was  it  not  an  overissue  of  stock?— A.  The  regular  issue  was 

^'^00  000 

Q.' On  the  day  that  was  voted  was  there  an  overissue  ?— A.  There 
was,  but  it  was  not  very  much.     I  remember  that. 

Q.  On  that  day  there  was  $200,000  issued,  and  how  much  stock  was 
overissued  on  that  very  dav—the  first  increase  after  the  bank  was 
ordered  as  a  national  bank?— A.  1  think  I  have  a  note  here  m  regard 
to  that,  and  my  recollection  is  it  was  about  40  shares. 

Q.  Did  they  actually  get  the  cash  for  the  IGO  shares.— A.  No.  iSo 
cash  was  taken  in  on  that  extra  40  shares.  , 

Q.  You  mean  to  say  they  were  issued,  but  they  had  not  been  paid 
for  until  this  increase  of  stock  after  that,  and  they  were  then  paid  for 
and  issued?— A.  I  think  they  were  issued  and  paid  for  a  considerable 

time  before.  •      •     *    v 

Q.  And  this  appears  as  assets  of  the  bank  all  the  timer— A.  les, 
about  40  shares.  The  reason  I  speak  of  the  first  small  issue  of  st^>ck 
is  to  show  that  all  these  matters  had  a  beginning.  They  all  began  in 
small  items  and  all  gradually  increased.  The  history  of  the  bank  shows 
that  they  had  a  gradual  growth.  ^  ^,     •  n 

Q.  In  additicm  to  this  40  shares,  what  is  the  history  of  the  issue  ot 
the  160  shares?— A.  That  seemed  to  be  made  on  that  200  regular  issue, 
except  that  when  they  approaclied  a  period  in  which  they  made  a  new 
issue  of  stock  they  overissued  again. 
Q.  They  issued  after  that  about  $400,000,  and  they  overissued  again, 


1  f 

'■    4 


«.;ir 


mmtmm 


446 


INVESTIGATION    OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


447 


n 


and  that  was  before  they  called  for  the  $100,0001 — A.  Yes,  sir.    And 
the  secoud  time  the  overissue  was  considerably  more  than  the  first  one. 
Q.  Bo  you  remember  how  much! — A.  No,  sirj  but  I  think  it  was  over 
100  shares. 

By  Mr.  Dickerson  : 

Q.  I  will  ask  whether  you  ascertained  this  from  the  records  of  tlie 
bank,  or  whether  you  were  required  to  get  the  information  outside  ? — A. 
I  was  asked  to  get  information  from  whatever  direction  I  could. 

Q.  Could  you  have  ascertained  these  facts  from  any  testimony  out- 
side!— A.  No,  sir,  I  think  not. 

Q.  The  examiners  could  have  ascertained  these  facts  from  the  books  ? — 
A.  I  think  they  could  have.  The  stock  ledger  that  the  bank  had  been 
keeping  itself  sliowed  the  overissue. 

By  Mr.  Wike: 

Q.  Could  you  state  how  much! — A.  No,  sir,  not  now;  but  1  will  do 
so  hereafter.    I  took  it  off  and  laid  it  aside. 

Q.  You  can  not  say  just  what  tlie  amount  was  that  you  discovered 
was  first  overissued! — A.  I  can  not.  because  of  the  irregularity  in  dat- 
ing their  transactions  when  they  put  them  on  this  ledger.  I  tried  to 
get  at  the  dates  when  they  did  it,  but  all  1  found  was  325  shares  over- 
issued, which  was  not  correct,  for  there  was  a  great  deal  more  than 
that. 

By  the  Chairman  : 

Q.  Go  on  to  the  next  statement. — A.  The  next  item  I  have  here  was 
October  7,  1880,  which  was  at  the  time  of  a  report  to  the  Comptroller. 

Q.  Eeport  of  the  condition  of  the  bank! — A.  Yes,  sir.  The  individ- 
ual ledger  showed  due  depositors  $1,391,000,  and  the  general  ledger 
showed  the  individual  deposits  due  depositors  to  be  $1,120,000,  a  differ- 
ence of  $271,000.  This  is  the  first  place  where  a  large  difference  was 
shown. 

Q.  You  say  you  made  this  examination  at  the  dat«  of  the  report  of 
the  condition,  or  the  examiner^s  report! — A.  Yes,  sir;  at  the  date  of 
the  report  of  the  condition. 

Q.  Were  the  figures  you  have  given  contained  in  the  report  of  con- 
dition ! — A.  The  report  to  the  Comptroller  showed  $1,153,000,  which  was 
$33,0(K)  more  than  the  general  ledger  showed,  so  that  the  report  of 
condition  was  $240,000  less  than  the  individual  ledger  showed  as  being 
due  to  individual  depositors. 

Q.  State  what  the  condition  of  the*  bank  then  was. — A.  The  notes 
discounted  were  reported  at  $1,208,000  and  thi}  difference  was  $404,(100. 

Q.  So  that  the  report  of  condition  was  $()SO,0(K)  falsified  there! — A. 
About  $0(»0,000,  I  think,  bc^cause  the  overdrafts  by  the  ledgers  showed 
that  they  only  reported  a  very  small  amount,  $1,500  or  $1,000,  while 
there  were  $57,000  in  overdrafts.    The  bank  was  solvent  at  that  time. 

Q.  Upon  the  face  of  the  books! — A.  Yes,  sir. 

Q.  Take  the  next  date.  Any  explanation  you  have  to  make  you  had 
better  make  in  connection  with  your  remarks  as  you  proceed. — A.  1  will 
do  so.  On  May  25, 1887, 1  took  offthe  balance  simplyforthis  reason,  that 
1  did  not  want  it  at  a  period  when  a  report  from  the  Comi)troller  was  called 
for,  but  this  was  a  period  in  which  they  w  ere  changing  the  method  of  run- 
ning the  individual  ledgers.  They  clianged  it  from  two  books  to  three, 
taking  part  of  the  accounts  from  the  two  books  and  forming  them  into 
three  books.  At  that  time  they  put  into  the  bank  a  new  bookkeeper 
on  one  of  these  ledgers,  a  man  who  has  since  been  under  indictment, 


and  it  was  necessary  for  me  to  see  where  his  work  had  begun.     I  there- 
fore made  quite  a  critical  examination  at  that  period.    I  found  by  the 

individual  ledgers  at  that  time  there  was  a  difference 

Q.  There  was  a  difference  between  the  individual  ledgers  and  the 
Q-eneral  ledger!— A.  Yes,  sir.  There  was  a  difference  between  the  in- 
dividual ledgers  and  the  general  ledger  of  $447,000.  I  give  these  fig- 
ures in  round  thousands,  and  am  not  going  into  the  hundreds  and 
dollars  and  cents.  The  individual  ledgers  actually  showed  more  due 
to  depositors  by  $447,000  than  was  shown  by  the  individual  deposit 
account  of  the  general  ledger. 

Q.  With  that  correction  made,  what  would  the  general  ledger  have 
shown  the  condition  of  the  bank  to  be  as  to  its  solvency!    Was  it  sol- 
vent or  otherwise!— A.  That  difference  I  did  not  at  that  time  know  in 
consequence  of  the  fact  that  I  took  off  a  statement  October  5,  of  the  same 
year,  in  which  I  went  into  that.    I  found  a  good  many  pages  were  torn 
out  this  year.    In  one  ledger  there  were  accounts  to  the  amount  of 
$12,158.30  torn  out. 
Mr.  Brosius.  Were  the  pages  numbered! 
A.  Yes,  sir;  the  pages  were  all  numbered  in  the  ledger. 
The  Chairman.  Go  to  the  next  date. 

A  The  next  was  October  5, 1887,  at  which  date  there  was  a  report  to  the 
Comptroller.  On  that  date  I  found  $247,000  difference  in  the  individ- 
ual deposits ;  that  is,  that  the  actual  amount  as  shown  on  the  individual 
ledger  as  being  due  to  depositors  was  $247,000  more  than  their  sum- 
maries called  for.  Here  is  another  difference  in  this  year.  Their  state- 
ment to  the  Comptroller  at  that  time  was  $164,000  more  in  the  individ- 
ual deposit  account  than  was  called  for  on  the  general  ledger.  The  in- 
dividual deposit  account  on  the  general  ledger  only  called  for  $1,089,000, 
while  the  individual  ledger  called  for  $1,572,000,  a  difference  of  $483,000, 
while  they  reported  to  the  Comptroller  at  that  time  $1,254,000,  a  dif- 
ference of  $318,000  between  what  the  individual  ledger  showed  and 
what  the  report  to  the  Comptroller  showed. 

By  Mr.  Cox: 

Q.  I  want  to  get  at  this  if  I  can.  When  this  contradiction  in  these 
books  first  appeared,  and  your  attention  was  first  directed  to  it,  one 
shoAviog  one  thing  and  one  another,  what  was  the  date  at  which  that 
appeared!— A.  The  first  date  at  which  that  appeared  was  in  1885. 

Q.  Did  you  not  state  in  your  examination  of  this  matter,  and  when 
you  discovered  it,  the  examiner  was  present!— A.  The  bank  examiner? 

Mr.  Cox.  Yes.  . 

The  Witness.  No,  sir;  the  bank  examiner  has  never  been  with  me 

at  all. 

By  the  Chairman  : 
Q.  In  regard  to  this  statement  of  October,  1887,  what  other  difference 
did  you  find!— A.  That  was  the  only  matter  I  was  able  to  work  out  at 

that  period.  j  ,.  .  ,  ..•     •     a 

Q.  Did  you  make  up  a  statement  of  the  assets  and  liabUities !— A. 

Not  at  that  time.    October  4,  1888,  I  did. 

Q.  Is  that  the  date  of  the  report  of  condition  made  to  the  Comp- 
troll  or?     A.    Y'es  sir. 

Q.  State  what  the  differences  were  at  that  time.— A.  The  individual 
ledtrer  called  for  $1,443,000.  The  report  to  the  Comptroller  was  for 
$1,217,000,  while  the  general  ledger  only  showed  $1,182,000. 

Q.  It  will  facilitate  our  progress  if  you  will  give  us  the  different 


•  1 

:4 


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448 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


449 


«j 


■  ■  W! 


Wl 


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amounts  upon  the  individual  and  general  ledgers  as  you  proceed,  the 
amounts  vshown  by  individual  deposits  ? — A,  The  account  on  the  gen- 
eral ledger  was  $1,182,000. 

Q.  Give  us  the  ditterence? — A.  The  difference  between  the  general 
ledger  and  the  individual  ledger  was  $261,000. 

Q.  Less  on  the  general  ledger  than  on  the  individual  ledgers  1 — A. 
Yes,  sir. 

Q.  How  niuch  less  was  the  amount  reported  to  the  Comptroller  than 
was  on  the  individual  ledger? — A.  Two  hundred  and  twenty-six  thou- 
sand dollars. 

Q.  Was  there  any  other  difference  that  vou  figured  outf — A.  There 
wa.s  $172,000  in  overdrafts.    They  reported  $40(».25. 

Mr.  Walker.  There  is  a  material  question  there.  Why  could  not 
the  bank  examiner  have  discovered  that  if  he  had  attended  to  his  duty 
fairly  well;  not  if  he  had  had  suspicions,  but  if  he  had  used  reaij^onable 
accuracy  and  integrity! 

The  Chairman.  Before  we  go  into  that  let  us  finish  this  one  item. 
The  different  overdrafts,  as  shown  by  the  report  of  condition  and  as 
shown  by  the  books,  was  in  favor  of  the  bank,  so  as  to  give  it  more 
assers.  « 

A.  It  was  better  for  the  condition  of  the  bank.  If  they  had  re])orted 
to  the  Comptroller  $172,000  overdrafts  they  would  have  been  (tailed  in 
question. 

Q.  On  which  side  is  that  shown? — A.  On  the  side  of  the  assets. 

Q.  So  that  it  really  diminished  the  assets  by  that  amount! — A.  Yes, 
sir. 

Q.  And  they  had  already  diminished  their  liabilities? — A.  Yes,  sir. 

Q.  By  showing  less  than  the  actual  amount  due! — A.  Yes,  sir. 

Q.  Would  there  have  been  any  difficulty  in  an  examiner  ascertaining 
this  discrepancy? — A.  I  do  not  think  there  would. 

Q.  Either  as  to  overdrafts  or  as  to  the  amount  due  depositors! — A. 
If  any  competent  man  had  gone  over  the  accounts  I  think  he  would 
have  found  that.    I  do  not  see  why  he  (;ouUl  not  have  done  so. 

Mr.  Cox.  You  say  a  "careful"  man.  Cimld  not  any  man  who  could 
count  figures  have  discovered  this  discrepancy? 

A.  I  should  think  so.  We  take  these  as  the  face  of  the  ledger  with- 
out altering  anything. 

By  the  Chairman  : 

Q.  Did  you  get  at  the  condition  at  that  time? — A.  The  difference  in 
the  notes  discounted  were  $:5()2,000.  The  report  was  $1,318,000.  The 
general  ledger  showed  $1,313,000,  while  the  notes  discounted,  as  I 
wprked  them  up,  showed  $050,(KH). 

Q.  So  that  they  were  overstated  there  how  much! — A.  Three  hun- 
dred and  sixty-eight  thousand  dollars. 

Q.  In  what  condition  did  this  leave  the  bank! — A.  Over  $000,000 
deticienc^y. 

Q.  That  is  not  putting  in  the  stock  as  a  liabibty? — A.  No,  sir. 

Q.  That  sliowed  that  the  stock  was  wiped  out,  and  the  concern  was 
$100,000  worse  off  than  nothing  ? — A.  Yes,  air.  There  Avere  seventy- 
two  pages  torn  out  of  the  individual  ledgers  at  this  period.  That  is 
the  first  time  when  any  considerable  number  of  pages  disappeared. 

Q.  And  you  have  stated  in  some  cases  pages  liad  been  torn  out  and 
put  back! — A.  That  was  not  done  until  1800. 

Q.  These  were  never  jmt  back?— A.  These  were  gone.  Fifty  pages 
were  gone  from  the  ledger,  11  to  O.    Among  the  cases  of  discrepancy  I 


found  in  the  ledger,  H  to  O,  where  the  general  accounts  of  the  Lucas 
family  and  Marsh  were  kept,  that  they  were  the  books  which  were  the 
worst  mutilated. 

Q.  Take  the  next. — A.  The  next  is  September  30,  1880,  when  there 
w  as  a  report  to  the  Comptroller. 

Q.  State  what  was  the  actual  situation  theii. — A.  They  reimrted  to 
the  Comptroller — at  least  the  difference  between  tlic*  individual  deposit 
iwcounton  the  general  ledger  and  what  was  due  indi\idual  depositors, 
as  shown  by  the  individual  ledger,  was  .f  801 ,000  at  that  time. 

Mr.  BROSIU8.  A  moment  ago  the  chairman  asked  the  witness  to  [jass 
the  aggregates.     I  think  we  ought  to  have  the  aggregates  in  the  record. 

By  the  Chairman: 

Q.  Oive  us  the  total  am<mnt  sliowii  on  the  individual  ledger  due  de- 
positors at  that  time. — A.  At  that  time  it  was  $2,001,337.15;  and  tlu' 
individual  deposit  account  on  the  general  ledger  calls  for  $1,109,080.01). 

Q.  The  report  showed  how  much? — A.  $1,462,127.51. 

Q.  What  were  the  bills  discounted? — A.  The  bills  discounted  I  tO(>k 
off  the  mouth  after. 

Q.  You  did  not  ascertain  the  actual  condition  of  the  bank  at  that 
time? — A.  No,  simply  because  I  did  two  weeks  afterwards. 

Q.  What  is  the  next  one? — A.  The  next  point  was  October  10,  1889. 
This  I  made  because  it  was  a  point  at  which  the  bank  examiners  liad 
tiiken  the  balance  sheets  made  out  by  the  bookkeepers  themselves  in 
their  own  handwriting  for  this  period.  They  gave  the  bank  examiner 
this  data,  from  which  he  made  up  his  reports.  Each  bookkeeper  made 
up  his  balance  sheets,  and  the  examiner  took  those  as  his  guide.  So  1 
made  a  critical  examination  at  that  period. 

Q.  Give  us  the  results  while  we  look  at  the  sheets. 

By  Mr.  Cox : 

Q.  When  those  individual  sheets  were  furnished  to  the  examiner, 
and  he  made  up  his  report,  did  he  report  entirely  on  the,  sheets  fur- 
nished by  those  bookkeepers? — A.  This  is  the  record  of  indi%'idual  de- 
posits. 

Q.  There  was  no  examination  in  that  at  all? — A.  Xo,  sir. 

By  the  Chairman  : 

Q.  State  the  result  as  we  take  up  these  sheets. — A.  At  this  period 
[examining  sheet]  the  individual  ledger  called  for  $1,669,000. 

Q.  That  is,  that  was  the  amount  due  depositors  according  to  the 
individual  ledger.  What  did  the  general  ledger  show? — A.  The  gen- 
eral ledger  at  that  date  showed  $1,137,0(K). 

Q.  And  the  difference  is  how  much? — A.  The  difference  is  live  hun- 
dred and  thirty  odd  thousand  dollars. 

<^>.  What  is  the  difference  there? — A.  The  Ijank  examiner's  report 
was  $1,137,000,  and  the  books  were  $1,137,000,  the  same  as  the  general 
ledger. 

Q.  That  was  the  report  of  the  balances  on  the  general  ledger? — A. 
Yes,  sir. 

Q.  Co  to  the  item  of  overdrafts. — A.  The  overdrafts,  as  shown  at  that 
time  by  the  examiner's  report,  was  $22,000,  while  the  overdrafts  actually 
were  $46,114. 

Q.  That  was  what  the  individual  ledger  showed? — A.  Yes,  sir  j  the 
actual  overdrafts. 

Q.  That  was  a  difference  of  $24,000?— xV.  Yes,  sir.  T  then  went  into 
an  examination  of  these  accounts,  account  by  account,  on  the  individual 
3792 29 


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INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION   OF    NATIONAL    BANKS. 


451 


ledffer  at  that  time,  having  the  sheets,  aud  I  found  these  aecoiints  had 
been  manipuhited  previous  to  the  takiuji- of  the  balances,  so  that  tlie 
face  of  the  balances  imniediatoly  previous  to  the  time  tje  balance  was 
taken  was  manipulated  on  the  ledgers  to  the  extent  of  '^•^l^;!'***^-  ^^. , 

Q.  That  is,  the  amount  due  depositors  had  been  reduced  $J1  <  ,U(M»  .— 
A.  Yes,  sir;  making  a  total  of  $886,00(».  ,,    X  1        •      i 

Q.  There  was  a  manipulation  of  $317,000.  How  was  t  uit  done  f—A. 
In  various  ways.  In  some  instances,  by  making  false  charges.  Ihey 
would  post  a  cheek  in  an  account  for  .tlO,0(»0,  although  no  check  was 
given.  In  another  instance,  they  wiptnl  out  tbe  thousands  in  the 
balance  column.  These  halauces  were  put  in  lea^l  pencd  in  the  balance 
column,  and  they  Avould  rub  out  the  thousands.  As  you  can  see,  they 
would  rub  out  for  a  week  a  space  on  the  ledger  as  long  as  my  finger,  and 
later  those  amounts  were  again  inserted.  a    x-  *  • 

Q.  Was  there  any  ditticulty  in  seeing  those  erasures^— A.  ><»t  in 
most  instances.  It  was  done  in  a  shiviidy,  careless  sort  ol  way.  VVe 
could  see  where  the  balance  to  a  mairs  account  was  dropped  to  the 

amount  of  Ji^-J^O.  uu  +k..o^ 

Mr.  Brosii  s.  How  could  they  add  up  those  columns   with  those 

thousands  gonet  ,  ,, 

A  This  was  in  what  was  known  as  the  balance  column.  It  was  never 
footed  up.  Those  balances  are  carried.  Every  time  they  would  reduce 
the  balance  column  they  would  insert  a  check,  and  every  time  a  de- 
posit was  added  the  amount  would  be  increased. 

The  CHAIRMAN.  Can  you  give  us  the  earliest  <late  where  you  tountl 
the  balance  column  treated  in  that  way  ? 

A.  1  think  in  April,  1S80,  at  a  peri(Kl  when  Ihc  bank  examiner  was 

Mr  <^:ox.  You  say  the  bank  examiner  was  there  then?— A.  He  came 
there  April  9,  1880.  A  great  many  aecounts  were  torn  out  and  de-^ 
stroyed  from  January  1  to  April  9,  and  were  re(»pened  as  under  date  ol 

^  Mr  \ViKE.  T  do  not  get  the  signiticance  of  your  statement  that  the 
report  was  made  from  this  data  of  the  bookkeepers.  It  seems  from 
the  statement  which  you  now  make  tliat  these  were  gotten  from  the 
o-eneral  ledger.— A.  The  sh«'ets  of  the  bookkeepers  showed  only  about 
ll  100  difference.  Thev  nearly  agreiMl  witli  the  general  ledger.  Kacli 
of  tlies(»  sheets  was  footed,  and  the  total  agreed  with  the  total  as  shown 
by  the  indiviiUial  deposit  account  iu  the  general  ledger. 

By  the  Chairman: 
O    Before  vou  go  to  those  sheets,  state  what  was  the  amount  o\'  bills 
discounted  at  that  date  ?-A.  The  differen<ein  the  bills  discounted  were 

^  t44  (K)0 

'    Q  'which  wav?— xV.  Thev  reported  $444,000  more  than  I  could  fintl 
on  tiie  books,  aiid  1  have  gone  over  them  very  critically,  not  only  my 
self,  but  two  others,  and  we  revised  our  work  because  there  was  a  good 
deal  of  question  raised  about  the  transactions  at  this  time. 

0  About  what  was  the  condition  of  the  books  of  the  bank  at  that 
time''— A  Their  condition  for  the  year  1889  is  the  worst  I  ever  saw  in 
any  bank.    There  were  ;574  pages  torn  out  and  entirely  g(>ne. 

Q  Ycm  found  that  the  l)00ks  showed  amounts  due  individual  deposit- 
or^'which  did  not  appear  on  the  sheets  furnisheil  you  by  Mr.  Drew 
as  having  been  the  source  of  his  information  in  making  up  those  re- 
]>orts?— A.  Yes,  sir. 


By  Mr.  Walker: 
Q.  Is  it  customary  for  bank  examiners  to  look  over  the  individual 
ledger  accounts  in  making  an  examination  of  banks?— A.  Well,  I  Miink 
it  is  customary  for  them  to  take  th<'  h-dger  first. 

By  Mr.  Cox: 

Q.  If  a  bank  examiner  goes  and  makes  out  his  report  from  sheets 
furnished  by  the  ottieers  oi*  a  bank,  and  bases  his  reijort  upon  those 
sheets,  that  is  no  examination  of  a  bank  at  alH- A.  Of  course,  the  ex- 
aminer would  judge  of  them. 

Q.  But  that  is  no  examination  at  all— if  I  furnish  you  a  sheet  and 
you  eopy  it?— A.  No,  certainly. 

By  Mr.  Hrosius: 

(^.  You  have  tohl  how  you  deterinined  that  some  of  these  leaves  Avere 
torn  out  after  the  examiner  made  his  exainiiiation,  and  that  you  thought 
some  of  them  were  torn  out  prior  to  that  examination.  Can  you  state 
what  led  you  to  thatconclusion  .'— A.  1  found  accounts  missing. 

Q.  That  would  indicate  that  it  had  been  done  subsequently  to  the 
examination  * — A.  Y^es,  sir. 

O  Have  you  any  means  of  knowing  when  they  were  taken  out, 
whether  it  was  before  or  after?— A.  I  know  when  some  of  those  were 
taken  out.  It  was  done  .just  i)rior  to  the  visit  of  the  examiner  on  April 
9,  1889. 

By  the  Chairman: 

i).  That  you  know  by  setting  the  last  date  upon  the  page?— A.  Yes^ 
sir;  and  when  the  account  wasjeopened. 

(,>.  Taking  October,  1889,  which  is  the  one  we  were<hv«'lling<ui,  were 
there  amounts  due  to  individual  de])ositors  which  did  not  appear  up<m 
the  bookkeeper's  statements  furnished  to  Mr.  Drew,  and  from  which  he 
made  up  his  statement?— A.  There  were  acccmnts  due  individual  de- 
positors which  did  not  appear  on  these  at  all.  IMiere  was  one  item  of 
J?7G,00(). 

By  Mr.  15kosh  s: 

Q.  The  actual  deposits  not  entered  in  the  book?— A.  They  did  not 
enter  them  on  the  balance  sluK't  at  all. 

By  the  Chairman: 
q.  I  think  we  will  get  at  that  if  we  proceed  with  those  sheets. 

ByMr.  Wike: 
(,).  Yon  sav  you  know  that  tliese  sheets  wen'cutiuit.  Have  you  any 
other  information  than  what  is  simply  furnished  by  the  sheets  them- 
st'lves  ?— A.  That  is  about  all.  It  is  im])OSsible  for  me  to  tell  how  many 
of  these  sheets  were  t<un  out  at  the  period  of  October  r>r  April,  but  I 
know  that  in   ledger  A  to  G  some  of  the  leaves  for  the  April  period 

were  out. 

Q.  You  said  vcai  knew  that.  How  did  yon  know  it  if  this  was  the 
<mly  means  of  information  which  you  had?— A.  I  had  the  accounts  of 
A]>ril8  that  had  been  torn  out,  and  then  I  went  back  to  the  ledger  and 
found  accounts  reopened  <m  the  12th.  All  the  intervening  business 
had  been  put  aside  ami  entered  up  in  a  lump  on  the  auxiliary  books. 

By  Mr.  Dicker^on  : 
t^.  Aviiat  do  you  call   the   "jinxiliary  books?'"— A.  Tliey  are   the 


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■I 


MMMriMM 


452 


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IJSVESTIGATION   OF   NATIONAL    BANKS. 


scratch  books.     1  can  show  you  those  books  and  show  you  just  how 
that  was  done. 

By  the  Chairman  : 

Q.  You  called  upon  Mr.  Drew  for  sonic  assistan<'e  in  nuikini*  np  the 
statement? — A.  We  wrote  a  note  to  Mr.  Drew  askin«i^  him  if  he  had 
any  papers  that  would  assist  us,  and  Mr.  Drew  sent  us  down  this  bun- 
dle. This  is  the  <>rij;inal  packa.u'C.  In  tlie  bundh^  were  these  slieets. 
When  we  came  to  examine  them  we  fbnml  tiiese  three  bahmce  sheets, 
each  oni'  of  wliich  is  in  tlu^  handwritin^n  of  a  separate  bookkeeper. 
Tlnit  j^Jive  us  sonn'thin.ii'  to  wt)rk  (ui. 

Q.  State  wh'at  the  sheet  lias  <m  it. — A.  Tlie  sheet  has  nothing;  but 
the  ti^ures  on  it.  It  has  no  pajj^inni  to  refer  in  the  accounts,  nor  has  it 
any  names  as  to  wliose  accounts  they  are — nothin**-  but  the  tij»ures  of 
the  accounts. 

Q.  W^hat  is  the  total  of  that  as  it  api>ears? — A.  TJie  total  credit  bal- 
ance is  $415,120.4t>.  The  overdrafts  are  *l,07o.34,  nniking  the  net 
credit  $414,047.12. 

Q.  It  showed  that  nnu'h  due  to  dejmsitors? — A.  It  contains  a  sum- 
mary which  is  suppose<l  to  be  a  jiuide  to  the  individual  bookkeeper, 
and  gives  the  amount  of  J!^41;K(K>;5.(M;.  showing  a  difference  of  $1,014.06. 

Q.  Give  the  amount  actually  due  depositors  on  that  ledger  at  that 
date. — A.  The  A  to  G  ledger  gives  the  actual  amount  due  depositors  at 
$600,917.21,  with  -1^8,31  >0.s; J  overdrafts,  making  $r»02,.")2(».a8,  or  $179,- 
479.26  less  on  that  ledger.  It  is  only  one  third  of  the  books.  They 
manipulated  the  sunnnary  to  nmke  the  summary  agree  with  this. 

Q.  There  was  a  book  in  which  they  kept  the  summary.  Is  that  a 
correct  statement  of  what  the  sunnnary  shows? — A.  ^o,  sirj  I  have  an 
exact  copy  of  the  summary  of  that  datt;. 

By  Mr.  Buosii  s: 

Q.  W^liose  work  was  that  ? — A.  The  bookkeeper's  work. 

Q.  Who  is  he? — A.  Mr.  Maguire. 

Q.  Where  is  he?— A.   In  IMiiladelphia. 

By  the  ('HAiiniAN: 

Q.  He  was  indicted,  but  wasdisehargedon  the  grouiul  that  the  prepa- 
ration of  this  sheet  was  not  a  jmrt  of  his  otlicial  (luty  ? — A.  That  is  cor 
rect.  The  summary  is  a  small  bo<>k.  Just  about  this  siz<'  |indicating|. 
It  is  a  little  book,  and  opi'iis  in  this  way  |  indicating!.  That  started 
with  the  total  ])alance  due  individual  depositors  on  that  day.  They 
then  ent^^redon  the  other  side,  at  nigiit,  the  total  annnmt  of  checks  paid 
individual  depositois  for  that  ledger.  They  entered  the.  <-redits  on  the 
right-hand  page,  and  th«'  total  moneys  received  on  that  h'dger  during 
the  day  and  tbe  ditferene**  shows  in  gi'oss  the  total  amount  due  tlepos- 
it^ors  for  that  ledger.  This  is  an  exact  <'opy,  with  the  a  Iterations,, inter- 
lineations, and  evervthing  else  which  ap[)ear  on  that  page.  This  also 
shows  that  the  first  teller's  checks  were  $189.;>32.47.  The  first  teller 
paid  $19,332.47,  making  $170,0t)0  that  he  abided  to  the  checks,  thus 
raising  them  from  $19,332.47  to  $189,332.47.  whic^i  reduced  the  iiidi- 
vidual  deposits  $170,(^)0.  To  show  that  they  knew  that,  on  the  24tli  of 
October  they  arbitrarily  stu<k  in  $170,0(>t)  iu  lead  pencil  on  the  credit 
side,  simply  making  an  interlineatiou  with  lead  pencil.  Those  altera- 
tions, as  I  have  made  them,  show  exactly  how  the  figures  were  altered: 
they  show  the  alterations  of  the  figures  exai'tlj^  as  they  aj)X>ear  on  that 
page. 


ixvKSTK^A'riox  or  national  banks. 


453 


By  the  Chairman  : 

Q.  Those  were  the  bo()ks  to  which  Drew  had  access? — A.  Yes,  sir; 
he  had  access  to  thos<^ 

Q.  Will  you  look  over  that  sheet  which  you  haA'e  produc<Hl  here  and 
say  whether  there  are  alterations  or  interlineations  or  changes  of  any 
kind  shown  u|>on  the  facc^  of  tliese,  and,  if  so,  what  they  are? — A.  Yes, 
sir. 

By  Mr.  1)T<  kerson: 

Q.  Where  have  these  papers  been  since  you  liave  discovered  them? — 
A.  Under  lock  and  ke>  in  my  ]M)ssession.  In  answer  to  the  chairnum, 
I  will  say  that  on  this  sheet  tliere  is  only  (me  item  of  $3,000.  There  is 
an  item  of  $124.80,  which  you  will  find  in  the  thirteenth  line  from  the 
bottom  of  the  sixth  column. 

By  the  ( '  H Ai  r  :m A  n  : 

Q.  Here  it  is,  $124.80.— A.  Yon  Avill  tind  that  a  "3^'  has  been  nib- 
bed out,  and  it  is  changed  from  $3,1 24. SO. 

Q.  What  account  is  that? — A.  That  is  the  account  of  H.  W\  Green 
&  Co.    You  can  see  where  the  '*3"  has  been  rubbed  out. 

Q.  It  is  rubbed  out  and  not  included  in  tlie  total '! — A.  Yes,  sir. 

Q.  So  that  there  Avas  $3,001)  omitted  arbitrarily  on  that  sheet  by 
lubbing  it  out? — A.  \^es,  sir. 

Q.  Will  you  stJite  Avhether  there  were  other  accounts  at  that  time  on 
the  individual  ledger  A  to  G,  wliich  are  not  in  tluit  statement  at  all; 
and  if  so,  state  what  ac<'onnts  and  what  the  amounts  were? — A.  1  have 
seven  accounts,  amounting  to  $113,03.5.3.'»,  which  do  not  appear  on  that 
sheet. 

Q.  Take  the  next  sheet. — A.  The  next  is  ledger  !No.  2,  the  accounts 
of  H  to  O,  and  this  is  the  worst  one  of  the  whole  lot. 

Q.  State  the  total. — A.  It  shows  a  total  due  depositors  of  $507,- 
668..">0. 

Q.  What  was  the  actual  amount  shown  by  the  ledger  at  that  date  a9 
due  depositors ? — A.  The  actual  annmnt  shown  bv  the  ledger  was  net 
$623,905.51,  a  differ«M»ce  of  $1 1 (>,237.(H. 

Q.  Wliat  is  the  differc^nce  between  the  balance  sheet  there  and  the 
summary  book? — A.  They  show  the  summary  to  be  $508,414.95. 

Q.  Is  there  any  manipulation  there? — A.  On  the  summary  for  H 
to  O  they  first  manipulated  the  balance  on  the  9th,  which  they  alter 
from  $5(»7,000  to  $562,000.  They  then  entered  their  checks  of  the  10th 
as  $103,000.  lieally  tln^  checks  were  $1 78,000.  They  therefore  decrease 
the  checks  $75,(K)0,  and  they  decrease  the  balance  $5,000.  That  vir- 
tually makes  an  ci^arease  in  i)alance  on  that  summary  of  $70,0(^0.  But 
the  figures  arc  altered,  as  I  have  already  stated. 

*By  Mr.  Dickekson: 

Q.  Did  you  ascertain  this  from  the  de])osit  checks? — A.  1  had  to  go 
to  the  day's  work  for  that. 

Q.  You  got  it  from  the  individual  checks? — A.  No,  sir;  those  checks 
have  been  returned  to  the  dei)ositors.  1  had  to  take  the  list  of  the  checks 
themselves,     ^lost  of  those  checks  have  been  retuined. 

By  t  he  Ch Ai  k  m  a^  : 

Q.  This  balance  on  the  ledger,  II  to  O,  was  pre]uired  by  the  book- 
kee])er? — A.  Yes,  sir. 

Q.  Do  you  know  who  he  was? — A.  His  name  was  Frank  Lawrence, 
a  brother  of  Charles  Lawrence,  the  assistant  cashier. 


1 


J 


\  ' 


; 


;■  t 


t 


454  IXVESTIGATION    OF    NATIONAL   BANK8. 

Q.  Have  you  examined  that  sheet  so  as  to  deteriniue  what  alter 
atioiis,  it* any,  have  been  made  on  it? — A.   Yes,  sir. 

Q.  Give  them  to  us,  please. — A.  There  are  a  good  many  alt<*rations 
on  that  sheet. 

Q.  Take  the  alterations  on  the  tare. — A.  In  the  first  eohimii,  the  UUh 
from  the  top,  you  will  find  the  amount  of  >'r»:U.2(>.  That  shouhl  he 
$4,534.2(),  which  it  was  originally.  That  is  the  account  of  G.  B.  Haines 
&  Co, 

Q.  What  is  the  iiextf — A.  The  next  is  in  the  second  column,  the 
twenty-third  item  from  the  bottom,  which  is  j!«701.07.  That  should  be 
$7,701.07.     That  is  the  account  of  <Miarles  ,1.  Keene. 

The  iiext  one  is  in  the  third  column,  being  the  to])  item,  Ji5G47..')(>.    That 
correctly  shoukl  be  $l,iU7:M).    The  'Vl  '^  is  rubl)ed  oti*.     That  is  tlie  ac 
count  oi*  William  E.  Krewstm. 

The  next  is  in  the  fourth  column,  the  fortieth  from  the  toi).  The  item 
is  |50;^.81.  That  slnmld  be,  and  was  originally,  ^^1 1,503.81.  That  is  the 
ai'count  of  Charles  McFadden. 

The  next  is  in  the  tilth  column,  the  twenty-sixth  item  from  the  top, 
$727.r)0.  Correctly,  it  is  $4,727.50.  Tliat  is  the  account  of  A.  L.  Megil- 
ton.    The  figure  4  has  been  rubbed  out,  as  you  can  see. 

The  next  is  in  the  sixth  column,  the  thirty-first  from  the  top.  The 
item  is  $418,  and  was  formerly  $(»,418.  That  is  the  account  of  I).  1*. 
Nichols. 

The  next  is  in  the  sixth  <olumn,  the  twentieth  from  the  bottom,  and  is 
$223.14.     That  should  be,  and  Avas,  $3,223.14. 

The  next  is  in  the  sixth  column,  the  twentv-eighth  from  the  bottom, 
and  is  $494.04.     That  should  be  $23,494.04. 

The  next  item  is  the  sixteenth,  and  is  $99(>.     That  should  be  $0,090. 

By  the  Chairman  : 
Q.  What  is  the  total?— A.  $0.5,000. 

By  Mr.  JiROSius: 

Q.  Did  you  discover  these  erasures  and  alterations  of  this  sheet  by  an 
inspection  of  the  sheet  itself? — A.  1  did. 

Q.  And  you  verified  those  discoveries T — A.  Yes,  sir;  by  going  to  the 
ledger,  examining  the  sheet  car<^fully  an<l  <*ritically  with  a  glass. 

Q.  Did  you  make  the  discovery  from  an  insi)ection  with  the  naked 
eye  or  did  you  a]>i)ly  the  glass? — A.  I  applied  the  glass. 

Q.  You  then  found  more  omissions? — A.  Yes,  sir. 

B V  Mr.  Walker  : 

Q.  How  many  did  you  fail  to  discover  with  the  glass  that  you  sub- 
sequently found  by  comijaring  them  with  the  ledger^ — A.  I  discovertMl 
all.  1  exaniined  all  the  sheets  with  a  glass.  Some  1  could  see  with  the 
naked  eye. 

Q.  You  found  none  except  what  you  found  with  the  glass? — A.  ^'o, 
sir;  not  of  that  character. 

By  the  Chairman  : 

Q.  Will  you  ])lease  state  what  accounts,  if  any,  were  omitted  from  this 
sheet  that  were  in  the  ledger? — A.  Tlu^re  were  sixteen  accounts  leftcmt, 
amounting  to  $47,051.75.     They  are  as  follows: 

Saiiiiiel  D.  Hottner $750.  (K> 

< Jeo.  W.  Hopkins HO^J.  5S 

Virginia  Jju'kaou,  3  per  cent S^O.  <H) 

H.  0.  Johnson 343.42 

Naomu  J  ohnsou - 3, 000. 00 


INVESTIGATION    OF    NATIONAL   HANKS. 


S.  J.  Johnson 

Thomas  .1.  Kellcy 

John  A.  Kclh'V 

.lohu  A.  Kelley  A.  Co. 

II.  H.  Long 

Neal  McLaughlin 

h.  M.  Maltbey 

(i.  W.  Marsh,  trustee 

.lohn  A.  Marsh 

Order  of  Tonty 

John  Wanamal 


455 

.  $L000.00 

95.  H8 

.   20,63.S.57 

.     1.95L82 

28.19 

.     1,  250. 00 

59.  2S 

.500. 00 

.     2.  (XK).  00 

..   n,  023.  34 

. .     3.  805.  92 


Si 


Q.  Will  vou  state  with  re -a  rd  to  those  accounts  whether  they  were 
torii  out  of  the  book  or  whether  the>  were  in   the  letl-er?— A.   Ihose 

accounts  were  in  the  ledger.  ...  +i  ...^      a 

U    Are  there  any  accounts  t(»rn  out  that  do  not  appear  tlitie.— a. 

There  were  torn  out  of  that   ledger  HU  pages,  containing  accounts 

amounting  to  $40,000,  which  1  hav<*  not  at  all.    They  were  not  on  the 

ledger. 

By  Mr.  Dickeeson  : 
Q.  Could  not  the  loss  of  that  many  leaves  in  a  book  have  been  de- 

tex?ted  by  an  ordinary  examination  ?— A.  I  should  think  so. 

By  the  Chairman  : 
Q.  Take  the  next  ledger.— A.  Thv  \w\t  hnlger  is  P  to  Z. 
Q.  Whose  book  is  that?-A.  That  is  the  l>ook  ot  (diaries  R.  Lge. 

By  Mr.  Brosilts: 
Q.  Where  is  he?— A.  He  is  in  Philadelphia. 
The  Chairman.  He  w^as  also  discharged  by  the.indge. 

By  Mr.  Cox: 
Q.  On  the  ground  that  they  were  not  doing  ofticial  business?— A.  It 
was  decided  that  it  was  not  then-  duty. 

By  the  Chairman: 

(I  Please  state  the  amount  of  this  statement  and  the  ^li^crepandes.— 
A.  This  statement  shows  amount  due  depositors  m  ^^y^^"":  ^^J,^^^^^^^ 
and  overdrafts  $7,040.12,  making  net  due  dep()Sitors  '"^^I'V^^^^/^^-    /^Jf 
summary  at  that  time  calls  for  -f  178,4  7l>.00,  a  ditterence  ot  only  $31.10 

Q  Will  you  state  wliether  or  not  the  summary  shows  evidence  ot 
manipulation!— A.  The  summary  shows  evidence  i)f  manipulation  to 
the  amount  of  $5,000.  The  individual  deposits  have  been  raised  trom 
$54  702  18  to  $50,7G2.1<S,  increasing  the  deposits  at  that  time  and  in- 
creasing the  balance  also,  so  as  to  make  the  balance  of  the  ledger  agree 
with  this. 

By  Mr.  Dickerson: 

Q.  I  see  a  little  pencil  figure  appears  here.— A.  That  is  an  exact 
cov)V.    The  only  considerable  alteration  liere  is  $.>,000. 

Q.  Is  the  original  in  ink!- A.  This  is  a  precise  copy.  \N  hen  you  see 
this  naiie  vou  see  an  exact  facsimile  of  the  original. 

Q.  Could  not  a  man  of  ordinary  skill  take  those  ledgers  and  discover 
those  things?— A.  1  do  not  see  why  he  could  not.  *     t  ^i  •   i 

q.  He  could  not  fail  of  discovering  those  discivijancies.— A.  1  think 

not. 

By  Mr.  Brosii  ^«:  * 
(}.  Did  you  have  any  means  of  discovering  errors  in  these  accounts 
that  were  not  accessible  to  the  bank  examiner?— A.  Xo,  sir. 


•II 


450  INVESTIGATION    OF    NATIONAL    HANKS. 

By  the  (  'haiuman  : 

Q.  Take  that  sheet,  i)lease,  and  your  iiieinoraiulum  and  tell  ns  what 
changes  or  alterations  have  been  made  on  them.— A.  By  the  books  1 
tbuud  due  de])ositors  at  that  date,  gross,  .t47r»,7;*,L'.41,  oveidiafts 
$22,9r)r>.()4,  a  ditteieuee  on  th<>se  ledgers  of  .lf'274,272.68.  The  sheet  is 
elean.  There  Is  no  alteration  on  that  sheet,  and  from  mv  examinatiou 
and  from  the  absolute  (orreetness  and  absolute  want  of*  the  slightest 
<hange  in  ihv  footings,  I  am  satisfied  that  anotln^r  sheet  was^nade 
out  and  tigured  up(ui  to  bring  It  down  to  a  difterenee  of  only  ¥;{1.10, 
and  then  it  was  copied;  l>eeause,  in  addition,  there  are  neither  carry- 
ing figures  nor  the  slightest  alterations. 

Q.  You  think  this  sheet  was  copied  from  that?— A.  Yes,  sir:  and 
there  is  $274,000  different'e  between  that  and  the  ledger. 

Q.  And  the  other  sheet  was  destroyed? — A.  Yes,  sir. 

Q.  Can  you  tell  us  what  amounts  have  been  left  out?— A.  The  ac- 
counts left  out  amount  to  $S(;,00r».(;.S.    They  are  as  follows: 

L.  1).  Kichardsou ^o  Q(jq  ()() 

J.  astaiihop.' 1 "!!!!!!!!!!!!"!;; !!;!!!";;   i^ocxux) 

C.  W.  Sttrlinjr,  aj;.uit a->3.  01 

Peiiuy-suvmgs  tniul 76,  (MM).  00 

Lv/./.w  V  an  I  -eei- •joq  -ui 

K  v\a]sh.     1,000.(K) 

g-  ,Y«l^''^^<^ 5,000.00 

H.  II.  1  ard,  manager 24 1.  11 

A.  B.  Sayer "       11 

A.  M.  Sanford ^ ........ .V. .V.V.     V  l!(K) 

w.  Strickland !!].!]!*!!!*!!.'*!!."!!        g!oo 

M.  E.  Ward \^^ 

Petty baiames '--*-!! -!;i!!!!x;i;;;';!;;;i;;;i;;;;  i,063!83 

Q.  What  are  petty  balances?— A.  They  are  small  balances  of  parties 
who  have  ceased  to  do  business. 

Q.  What  are  tlie  other  changes?— A.  The  other  principal  changes 
are  where  the  balances  were  correct  on  the  ledger,  but  were  lalsitied  in 
the  entry  on  the  sheet  by  <lropi)ing  the  thousands. 

Q.  How  much  did  that  amount  tof— A.  $180,000. 

Q.  How  many  items?— A.  Fifty-eight  items. 

By  Mr.  Dtckekson  : 

Q.  It  only  required  a  comparison  between  the  sheets  furnished  him 
and  the  ledgers  to  discover  it?— A.  It  stands  on  the  face  of  the  ledger. 
By  the  Chaikman: 

Q.  In  these  instances,  what  was  done  was  to  drop  the  thousands  out 
of  the  balances?— A.  That  Avas  all;  they  would  simply  drop  or  leave 
out  the  thousands. 

Q.  That  amounted  to  how  much?— A.  $180,100. 

Q.  Please  give  the  names  and  amounts.— A.— 

Robert  Paul ao  /yy^ 

C.  B.  Partridge  iS:  Co ."-".'-""-*."!!.'*'.'.*'"!!'.'".*.".*! '>  000 

The  Pennsylvania  Express  ( 'onijiany ..!!..'*.!!.. 2  (K)0 

Presbyterian  Publisliing  Company  '. !'!....!!. •>'  OOO 

Thomas  M.  Pierce .' ."..[][..]..[].. "^^ 000 

J.  W.  Pepper ' " "  * ' "'  .^^/j 

c.  F.  Pettrick !!.'!."..'."'.;.* o  \m 

J.    J.    F.    Popp 9'  ^^yQ 

J.  J.  Pyle ...........]...."..[ 5  000 

J.  G.  Ramsdell !>'  Q^r^ 

F.  Reed,  general  agent r'  (uyn 

Wm.Reed f. '''25 

Reserved  fund,  G.  T.  O.  T 10  000 

J-^^^^^y V.V...V.][V."V. ..[[..[["     aim 


INVESTIGATION   oK    NA'nONAb    liANKS.  457 

Relief  fund,  O.  of  Amity $2,000 

Ridley  Building  Association 2,000 

Ridley  Park  Cold  Spring  Water  Company 2, 000 

J.  Robinson 4»  000 

( i .  S  t  ro  n  g - .  000 

(j.  Scattergood ^>  000 

.1 .  A.  Shaw •">»  000 

R.  Steel .%000 

W.  B.Smitb 2,000 

.J.  K.  Shoemacker 2, 000 

E.  Snider ^.000 

I    I*  Twiddel I                                                                                               '^t  000 

Shoemacker  Piano  Companv ^'  ^^00 

R.  R.  Thomas  &  Co '. -^,000 

Kansas  Loan  &  Trust  Co 11, 000 

Keystone  Watch  Club  Co ^,000 

.) .  F.  Turner ^^j  000 

C.  S.  Turnbull 1, 000 

Trimbl  v,  Hunt  &  Co 3, 000 

Union  Real  Estate  Co 1.000 

H.  VanBeil4&  Co «,  000 

H.Beare ^^000 

S.  Van  Horn 1, 000 

.T.  Wanaraaker,  exchange  account 1»  000 

Wanamaker  &  Brown 2,  000 

W.  W.  Wallace -  -  -   ^00 

W.  R.  Warner  ifc  Co 3,000 

F.  W.  Welton  &  Co 2, 000 

L.  R.  Wanaraaker I?  000 

W  al  1  &  Oc k  8 1 ,  Of M  > 

C.  H.  Wallace 1,000 

M.  H.  Weiner 1,000 

Wendell  &  Smith 1,000 

S.  B.  Wentz 1»000 

A.  L.  Weatherell •'5,000 

^Vhitesides  &.  McLanahan 0, 000 

O.  Wilson 14,000 

.J.C.Wilson 2,000 

D.S.Wright ^.000 

J.  A.  Wllbour i>,000 

J.  R.  White "i.OOO 

J.  T.  W^oods '^OOO 

Richard  Zeckwer - -. 1, 000 

Making  57  accounts,  with  a  total  of 1^6. 100 

By  Mr.  Dickerson  : 
Q.  Were  these  the  names  that  actuaTly  appeared  upon  the  individual 
ledger? — A.  Yes,  sir. 

By  the  Chairman: 

Q.  And  the  accounts  actually  appear  upon  this  statement,  but  the 
thousands  are  left  out?— A.  Yes;  1  had  better  make  a  qualification. 
From  the  appearances  on  the  face  of  this  ledger  it  is  possible  that  some 
of  these  balances  may  have  been  rubbed  out  on  the  face  of  the  ledger 
where  it  is  dirty,  showing  the  appearance  of  tignres  being  put  back  in 
another  handwriting  than  that  of  the  bookkeeper.  1  took  it  just  as  it 
is  on  the  face  of  the  ledger. 

Q.  Is  that  true  of  all  these  58  accounts?— A.  It  is  only  true  of  some. 
A  good  many  are  not  rubbed  out  at  all.     Some  are  ])erfectly  clean. 

Q/  Does  this  rubbing  out  or  erasure  occur  very  often  in  correct  bank- 
ing?—A.  No,  sir;  but  those  ledgers  for  1889  Avere  the  dirtiest,  the 
most  altered  set  of  bank  ledgers  I  ever  saw. 

Q.  Now,  please  get  back  to  the  statement.  Is  there  any  other  alter- 
ation or  manipulation  of  the  figures  shown  upon  that  statement  other 


i» 


•  *i 


i 


4- 


i  :t 


ii  I  ^ 


458 


INVESTIGATION   OF   NATIONAL   BANKS. 


INVESTIGATION   OF   NATIONAL   BANKS. 


451) 


tlian  you  have  testified  to?  You  have  jiiven  the  omitted  accounts  and 
tlic  accounts  in  which  the  amounts  have  been  altered.  Are  theie  any 
others* — A.  Those  are  the  princi]>al  methcxls  em|>kn'ed  on  tins  led«;er. 
They  deducted  the  checks  thai  eanu'  trom  tin*  cleaiiiij;  lioust'.  wliicli 
amounted  to  !1<22,0(K),  redncinj-  the  balances  previous  to  takinf»-  oti  the 
t>alances  on  here.  They  did  not  do  that  with  all  of  the  three,  but  only 
on  two.  This  balance  was  made  out  for  the  close  of  October  9.  They 
wcmld  take  the  checks  that  came  in  on  the  morning  of  Oetobci-  10  as 
though  thev  had  been  i»aid  the  day  before. 

Q.  That  altered  the  true  balance  by  alxnit  55<2l».(M>0  on  that  led^^er?— 

A.  Ves,  sir. 

Q.  The  examiner's  report  of  tin-  amount  (hn*  depositors  on  that  date, 
October  9, 1S89,  is  substantially  tin*  sann-  as  the  footingsof  these  state 
„H»]Hsf — A.   Yes,  sir;  and  these  other  statements  foot  uj)  substantially 
the  same  as  the  individiud  deposit  account  in  the  general  ledger.     The 
general  ledger  ami  the  bank  examiner's  report  are  the  same. 

Q.  Is  there  anything  else  to  be  said  as  to  the  condition  of  the  bank  ? — 
A.  Yes,  sir;  they  maniimlated  their  general  ledger.  This  is  the  period 
1  spoke  of  where  I  found  the  two  sheets.  They  had  begun  at  the  be 
ginning  of  the  week  ami  ended  in  the  middle  of  the  week,  and  they 
immediately  startetl  a  new  sheet.  Their  new  sheet  began  on  the  Sth 
of  the  month.  The  original  sheet  had  been  running  up  to  the  l(»th, 
but  I  f(mnd  their  old  one.  They  left  the  new  sheet  for  the  examiner  to 
work  on,  and  he  thought  it  was  tin*  original. 

(^  What  are  the  <lifterences?— A.  There  is  an  arbitraiN  reduction 
in  the  new  sheet  of  .$10(MMK)  in  bills  discounted.  They  arbitrarily  re- 
duced the  individual  deposit  account  $10(MMM>.  They  left  the  footings 
as  they  were  originally.  The  verification  of  the  footings  showed  >«100,0(M> 
ditference.  The  balance  sheet  was  out  of  balance  .1<1()(),00(».  They 
changed  the  balances  of  bills  discounted,  and  did  not  change  the  deposit 
account  until  the  following  day,  so  that  they  were  really  out  of  balance 
$1(K),0()<).     While  it  ai)pears  on  the  face  to  be  exact,  it  is  out  SIOO.OOO. 

Q.  When  ycm  add  up  the  column  it  is  *10(),0t)0  out  of  the  way?— A. 

Yes  sir 

q!  The  bank  examiner  must  have*tak<'n  the  footings  as  they  were  ?— 
A.  He  must  have  done  so. 

By  Mr.  Walker: 

Q,  There  seems  to  be  conclusive  evidence  that  the  bank  examiner 
did  not  run  those  footings  u[)  at  all?— A.  That  f  100,000  was  replaced  on 
the  12th.  On  the  t)th  they  arbitrarily  reduced  the  individual  deposits 
$100,000.  They  also  charged  individual  checks  on  the  sheets  as 
}??249,450.(;3,  whVn  really  only  $179,4.V.>.(>;5  were  paid,  thereby  reducing 
the  individual  deposit  account  on  the  sheet,  making  a  total  reduction  in 
the  individual  deposit  account  of  *170,tKM).  This  they  rei)laced  by  ar- 
bitrarily (^editing  the  sheet  with  .^170,000  on  the  12th  of  O(;tober. 
They  put  it  in  the  summary  on  the  24th. 

Q.  Has  this  testimony  of  yours  been  published  anywhere?— A.  I 
have  given  it  before  a  court  exactly  as  I  have  given  it  here.  I  do  not 
know  that  it  has  been  published. 

Q.  What  is  the  technical  name  of  the  i)roceedings?— A.  It  was  used 
against  K.  L.  Maguire  and  A.  Frank  Lawrence  and  ('has.  li.  Ege,  under 
the  <harge  (►f  making  false  entries  and  making  false  statements. 

Hy  Mr.  VVike: 
Q.  They  were  tried  on  an  indictment? — A.  Ves,  sir. 


By  Mr.  Walker  : 
Q.  Do  you  remend)er  the  date  on  which  you  gave  that  testimony?— 
A.  It  was  in  February,  in  the  United  States  circuit  court.  The  trial  in 
which  the  details  came  out  was  in  rcgar«l  to  this  shc<'t  In  le.  Ail  the 
details  were  not  brought  out  because  of  the  de<-ision  of  the  judge,  i  hey 
also  reduced  the  amount  as  due  from  the  Tradesmen's  Natn)nal  Kank, 

of  New  York,  $48,00(K  ^      ^        wi       i 

Q,  Do  you  mean  it  is  a  (diange  made  on  the  Jiew  sheet,  ami  thcreoy 

making  a  difference  between  the  new  and  the  old  sheet?— A.  \  es,  su\ 
Q.  Due  to  or  from?— A.  Due  from  the  Tradesmen's  to  the  Keystone 

Bank. 

By  Mr.  Wikk: 
Q.  You  say  that  reduced  the  amount.  Why  should  it  do  so?— A. 
Thev  were  carrying  a  very  heavv  indebtedness  due  a  country  ban.v, 
aud'  they  had  reduced  that  .^48,000,  and  had  no  other  place  to  get  it 
from  Avhen  thev  re<luced  the  indebtedness  to  the  country  bank.  Ihe 
account  was  reduced  on  one  si<le  .^48,000.  1^he  other  bank  owed  them 
$78,000,  and  that  is  the  onlv  brdancte  they  had  to  work  on.  They  o\yed 
a  little  country  bank  in  Lewisburg,  Pa.,  .^48,000,  and  tliey  wii>ed  that 
out.  But  they  put  it  back  on  the  12th  of  the  month.  ( )ne  was  done  on 
the  12th  and  the  other  cm  the  14th. 

By  Mr.  DlOKERSON: 
Q.  These  things  did  not  occur  on  the  ledger  ?— A.  They  did  not  keep 
any  ledger. 

By  the  Chairman  : 

Q.  They  slipped  one  sheet  out  and  put  the  other  in  plai'c  of  it?— A. 
Yes,  sir.    Those  were  made  on  the  sheet,     i  was  speaking  of  the  gen 
eraHe(b»er  sheet.     These  were  made  by  (/harles  Lawrence. 

(>  In  whose  handwriting?— A.  In  the  handwriting  of  Cl^arles  Law- 
rence, the  assistant  cashier.     Most  of  the  changes  on  the  ledg(4S  are  m 

his  handwriting.  ,      ,  .  ...  ^  . ,    ^ 

Q  State  what  the  situation  of  the  banking  association  was  at  that 
date.  Whatwas  the  condition  of  it?— A.  It  showed  at  that  date  that 
there  was  over  a  million  dollars  deficiency. 

By  Mr.  Walker: 
Q.  How  long  before  or  after  the  examination  ?— A.  It  was  on  the  date 
of  the  examination. 

« 

By  the  Chairman: 

Q.  1  want  to  know  whether  it  officially  ai»pears  in  the  re(!ord  that 
these  lists  (;ame  from  the  hands  of  Mr.  Drew  and  were  indorstnl  by  liim. 
1  think  the  indorsements  ought  to  go  into  the  record  to  show  that  he 
has  made  calculations  on  them.  .    ,         , 

Mr.  Dk^kekson.  The  witness  said  a  while  ago  they  were  indorsed 
aud  that  they  were  received  by  Mr.  Drew. 

The  Witness.  They  are  indorsed  in  the  handwriting  ol  Mr.  Drew. 
Here  is  the  package  in  which  they  came  to  us. 

By  the  Chairman  : 


Q.  Please  pass  to  the  next  one.— A.  The  next  one  is  July.''.. 

t  year?— A.  Eighteen  hundred  and  ninety.     That  was  al 


so 


Q.  What  J  ctii  i — -T^.  ^^'a 
the  date  of  a  bank  examination. 

Q.  (live  the  differences.— A.  I  found  at  that  time  thai    t.ie  gross 
amount  due  individual  depositors  was  $1,742,000. 


i.v 


'  d' 


♦•II 


5ti 


4C0 


TNVKSriGATION    OF    XA'IIONAL    HANKS. 


INVESTIGATION    OF    NAITONAL    BANKS. 


4 


Q.  From  which  ledger  ?~A.  The  gross  amount  from  the  iiulividuiil 
ledgers  is  $1,742,000.  There  are  $61,000  overdrafts,  making  the  net 
amount  due  individual  depositors,  as  sliown  by  the  individual  ledjier, 
t^  be  $1,081,(K)0.  '  ' 

Q.  What  did  the  general  ledger  show  ?— A.  The  general  ledger  showed 
$1,081,000,  making  a  difference  of  $599,708.;57.      ^ 

Q.  What  did  the  examiner  state  at  that  time?— A.  Jj«  1,081, 520.07, 
the  same  as  the  general  ledger. 

Q.  V\'hat  other  differences  are  there  ?— There  are  false  charges  made 
on  this  ledger  to  the  amount  of  $2(;i,0()0.  Previous  to  the  taking  off 
of  the  balances  the  balances  were  reduced. 

Q.  Where  did  you  get  that  item?— A.  By  going  to  the  ledger' and 
making  my  list. 

Q.  Did  you  have  Mr.  Brew's  list?— A.  I  have  got  his  book.  My  as- 
sistant copied  the  work  from  it,  we  not  desiring  to  use  his  book. 

Q.  Who  was  Mr.  Drew\s  assistant?— A.  His  assistant  was  a  man 
named  Jones. 

Q.  What  is  the  difference  between  the  actual  balance  and  the  bal- 
ance of  Jones?— A.  I  make  it  $r)09,708.;i7,  altlnmgh  Mr.  Jones's  memo- 
randum  made  a  difference  (»f  $185,403.02.  J  had  been  informed  by  Mr. 
Drew  that  there  was  a  difference  of  $185,000,  and  he  explains  that  the 
ledger  was  manipuhited  in  the  nighttijue,  and  when  he  came  ba^k  the 
next  day  to  recheck  the  work  he  found  it  all  right. 

Q.  Was  there  a  Sunday  intervening?— A.  Yes,  T  so  understand:  it 
may  have  been  the  4th  of  July  that  intervened. 

Q.  You  have  the  statement  of  the  a<-count  which  was  taken  off  by 
Jones,  as  Drew's  assistant,  and  which  Drew  has  furnished  you  ?— A. 
Yes,  sir. 

Q.  What  does  that  show?— A.  It  shoNvs  the  original  difference  was 
$185,403.02. 

Mr.  Payson.  Does  Mr.  Barrett  state  that  at  the  time  Mr.  Drew  or 
Mr.  Drew's  assistant  learned  that  there  had  been  manii>ulation  of  the 
books  ? 

The  Witness.  They  have  learned  that  since.  Thev  told  me  since  of 
Lawrence/s  laughing  and  telling  them  that  he  came  down  to  the  bank 
with  Mr.  Marsh  in  the  night  and  that  these  alterations  were  made,  so 
that  when  they  came  the  next  day  they  found  that  thev  thought  they 
evidently  had  made  a  mistake  and  that  the  ledger  was  right. 

By  Mr.  Dickeuson: 

Q.  It  was  the  same  ledger  that  they  had  access  to?— A.  Y'es,  sir. 

Q.  Were  these  changed  back  again  ?— A.  I  do  not  know  how  that  was. 

Q.  Were  the  erasurers  made  l)y  scratchers  ?— A.  There  are  erasures 
or  scratches  of  all  kinds.  When  Mr.  J.awrcuce  went  back  and  fixed 
them  I  couldn't  tell.  To  give  all  the  rubbed  and  scratched  items  and 
alterations  would  take  more  time  than  1  would  be  able  to  give  to  it. 

Q.  From  your  examination  you  tind  there  was  a  difference  of  nearly 
$600,000?— A.  Y^es,  sii*;  exactly,  at  that  date,  taking  the  face  of  the 
books  as  they  stood. 

Q.  Did  you  check  back  this  matter  of  Drew's?— A.  1  made  an  exact 
copy  and  I  checked  back  by  the  copy. 

Q.  Did  you  find  the  difference  beWeen  these  statements  taken  by 
Jones  and  the  balances  as  they  appeared  upon  the  ledger?  I  want  to 
find  out  if  you  can  give  any  explanation  as  to  the  differences  between 
those  statements  of  the  accounts  on  the  individual  ledger  and  the  one 


461 


The  items 


you  got? — A.  Certainly;  here  is  a  memorandum  of  that, 
are  deducted  here  on  the  A  to  G  ledger. 

Q.  There  is  a  difference  between  y<m  and  Mr.  Jones?— A.  Yes,  sir. 

Q.  Wliat  is  the  next  item  ?— A.  The  items  in  the  H  to  O  ledger  show 
that  there  was  a  difference  of  about  -*2o5,000  in  round  figures,  an<l  <m 
the  1'  to  Z  ledger  there  is  only  a  differeu(;e  of  a))Out  $2,000. 

Q.  How  do  you  account  foi-  these  differences,  and  where  did  you  find 
them?— A.  They  are  scattered  all  tlirough.  In  the  ledger  A  to  (i  tiny 
run  up  to  page  1522. 

Q.  How  was  that  done?— A.  It  was  done  on  either  one  side  or  the 
other,  sometimes  tlirough  accounts  being  left  <mt.  For  instance,  in  the 
eertificate  of  dei)osit  account  $16,755.4t)  were  left  off.  On  one  account 
$100,004.72  was  left  off*  entirely. 

By  Mr.  Dickeuson  : 

Q.  Whose  account  was  that?— A.  That  was  the  a^-count  of  Drake  & 
Stratton,  I  think.  That  page  may  have  been  torn  out,  as  this  was  the 
]ieriod  they  adopted  the  policy  of  taking  them  out  and  i)asting  them  in 
again.    This  is  the  cmly  ])eriod  in  which  leaves  were  pasted  in. 

Q.  You  have  examined  the  several  rei)orts  to  the  Comptroller  made 
by  the  examiners — A.  I  have  examined  some  of  them. 
'  Q.  Did  you  ever  notice  in  any  statement  of  an  examination  of  the 
bank  where  the  examiner  made  the  statement  that  these  books  were 
manipulated  or  that  leaves  were  extracted  from  them?— A.  No,  sir; 
not  that  I  have  seen. 

Q.  That  was  never  disclosed  to  the  Comptroller?— A.  The  reports 
here  do  not  mention  that. 

By  tlu' Chairman: 

Q.  1  would  like  to  get  upon  the  record  as  clearly  as  I  <;an  what  this 
difference  is.  Is  there  anything  here  that  will  enable  you  to  tell  exact 
items  ?— A.  I  liave  all  the  items  relating  to  the  fictitious  charges,  because 
they  api>ertain  to  the  same  bookkeeper.  We  were  at  tliat  time  working 
np  the  case  for  the  district  attorney. 

Q.  ITltimately,  as  a  result  of  this  liguring  of  Jones  and  his  exandna- 
tion  of  the  acccmnts,  the  examiner  made  a  report,  as  you  know,  which 
stated  the  items  due  deposit;ors  was  the  same  as  it  is  stated  on  the  gen- 
eral ledger? — A.  Yes,  sir. 

().  Y<m  have  testified  to  discrepancies  between  the  individual 
ledgers? — A.  Yes,  sir. 

Q.  Have  you  got  items  to  show  tljat? — A.  I  have  all  (jf  them  here. 

(^.  It  is  a  comparison  between  the  examiner's  report  and  the  individual 
ledger,  but  is  it.  a.  comjuirison  as  between  the  two  ledgers  of  the  bank?— 
A.  Yes,  sir. 

Q.  Why  is  the  individual  ledger  so  much  larger  than  the  general 
ledger  on  that  date?— A.  On  ledger  A  to  (I  there  are  fictitious  charges 
made  for  this  period  amounting  to  $42,775.35. 

Q.  What  is  the  character  of  those  charges  ?— A.  They  were  charged 
as  if  checks  had  been  paid  when  no  such  checks  had  been  paid,  and  the 
jiinounts  as  charged  were  afterwards  returned  arbitrarily  to  the  accounts. 

Q.  What  is  the  next  item  that  goes  to  make  up  this  amount?— A. 
The  A  to  G  ledger  is  the  ledger  that  formerly  contained  the  manipu- 
lated balances  of  John  Bardsley,  not  reducing  it  in  one  lump,  but  in 
several  items  of  $10,000  each. 

Q.  How  was  that  done?— A.  By  simply  dropping  <mt  the  $10,(KH> 
in  several  items  and  returning  them  afterwards.     John  Bardsley  kept 


462 


INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


463 


i 


^ 


liii'ge  l)alances,  and  wlieii  they  would  till  out  balances  they  would  ^o  to 
work  and  rub  out  10  and  make  it,  for  instance,  $41(),0()()  instead  of 
$420,(>(X>,  and  so  on. 

Q.  Are  you  usinj:^  illustratioBs,  or  are  you  j;ivin<>-  aetual  transac- 
tions?— A.  I  am  giving  actual  transactions.  There  were  four  items 
reduced  at  this  period,  and  J!^4(),0(M»  was  returned  to  John  Bardsley's 
account  (m  the  8th  after  the  examination  closed. 

Q.  What  other  accounts  are  there? — A.  Then  for  the  H  to  ()  ledger 
there  Avere  leaves  tf)rn  out.  The  accounts  show  \NiuM'e  they  were 
pasted  in.  The  accounts  thus  torn  out  amounted  to  }!<1-<»,0(K),  and  one 
account,  >i<l2,(MM)  overdraft. 

Q.  Were  those  accounts  which  are  shown  on  y(mr  statement  included 
in  the  accounts  taken  off  by  Joaes? — A.  They  were  not  in  Jones's  ac- 
count. 

Q.  And  your  explaiuition  of  that  is  that  the  leaves  were  taken  out 
subsequently  and  returned? — A.  Yes,  sir;  because  I  lind  them  pasted 
in  the  book. 

By  Mr.  VVike: 

Q.  Is  there  any  data  which  shows  that  those  were  left  out? 

The  riiAiKMAN.  They  are  not  in  Jones's  account. 

The  Witness.  These  aiufmnts  rej ►resented  on  those  ac<Mmnts  were 
not  on  his  balanc<'s,  and  the  leaves  show  that  they  were  pasted  in.  That 
is  clear. 

By  Mr.  Dickerson  : 

Q.  The  inference  is,  they  w<'re  out  when  he  k)oked  at  the  book? — A. 
Yes.  Then  there  an*  false  cliar;;es  made  in  the  U'dp'i'  FT  to  ().  There 
are  15  accounts  amountin*;'  to  >«71J7t).lH. 

Q.  Were  those  charges  of  cliecks? — A.  Those  were  false  charp's  of 
checks  ? 

Mr.  DiCKEUSON.  They  charged  ajiainst  the  indivi<lual  and  credited 
to  the  bank. 

Th4'  Witness.  There  was  nothin-i  done  on  the  credit  side,  it  did 
not  g'o  into  the  auxih'ary  books. 

By  Mr.  Bkosius: 

<»>.  Did  those  false  charj^es  continue? — A.  No;  they  were,  restored  on 
the  Sth  of  Januarv. 

i).  Of  conrse,  I  take  it,  there  was  a  column  showin<;'  wliere  tliese 
matt4*rs  were  poste*!  from? — A.  There  nev<'r  was  anything;  t{>  show 
that. 

Q.  They  never  liad  anything;  to  show  wheic  the  items  came  from? — 
A.  No,  sir;  except  in  cases  of  loans  and  <lisconnts  cu-  where  they  lutd 
foreign  accounts.     There  was  n«»thing  else. 

By  Mr.  Dickekson. 

Q.  You  say  these  leaves  wei*e  out  when  Jones  mach*.  this  examina- 
tion?— A.  Yes,  sir. 

Q.  In  the  cutting  out  of  leaves  what  evidence  could  a  man  have  out- 
side of  the  numbering  of  the  pages  ?  Ccmld  he  see  where  the  s<'issors 
or  knife  had  been  used  ? — A.  Not  if  the  page  that  mates  it  was  taken 
out. 

Q.  They  clipped  both  out? — Yes,  sir. 

By  Mr.  Biiosirs. 
Q.  TJiese  ledgers  were  paged.    i:Jome  one  t<}stified  that  these  were 


not  Dao-ed.— A.  I  said  one  individual  ledger,  opened  on  the  1st  of  Jan- 
uary, 1891,  was  not  paged.    All  back  of  that  were  paged. 

By  the  Chairman. 
Q.  The  individual  ledgers  are  paged  up  to  January,  1801.     The  gen 
era!  ledger  is  not  paged  at  all. — A.  No,  sir. 

By  Mr.  Brosius. 

Q.  Some  witness  testified  that  the  ledger  was  not  paged. 

The  Chairman.  That  testimony  referred  to  the  individual  ledger 
that  was  opened  on  the  1st  of  January,  181)1,  and  used  for  a  brief 
perioZ     It  does  not  refer  to  the  individual  ledger  that  we  are  now 

^'^S)^1^ESS.  In  the  ledger  V  to  Z  for  this  f "- j;^™)!^^^*^!^ 
false  charges  made  in  the  accounts  amounting  to  .^li)0  2.3(>..)3.  i«'^^^ 
as  a  false  balance  at  that  time  on  the  face  of  the  ledger  i.rr:t.K),m^ 
being  a  savings-fund  account  in  which  the  balance  of  $o0,0<)5.8i  xxas 
wi  ed  out  or  deduced  by  rubbing  out  the  figure  5  That  was  returnej 
Iv  addinff  the  5.  That  covers  most  of  the  matters  of  July  3,  with 
the  eSion  c)f  the  destruction  of  the  pages.  There  are  28  pages 
entirely  gone,  besides  a  great  number  which  were  torn  out  and  pasted 
back    "  There  are  28  pages  gone  entirely. 

Q    How  inany  pages  torn  out  were  replaced,  as  near  as  you  can 
teiif — A.  I  have  not  that  data. 

xU  this  point  the  committee  t<Jok  a  recess  until  2:30. 

AFTEK    I'HK   REC^ESS. 

The  committee  reconvened  at  2:30  p.  m. 

President:  Messrs  Bacon  (Cliairman)  and  Dickerson. 

By  the  Chairman: 
O    Was  there  no  examiner's  report  later  than  July  3,  1 800  ?— A .  There 
was  an  examiner's  report  in  January.     October  2  189(K  the  Hid.vidua 
ledgers  showed  a  credit   due-the   gross    credit   due  depositorsY^^ 
^,800,443.82,  with   overdrafts  of  ^116,037.54,   and  a   ']ef  ci^lit  due 
depositors  of  $1,774,400.28.     The  general  ledger  showed  .^l.-3<.,0.4..>0 

due  dei)Ositors.  ,   .      .       *     i-^-  f  ^-i"<rii*^vi 

Q.  A  difference  of  how  much  ?— A.  A  ditleivnce  ot  >'.)oM.>1.38 
Xmv  the  report  to  the  Comptroller  <-alled  for  individual  deposits  of 
il '-2,00r».r)4,  with  overdrafts  of  *  1,031.24,  making  a  net  due  dept»s- 
iWrs  of  .f  1,220,404.30.  Now,  there  was  a  ditlerenee  between  the  indi- 
vidual ledg<'r  and  the  indivichial  account  on  the  general  ledger  ot 
J^.538,000;  ^rnd  there  was  a  diiference  between  the  mm  ividual  ledgers 
and  the  report  to  the  ( Vmiptrolb'i'  of  nearly  S.mO.ooo. 

Q.  The  amount  due  depositors  on  the  individual  ledgers  l»eing  that 
mm.h  greater  than  repented  ?- A.  Five  hundred  and  ^y^^;^^]^;]^^ 
thdlars.  Now,  with  their  notes  discounted,  they  reported  to  t  he  <  omp- 
trolie,  notes  cm  hand  .^,157,000.  1  can  only  t^n..  ^'^-^^ding  to  the 
books,  $84r>,0(K)  on  hand,  a  diiference  there  of  an  *>\;;^-^*^  ^'"^f;/^,, 
naner  of  $312,0(M).  That  would  make  altogether  a  timereiice  m  the 
Es  of  ti^e  bank;  between  those  two,  of  nearly  $0OS  )00  in  the  condi- 

tioii  oftlu'  bank. 

O.  That  is,  the A.  The  ovcrstatcineiit  ol  asst-ts. 

Q.  And  th..  undorstaten.ent  of  lial.ilities  t..gvther.  ""'ki"S  a  <l.ff^v- 
ence  of  nearly  $900,000.   J^ow,  with  regard  to  this  report  ot  the  exam- 


n 


I 


Ifl 


M 


i^l 


464 


INVESTIGATION   OF   NATIONAL   BANKS. 


iner,  made  in  January,  1891,  have  you  ever  made  any  investigation  to 
find  out  what  the  condition  of  the  Bank  was  on  the  date  of  tliat 
report?     A.  [Witness  examines  papers].     I  only  made  a  partial  exam 
ination  of  that,  because  I  made  a  little  more  lull  examination  of  the 
one  of  February  28. 

Q.  Have  you  got  th<*  one  of  February  28*— A.  Yes,  sir.  One  thing 
T  did  find  on  this  was  that  they  had  issued  <-eititicates  of  deposit  to  the 
clearing  house  for  which  they  had  received  loan  certificates,  and  that 
they  then  owed  the  clearing  house  about  J!<o50,000  on  these  loan  certifi- 
cates; but  I  could  not  find  that  those  were  reported  on  this  report. 

Q,  They  are  shown  in  the  books  of  the  bankf — A.  They  are  shown 
in  the  books  of  the  bank. 

Q,  Was  the  clearing  house,  holding  any  (collateral  ?— A.  The  clearing 
house  held  collateral  in  the  shape  of  bills  discounted. 

Q.  Did  that  fart  apjiear  on  the  books?— A.  I  think  that  di<l.  I  have 
not  identified  the  paper  of  deposit  on  the  books.  The  stubs  of  the  cer- 
tificates are  there  perfectly  clear,  showing  all  these  certificates  of  de- 
posit issued  to  the  clearing  house.  A  record  has  been  kept  of  the  pay- 
ments on  that,  from  which  record  1  very  quickly  made  up  my  statement. 

Q.  Then  then^  was  no  difficulty  ?— A.  I  had  no  difficulty  in  that  way. 

Q.  Mr.  Drew  himself  makes  no  claim  but  what  it  was  discovere<l  t — 
A.  Oh,  yes;  that  was  not  hid  at  all.  That  matter  was  perfectly  clear 
on  the  books.  I  arrived  at  that  in  fifteen  minutes.  I  had  no  difficulty 
in  arriving  at  that  at  all. 

Q.  Now  go  to  the  February  report  and  tell  us  what  difi'erences  there 
were  at  that  time f— A.  The  February  report  shows  the  clearing-house 
loan  of  $371,(M)0  at  that  time.  Mr.  Bacon,  I  am  wrong  in  my  last  state- 
ment. That  is  I  have  a  little  analysis  of  th(»  January  24tii  leport  in- 
st<>adof  the  February  28th report.  T  find  I  got  my  paper  into  the  wrong 
package.  It  is  of  the  date  of  January  24  instead  of  the  <hite  of  Febiinirv 
28.  '^ 

Q.  Now,  Ml  us  what  the  difi'erences  are  between  the  actual  state  of 

the    books,  as  you   found  them,  and  the A.  | Examining  paper.) 

Well,  I  find  here  a  diffi'rence  of  *;i4o,632.58 on  the  individual  h'dger  at 
that  date.     Why  it  was  not  more  Talscj  found. 

Q.  OruMuoment;  you  say  you  find  a  difference.  Do  you  mean  that 
the  amount  due  depositors  by  the  individual  ledger  was  nnieli  greater 
than  as  reported  by  the  examiner  ?— A.  As  rejjorted  by  the  examiner. 

Q.  Now  proceed.  What  is  the  reason  it  was  not  larger? — A.  They 
had  arbitrarily  reduced,  or,  rather,  increased,  1  shouhl  sav,  their  indi- 
vidual deposit  account  on  the  16th  of  Janiuiry,  1890,  I  think. 

Q.  The  amount  due  depositors?— A.  The  amrmnt  due  depositors.  Jt 
was  done  at  the  time  they  were  considering  the  matter  of  disi>osing  of 
the  bank  building,  and  they  put  a  valuation  on  the  bank  building  of 
$225,000.  They  credited  that  valuation.  They  had  not  received  the, 
miMiey  for  it, but  they  credited  that  valuation  on  their  geneial  ledger 
sheet  arbitrarily,  as  if  it  were  a  deposit,  $225,000,  and  charged  it  to 
bills  discounted. 

Q.  I  see.— A.  That  is,  virtually  put  back  into  the  individual  deposit 
account,  as  it  ^ere,  $225,000  which  they  had  erroueouslv  taken  out 
some  time  before,  and  tried  to  straighten  up  the  matter  with  the  bills 
discminted.  Now,  the  sale  or  transfer  of  tli<'  property  was  made, 
1  think,  the  9th  of  January,  when  they  niade  the  arrangement  with 
the  estatii  of  Mr.  John  C.  Lucas  Tlien  the  settlenn'nt  was  made 
with  the  bank  in  which  the  estate  turned  over — the  estate  of  John  C. 
Lucas  turned  over  to  the  bank  that  building  at  a  valuation  of  $225,000, 


INVESTIGATION   OF    NATIONAL   BANKS. 


465 


and  the  Sea  Girt  Land  Improvement  and  Spring  Lake  Beach  Im]»rove- 
ment  Companies'  stock,— the  total,  the  Bank  building  and  that  together 
considered  at  a  valuation  of  $561,000,  and  considered  as  Mr.  Lucas's 
indebtedness  to  the  bank.  They  later  sold  that  bank  building,  and 
received  $175,000  for  it  from  Mr.  AVeightman.  Well,  that  is  a  loss  on 
the  valuation  they  put  upon  it  here  in  the  books. 

By  Mr.  Biokebson  : 

Q.  Fifty  thousaJid  dollars? — A.  Yes*  the  Sea  (Jirt  an<l  Spring  Lake 
Beach  Company  was  put  down  in  the  stat^mc^ut  as  real  estate.  It 
shows  in  Mr.  Drew's  statement  here  of  February  28  $800,000. 

Q.  Is  the  banking  house  in  that  statement  of  Mr.  Drew  of  February 
28  f— A.  Yes. 

Q.  That  has  disappeared? — A.  That  has  disappeared  entirely.  The 
banking  house  is  shown  here  as  $225,0(^0. 

Q.  You  mean  on  the  January  statement? — A.  On  the  January  state- 
ment, I  should  say. 

Q.  The  examiner's  report? — A.  Examiner's  report  of  January  24, 
$225,000.  This  is  the  ])eriod  where  they  have  it  in  their  individual  de- 
l)osits  and  charged  to  notes  and  bills  discounted.  Still,  I  find  it  on 
this  rei)ort  as  showimg  banking  house  $225,000.  Whether  it  is  also  in- 
cluded in  this  $895,000  that  he  has  here  of  notes  and  bills  discounted 
I  have  been  unable  to  thoraughly  ascertain  yet;  but  tliat  is  a  lump, 

not  itemized. 

Q.  As  to  the  result  of  the  January  statement:  Mr.  Drew  showed  the 
bank  with  capital  impaired  to  what  extent?  Do  you  recollect?  Y"ou 
have  got  it  there  before  you. — A.  January  24  ? 

Q.  Yes,  sir.  Does  it  not  show  an  impairment?— A.  It  simply  shows 
overdrafts  here.     [P^xamining  papers.] 

Q.  The  February  statement  shows  an  impairment? — A.  Tlu^  Febru- 
ary statement  shows — he  gives  a  complete  history  of  the  February 
statement.     I  think  he  states  in  here. 

Q.  (Beading.)  ^^Twenty-sixth  day  of  February,  1891"?— A.  Twenty- 
eighth,  he  says  here. 

Q.  That  is  the  report  of  condition A.  He  says  here  (reading): 

'-General  condition  of  the  bank  highly  unsatistactory.  False  credit 
with  Chase  National  P>ank,  $50,000;  tklse  credit.  Traders' National  l>ank 
$28,000. 

The  Witness.  Loss  sustahuMl  on  sale  of  bank  building,  $50,000;  on 
<luebill  account,  a  mystery  or  a  pool  for  losses,  $114,954.19;  short  on 
hills  discounted,  not  yet  diseovered,  $76,515.01.  Memorandum:  This 
item  is  within  probability  of  discovery,  although  much  searc^h  has  not 
revealed  it.  It  is  doubtful  whether  this  should  be  claimed  as  certainly 
a  loss.  Necessarv  to  adjust  the  accounts,  $60,534.78- making  a  total 
here  of  items  of  loss,  $386,691.98. 

Q.  He  makes  a  statement  in  that  report  further  on,  under  the  head 
of  "Uabilities,  (;ai)ital  stock"  (reading):  The  caiutal  stock  is  seriously 
impaired A.  No;  this  is  not  on  this  copy  they  sent  me. 

Q.  Now,  I  want  to  ask  you  whether  you  have  made  up  such  a  state- 
ment as  will  enable  you  to  tell  us  what  the  condition  of  the  l)ank  was 
(HI  the  24th  of  January,  1891,  as  appeared  from  the  books? — A.  I  ha\e 
not  gone  into  the  details  of  that  statement  as  nnich  as  1  have  in  the 
others,  because  it  was  so  near  the  closing  of  the  bank,  and  1  had  the 
one  of  October  2,  which  you  have,  and  the  one  of  March  20.  We  know 
that  the  bank  was  insolvent. 

Q.  Yes;  and  the  extent  you  have  not A.  This  intermediate  one— 

3792 30 


f 


':1 


I 


I 


<■, 


' 


466 


INVESTIGATION    OF    NATIONAL    BANKS. 


INVESTIGATION   OF   NATIONAL    BANKS. 


467 


1  have  not  traced  it  tliroiigh.  In  this  instance  I  simply  gave  a  cursory 
jrhmce  at  this  one  and  that  ot'Febrnary  US,  and  tinished  up  with  3larch 

Q  March  20,  1891,  was  the  one  the  exannner  tnrne<l  over  to  tin' iv- 
ceiver,  wasn't  it?— A.  That  was  the  day  tliey  rlosed  the  bank.     Ihc 

examiner  took  i)ossessiou.  .    ,      ,      ,       i 

Q    Have  you  got  a  statement  ot  the  nuidition  ol    the  hank  when  it 

closed  its  doors f— A.  Yes;  I  have  a  statement  made  np  by  the  bank 
examiner  for  that  date.  [Examining  i)apers.|  Here  is  a  copy  as  I  g<»t 
it  IVom  the  receiver  as  made  out  by  the  bank  examiner  tor  10  o  clock 
in  the  morning.  March  2(»,  l<SiH.  He  took  possession  aiwl  shut 
the  doors.  It  shows  total  assets  of  }fl,771,5ll.41,  total  liabibtu's, 
$2,726,G70.i:i— a  detii'ieney  of  «!Km,LV.).()L». 

Q.  Does  that  incliuh'  the  stock  as  a  liability  ?— A.  >o,  sir;  this  does 
not  inchide  the  capital  stock  at  all.  It  sim|)ly  takes  the  habdities  and 
assets  that  you  <an  put  your  hands  on. 

By  Mr.  Dhkeuson: 
il  That  inchides  all  the  assets— cajatal  stock  and  all  *— A.  (capital 

stock  is  not  necessary.  ,     ,       ,       ,       *    /.i    -^  ^  i 

Q.  I  mean  the <ash— everything  they  had  on  hand.— A.  Dh,  it  takes 
all  the  cash.  He  puts  the  Sea  (iirt  and  Spring  Lake  Beach  stock  at 
$500,000. 

By  the  Chairman: 

Q.  What  you  included  in  vour  statement  was  simply  the  liabilities 
whieh  appeared  <m  theboi»ks  ol'the  bank  ?— A.  Just  as  they  appeared 
on  the  books  of  the  bank,  nothing  more;  and  the  assets  as  they  ap- 
peared on  the  bare  books.  , »      ,     , 

Q.  Since  that  time  have  <)ther  liabiliti<*s  been  <liscovered  .'—A.  1  was 
going  to  say  this  ineluded  the  $l>2r>,000  duebills  due  elohn  Bardsley. 

The  Chairman.  [Examining  printed  volume  of  testimony.  |  I  do  not 
tind  any  statement  of  liabilities  scheduled  here  by  \aidley  as  yet. 
Where  is  the  $1KMMMK)  ? 

The  Witness.  1  copied  this  tVom  the  list  1  found  there— the  written 
list  of  the  bank— where  it  was  put  in,  ''  Duebills  in  dispute.  John  Ilanls 
ley,  $925,000.''     I  made  my  copy  trom  a  written  list  which  was  in  the 

receiver's  hands.  .    i  .^     ^i 

Q.  I  want  to  get  that.     That  is  not  the  way  it  is  rei^orted  to  the 

Comptroller.     This  lexhibiting  volnnie|  is  a  copy  ot  his  report  to  the, 

Comptroller.— A.  This     is    the     way     I     copied     jexhibitiug    copyj; 

$2,720,070.43  is  the  total  footing  1  have  in  my  book. 

Mr.  Payson.  What  is  the  amount  of  the  J<>hn  Uardsley 

The  Witness.  $92r),0(M>  even  m(»ney. 

By  the  Chairman  : 

Q  Now,  without  the  Bardsley  matter  the  bank  still  would  have  been 
iusolvent,  would  it  not  i  its  capital  would  have  been  entirely  absorbed, 
according  to  this?— A.  That  wcmhl  have  shown  $1,801,000  liabilities 
against  $1,771,000  assets,  showing  ab^mt  >«30,(M)0  deticit:  an<l  that  is 
taking  the  estimate  ot  the  Spring  Lake  property  at  J!^r.OO,0(M). 

ByMr.DicKKKSON.  That  is  the  way  we  have  it  here,  (^an  you  explain 
why  over  here  |indicatingl  Yardley,  the  receiver,  puts  Sea  (iirt,  2,20.) 
shares,  at  $100,000?     What  proporticm  of  the  shares  was  that. 

The  Witness.  Sea  (Iirt  and  Si)ring  Lake  Beach  sto(;k  was  originally 
7,040  shares,  which  had  been  transferred  by  the  estate  of  J.  <  \  Lucas  to 
the  bank,  in  part  settlement  of  the  indebt<'dness  of  John  (\  Lucas,  but 


later  the  bank  gave  to  John  Bardsley  4,:i81  shares.  That  left  3,250 
shares  turned  over  to  the  receiver  and  bank  examiner.  That  is  what  1 
wrote  nf>tes  IVom  the  receiver  as  he  gave  it  to  me.  ^ 

(^>.  Without  the  Bardsley  business  at  all,  the  bank  would  have  b<'en 
$.{0,000  short  of  paying  its  liabilities  to  outsiders,  to  say  nothing  <»f  its 

stock?— A.  Y<'S,  sir.  ,      .     ^r 

Q.  The  stock  would  have  been  wiped  out : — A.  Yes,  sir. 
Q.  And  it  would  havi'  been  $;iO,000  in  debt?— A.  in  these  assets  are 
$153,t)12.01  of  worthless  assets,  which  the  receiver  reported  to  the  De 
partment  as  worthless,  which  still  remain  upon  his  schedule  as  worth 

Q.  What  character  were  those?— A.  Ohl  overdrafts,  old  notes,  in- 
debtedness to  the  bank  which  was  uncollectible  entirely. 

Q.  How^  hmg  had  the  bank  l)eeii  holding  them?— A.  Some  ot  them  a 

good  many  years.  ..  i_     •  i 

Q.  Things  whi<'h  ought  to,  in  the  regular  course  of  business,  have 
beeii  <-harged  oil  and  not  carried  in  the  avssets  of  the  bank  ?— A.  Yes, 
sir  Then  there  were  doubtful  assets  of  $006,002.48,  also  in  paper  and 
overdrafts,  which  the  receiver  has  not  collected.  These  figures  (the 
$990,092  doubtful  assets)  1  took  from  liis  statement  here  of  recent  date 
as  what  is  uncollectible  at  a  recent  date,  taking  out  what  little  he  may 

have  collected.  ,     ,  .„        nix-        m     ^ 

Q.  Now,  Mr.  Barrett,  there  were  $025,000  duebills  called  tor.     Those 

duebills  were  of  the  cliaracter  you  have  described,  payable  through 

the  clearing-house  one  day  after  their  date.— A.  The  date  following 

issue 

Q.  Have  you  any  list  of  those  duebills  with  the  dates  and  amounts 

on  them?— A.  I  have;  yes,  sir.  .  ,     ..  ^        ^     * 

O  Won't  vou  read  it  so  that  the  stenographer  can  take  it  down  ?— A. 
The  first  one  issued  is  dated  February  8, 1890,  for  $25,000.  The  bank  re- 
ceived for  it  a  check  of  John  Bardsley,  No.  31,  on  the  Seventh  National 
Bank  of  Philadelphia,  and  that  check  was  paid  by  the  Seventh  Na- 
tional Bank  through  the  clearing-house.  On  March  1, 1890,  they  issued 
Mr  Bardsley  two  duebills,  one  for  $250,000  and  one  for  $75,000,  mak- 
ing altogether  $32o,(K)0.  Mr.  Bardsley  gave  them  a  school  warrant  ot 
the  State  treasurv  for  $300,000.  The  reason  why  they  gave  him  the  due- 
bill  for  $325,000  was  this,  so  Mr.  Bardsley  explained  it,  that  Mr.  Marsh 
came  to  him  and  begged  him  for  money;  said  they  were  very  short  m 
their  settlements  with  the  bduks  and  that  they  must  have  some  money, 
and  made  him  an  ofter  voluntarily  that  if  he  would  deposit  with  them 
that  year  $500,000,  guarantee  to  do  that,  that  he  would  give  him  a  bonus 

of      ^  "  ''        "  "  "  ^-"'  '"  -^^  "^'-^  '^''"'^* 

se 

lU     juni;c«iiii-i»_'i»«-'J.  -••■'-'.7     ^-'•^-^—      —  -^ 1/  e--  ''rv'^t  1    'M 

each,  which  are  indorsed  on  the  back  of  the  $250,000  duebill. 

Q.  $225,000?— A.  $250,000.  The  $250,000  and  the  $75,000  together 
make  $325,000,  for  which  he  gave  them  only  ^^^^^^N**^^^^-  .^^^^^^^^^^'^l^-;! 
these  payments  were  made  to  him  they  issued  a  new  duebdl  tor  f  L,.»  K» 
each  time.  The  duebills  which  they  issued  to  him  were  torn  trom  the 
back  of  the  book— the  back  of  the  duebill  book.  A  stub  was  left; 
no  memorandum  attached  to  it  at  all.  If  it  had  not  been  tor  the 
fact  that  1  obtained  transcripts  of  Mr.  Bardsley's  private  mejno- 
randum  we  never  would  have  been  able  to  trace  them  througa  the  Key- 
stone Bank  at  all.  There  was  no  memorandum  or  any  charge  made 
'i)f  that   $2j500   on   any*  books   of  the  bank.     Tlie>;  gave  him  $2,oOO 


^,  ■ 


468 


INVESTIGATION   OF    NATIONAL   BANKS. 


a  ujontli  for  ei^ht  roiisecutive  moutlis.  They  also  paid  him  .!!il,000a 
moiitli  for  t]w  use  of  his  accoiiiit.  Tliey  also  paid  hiin  interest  on 
eertain  loans,  shoit  time  loans. 

These  were  |>aid  sometimeji  in  eash,  bnt  ahnost  always  in  due- 
bills;  and  there  was  not  the  Hrst  eharge  on  the  books  of  that  bank  of 
a  single  paper.  They  would  simply  tear  a  <luebill  out  of  the  back  of 
the  book  and  he  would  «»o  to  some  other  bank  and  get  it  eashed. 
When  it  came  in  it  wcMild  take  the  regular  course  an<l  be  charged  to 
the  duebill  accimiit.  Tliere  never  had  b<'en  any  corresponding  credit 
in  the  duebill  account. 

Mr.  Marsh  took  this  warrant,  went  up  to  Harrisburg  and  got  from 
the  State  treasurer  a  draft  upon  the  Farmers  and  Mechanics'  National 
Bank  for  J8«3(K),0(H),  came  back,  put  the  draft  through  the  bank  in  the  reg- 
ular way;  it  was  paid  by  the  Farmers  and  Mechanics'  National  and  was 
credited  to  the  duebill  ac<'ouut  and  was  put  on  the  books.  On  the  22d 
of  April,  18{)(),  they  issued  to  him  a  duebill  for  $75,0(M),  for  which  they 
received  Mr.  IJardsley's  check.  No.  lt)l,on  the  Manufacturers'  National 
Bank  of  I*hiladel])hia,  that  went  through  the  regular  ccmrse  thnmgh  the 
exchange.  I  am  wrong.  I  get  those  two  banks  confused.  The  Farmers 
and  Mechanics',  not  tlie  Philadelphia  National;  that  name  should  go  in 
instead  of  Philadelphia  National.  On  April  U3,  ISIMJ,  they  issued  to 
Mr.  Bardsley  a  duebill  feu-  $75,(MK),  for  which  they  received  his  check. 
No.  102,  on  the  Manufacturers'  National.  That  check  was  paid  in  the 
regular  course.  A])ril  24,  ISDO,  they  issued  a  duel)ill  to  him  for  J!<25,00(», 
and  received  his  check,  No.  104,  on  the  Manufacturers'  National  of 
Philadelphia.  That  check  was  paid  through  the  clearing-house.  But 
that  duebill  when  it  was  issued,  instead  of  being  charged,  or  cred- 
ited, I  should  say,  to  the  duebill  account,  as  was  customary,  went 
as  credit  to  bills  discounted.  The  duebill  account  was  beginning  to 
show  larger  than  they  wanted  to  show  it.  It  showed  too  much  of  a 
liability;  and  s(»  they  stuck  this  $2:>,00()  into  the  bills  discounted. 

On  May  (>,  1800,  they  issued  a  ??50,(MK)  duebill  and  received  from  Mr. 
Bardsley  a  check,  No.  lir>,  on  the  Manufacturers'  National  Bank  ot 
Philadelphia.  That  one  was  ])aid  through  the  clearing-hcmse  in  the 
usual  way.  That  duebill  is  credited  to  bills  disccmnted  also,  instead  of 
to  the  duebill  account.  On  July  24,  ISOO,  they  issued  to  him  a  $50,000 
duebill,  and  received  i'roui  Mr.  Bardsley  a  check,  No.  42,  on  the  Seventh 
National  Bank.  Thar  clu'ck  was  paid  through  the  clearing-house.  On 
July  28,  18<)0,  tlu-y  issued  to  him  a  duebill  for  ><50,000  and  received  his 
check,  No.  4;J,  on  the  S<nenth  Natiomd  Bank  of  i*hila<leli)hia.  That 
check  was  i>aid  through  the  clearing  house.  Now,  on  Hei)tember  5, 
1890,  they  issued  to  him  tour  duebills,  one  of  {!f70,000,  and  three  of 
$50,000,  making $22(),0(H).  They  originally  issued  to  him,  1  think  it  was 
the  day  luevious  or  the  day  after  that,  a  duebill  for  two  hundred  and 
twimty  tlnmsand  four  hundred  and  seventy  six  dollars  and  some  cents. 
There  was  found  in  Mi*,  liardsley's  private\)f!ice,  after  he  was  arrested, 
uiuler  his  pad,  three  or  foui-  blank  duebills,  and  it  raised,  naturally, 
considerable  question  what  he  was  doing  with  the  blank  duebills.  Mr. 
Bardsley  explained  it  in  this  way: 

He  said  that  Mr.  Marsh  came  to  his  otiice  on  the  5th  of  September  and 
brought  over  eight  Wank  dueliills  with  him  and  begged  Mr.  Bards- 
ley to  cut  up  the  large  duebill  into  eight  small  duebills.  Mr.  Bardsley 
refused,  but  finally  they  agreed,  or  Bardsley  agreed,  to  take  four  due- 
bills  at  least  for  this  large  one,  and  that  Marsh  must  have  accidentally 
left  the  blank  duebills  there.  That  was  his  explanation;  because,  he 
said,  he,  Marsh,  had   eight  duebills    with   him;    that  he  filled  up 


INVESTIOA TIOX    OF    NATIONAL    BANICS. 


460 


four  in  his  office,  which  are  representc^d  here,  and  which  Mr.  Bardsley 
now^  holds.  FTe  took  ]>ack  with  him  the  .<!r^220,000  one  (the  large  one),  and 
they  also  paid  Bardsley  back  the  difference  in  a  small  duebill  for  four 
hundred  and  seventy-six  dollars  and  some  cents;  that  duebill  is  in  the 
bank;  the  large  one  for  $220,000  has  been  destroyed.  The  duebill  is 
not  there. 

They  issued  the  duebill  to  him  for  a  draft  on  the  Farmers  and  Me- 
chanics' National  Ijank,  which  was  the  proceeds  of  a  State  loan  be- 
longing to  the  city  sinking  fund.  Mr.  Bardsley  surrendered  that  and 
took  four  in  place  of  it.  It  has  since  been  destroyed,  evidently,  because 
we  do  not  find  it  among  the  pa])ers  of  the  ba  nk — the  large  one.  So  that 
accounts  for  the  $22(>,000. 

They  had  this  draft  on  the  Farmers  and  Mechanics'  Bank,  and  they 
needed  money  right  away.  They  were  short.  They  went  to  the  Third 
National  Bank  and  obtained  from  the  Third  National  a  clearing-house 
certificate  for  $10(),(M)0  and  the  Third  National  Bank  duebill  for 
$120,000.  With  that  clearing-house  gold  ceitificate  it  helped  them  t^ 
meet  their  indebtedness  at  the  clearing  house.  On  October  0  they  is- 
sued to  Mr.  Bardslev  a  duebill  for  .*50,(MM),  and  received  his  check,  No. 
203,  on  the  Keystone  National  Bank.     That  makes  the  whole  $945,000. 

By  the  Chairman: 

Q.  Did  Mr.  Bardsley  obtain  $50,000  of  the  Keystone  National  Bank 
at  that  time? — A.  He  did  at  that  time. 

Q.  So  they  merely  transferred  it  from  his  general  account  to  the  due- 
billt — A.  That  is  all;  yes,  sir. 

Q.  Now,  with  regard  to  these  duebills;  there  was  no  record  entered 
upon  the  books  of  the  bank  anywhere  to  show  anything  about  the  re- 
ceipt of  this  money  and  the  giving  of  these  duebills,  was  there! — A. 
In  most  of  the  instances  these  duebills  were  duebills  torn  from  the 
back  of  the  book. 

Q.  Yes. — A.  In  many  of  the  instances  they  were  credited  on  the  gen- 
eral cash,  under  the  head  of  "  duebills,"  appearing  in  the  due- 
bill  account;  in  some  instances  in  the  duebill  l)ook,  while  these  were 
torn  out  from  the  back  of  the  book  (duebill),  yet  in  the  regular  running 
stub  the  amount  would  be  entered,  $25,(K)0,  iVu-  instance,  without  any 
note  as  to  what  $25,000  it  was  or  w  hat  it  was  for  at  the  end  of  the  day's 
\>  ork.  But  in  some  instances  they  were  not  credited  to  the  duebill  ac- 
count at  all.  As  I  say,  in  the  larger  number  of  instances  they  were 
credited  to  the  duebill  account.  Now,  their  duebill  account  conse- 
quently showed,  or  should  have  shown,  an  immense  liability  on  accimnt 
of  duebills.  To  get  rid  of  that  liability  they  charged  off;  arbitrarily, 
at  ditferent  times  different  amounts.  In  two  instances  they  charged  off' 
*200,000  each  time  to  duebill  account,  arbitrarily  crediting  the  am<mnt 
to  bills  discounted  or  to  individual  deposits  or  some  other  account. 
There  was  no  cash  transaction  to  balance  it,  so  they  had  to  stick  it  in 
one  way  or  the  other,  and  it  was  almost  always  stuck  into  bills  dis- 
counted; and  another  instance,  $136,000,  which  I  found  represented, 
carrying  checks  of  John  C^  Lucas;  one  check  of  $104,000  that  had  been 
carried  in  the  cash  as  an  actual  cash  item  for  a  long  time,  and  they 
took  it  out  of  the  cash,  and  Mr.  Marsh  made  a  memorandum  check, 
''  charge  duebill  account  $130,000."  That  is  charged  to  duebill  account. 
That  helped  to  reduce  this  $000,000,  so  that  it  was  to  cut  that  down  and 
stop  the  appearance  of  liability  on  duebills,  so  that  when  the  bank 
closed  their  duebill  account  showed  an  asset  instead  of  a  liability,  or 
just  prior  to  the  closing  of  the  bank,  I  should  say. 


:l 


^i   .    f 


470 


TXVESTIGATION    OF    XATlONATv    HANKS. 


I' 


Hf 


L 


1' 


Q.  Mr.  Barrett,  yon  say  there  was  a  $101,00(1  rbeck  of  Lucas  carntul 
aseaslilf — A.  Yes,  sir;  more  than  tliat. 

Q.  1^136,000?— A.  Yes;  hnt  they  were  upas  \n<xh  as  $15(MKM>  or 
$160,000  at  times,  but  at  this  time  they  ]iai)i)ene(l  to  ])e 

Q.  Dovourecolleethow  thatwas?— A.  That  $104,0(K)? 

Q.  Yes.— A.  That  5^101,000  was  carried  in  cash  througliout  the  whole 
year  from  his  death.  He  died  in  18S8.  The  eheck  he  issued  in  1SS8 
before  he  died  was  carried  in  cash  all  the  way  through  until  the  settle- 
ment. 

Q.  Do  you  mean  to  say  that  in  order  t(»  reach  the  cash  balance  shown 
by  the  examiner's  reports  anil  the  reports  of  c(mdition  that  >j<  104,000 
was  steadily  counted  as  though  it  was  money?— A.  ft  was  steadil> 
counted  right  there.     The  teller's  own  cashbook  shows  it  right  there. 

Q.  Suppose  the  examiners  had  started  to  count  the  cash?— A.  1  have 
no  doubt  when  the  bank  examiner  showed  his  iVice  in  the  inside  door 
they  slipped  a  boy  out  the  back  door  and  got  currency  to  ])ut  in  place 
of  it.  It  ai)pears  on  the  day  i)revious  and  the  day  following.  It  van- 
ishes that  day. 

Q.  It  appears  on  a  book  the  day  jnevionsf- A.  On  what  is  <'alled  the 

teller's  cash  settlement. 

Q.  That  was  a  book  that  Mr.  Drew  had  access  to;  therefore,  any  ex- 
amination of  that,  reaching  back  a  day  or  two,  either  way,  from  any  of 
his  prior  examinations,  would  have  developed  that  $104,000f — A.  Not 

only  that i 

Q.  Would  it  have  developed?— A.  ltw(mld,  yes,8ir.  And  also  in  this. 
The  first  thing  that  led  me  to  notice  that  was  this:  The  first  item  1 
came  across  was  an  item  of  |18:{,000  which  I  noticed  appeared  on  this 
teller's  cash  settlement  under  a  printed  heading, '^clearing  house  gold 
certificates;"  and  under  that  heading  it  appeared,  without  change  in 
amount,  for  nearly  a  year;  I  don't  know-  but  a  year  and  a  half. 
Now,  I  knew  that  a  bank  as  short  as  that  bank  was  in  18S0 — as 
short  as  it  was  then  known  to  be  could  not  carry  $18:5,000  in  gold 
clearing-house  certificates.  Furthermore,  1  knew  that  it  was  an  im- 
possibility for  gold  clearing-house  certificates  to  be  of  that  amount, 
for  they  were  only  issued  in  denominations  of  15,000;  no  other  denom- 
inaticnr;  and  you  r-ould  not  make  *183,000  out  of  denominations  of 
$5,000  to  save  your  lite. 

1  sent  for  tbe  teller,  the  tbrmei-  teller  of  the  bank,  and  I  showed  him 
this  amount.  I  said  to  him,  ^' Can  you  explain  thatf  What  is  it?" 
"Well,"  he  says,  *'that  represents  some  checks  of  rfohn  0.  Lucas. 
Those  checks  were  turned  over  to  me  when  Ifirst  took  the  teller's  desk 
fromMarsh,  away  ba<-k  years  ago."  Says  I,  "  Did  Mr.  Marsh  turn  those 
over  to  you  f  He  said,*"  Yes ;  1  protested,  too.  I  did  not  want  to  carry 
those  as  cash.  Thev  had  them  in  the  cash  and  turned  them  over  to  me 
at  that  time."  Then  1  said,  ^'  What  were  those  checks?"  and  he  says, 
"  One  of  them  wa^  abcmt  8104,000  and  another  one  about  $18,000;"  I 
don't  remember  the  full  amount.  Says  I,  "What  became  of  them?" 
"Well,"  he  says,  "J  carried  them  along."  Says  1,  '^  \Vhat  became  of 
them  eventually?"  He  says,  ^'Mr.  \'an  Ueil  came  to  me  when  he  was 
vice-president  and  got  them  from  me  and  1  understood  he  collected 
$55,(K)0  on  them."  Well,  I  think  he  was  a  little  mixed  himself,  because 
in  tracing  the  matter  for  myself  1  found,  according  to  Marsh's  own  teller's 
work,  when  he  was  teller,  there  api>eared  to  be  no  such  figures  om  Marsh's 
book  when  he  was  teller  at  all;  that  this  $183,000  had  been  a  gradual 
growth  for  several  years  back;  had  begun  with  small  items,  matters  of 
four  or  five  tlumsand  dollars,  and  gradually  increased  to  $7,000,  $10,(KK), 


INVESTIGATION   OF    NATIONAL    BANKS. 


471 


'4 


$15,000,  $20,000,  $30,000,  $40,000,  and  so  on,  and  going  u])  in  that  way. 
1  traced  it  through  the  teller's  booi^.  You  can  st>e  the  growth  of  it. 
It  •'^ot  up  to  this  $183,000— up  as  high  as  $105,000  at  one  time— although 
it  ran  at  $18:3,000  without  change  for  a  long  period.  Then  there  was 
an  item  of  forty-six  thousand  and  some  odd  hundred  dollars  and  some 
cents  which  was  put  down  as  national-bank  notes.  Now,  you  can 
not  make  a  national  bank  note  of  20  cents  to  save  your  life.  I  hat 
was  down  as  forty-six  thousand  some  odd  hundred  dollars  and  twenty- 
six  cents.     I  asked  the  teller  what  that  was.     He  could  not  ex])lain  it. 

Q.  Fut  down  where  ?— A.  On  this  teller's  cash-settlement  book  to 
settle  his  daily  cash,  as  though  this  was  national-bank  notes;  and 
he  could  not  exjdain  that;  did  not  attempt  U)  explain  it  to  me  at  all, 
and  that  was  unchanged.  National  bank  notes  are  the  notes  that  a 
bank  uses  most  activelv  of  any  notes  in  the  bank.  It  they  hold  back 
any  they  hold  back  others  and  use  their  naticmal-bank  notes  in  paying 
checks.  This  was  unchanued  for  a  year  and  a  half.  That  la(!t, 
together  with  the  fiict  that  26  c(Mjts  was  at  tln^  end  of  it,  ol  course 
would  show  it  was  not  national-bank  notes. 

Q.  Did  you  ever  find  out  what  that  was?— A.  Never;  couldn't  tell, 
and  never'have  been  able  to  tell  since.     1  am  perfectly  satisfied  it  was 

carried  as  an  item  of  checks.  .      ,  ^^ 

Q.  Mr.  Barrett,  turning  from  that  a  moment,  the  bank  received  the 
money,  as  I  understand  yon,  for  thos6  dnebills?— A.  Yes,  sir. 

()  Now,  can  you  tell  us,  from  your  examinations  of  the  accounts, 
what  use  was  made  of  that  inoney*?— A.  That  money  was  used  by  the 
bank  to  trv  an<l  pav  loans  which  they  were  continually  making, 
which  was  borrowing  from  Peter  to  pay  Paul  right  straight  through. 

Q  Nine  hundred  thousand  dollars  from  Bardsley  ought  to  have 
paid  both  Peter  and  Paul.  AVliat  I  want  to  knoAV  is  whether  it  was 
used  for  that  purpose— whether  the  books  indicated  that  that  was  part 
of  the  liabilities  of  the  bank  ?— A.  That  is  as  near  as  we  can  trace  it. 
The  books  are  incomi)lete  thr(mghout  that  whole  period  of  1800,  inost 
horribly  manipulated,  most  horribly  changed,  all  of  them  clear  through : 
most  incomplete,  irregulai'.  Take,  for  instance,  the  first  one.  There 
was  $325,00(»  of  cash.     That  went  into  the  bank,  and  that  shows 

Q.  Was  there  anv  <(>rrespondiiig  payment  of  obligations  of  the 
bank?— A.  Several  heavv  iniyments  that  very  next  day.  The  duebill 
account,  a  heavv  pavnnMit  of  something  like  nearly  >!5:J0O,OO0,  two 
hundred,  I  think  it  w'as,  and  sev<Mity  or  eighty  thousand  that  very  next 
<lay  through  duebill  account. 

Q.  Through  duebill  account?— A.  Yes,  sir. 

(^  None  of  these  duebills  are  indorsed  by  anybody.— A.  They  are 
simi>ly  made  to  "banks."  No  individual's  name  is  on  any  of  them  at 
all,  s<;  that  none  of  them  are  indorsed. 

By  Mr.  Dickerson. 
Q.  Passed  by  delivery? 

The  AViTNESS.  That  is  all.  They  are  simply  made,  "Pay  to  banks 
so.much;"  that  is  the  way  they  are  made  out. 

By  the  Chairman  : 
Q.  But  tke  duebill  account  of  the  next  day  showed  such  payment?— 
A.  Heavy  payment,  yes,  sir. 

By  Mr.  Dickerson  : 
Q.  Did  not  Lucas  get  a  good  deal  of  it?    Did  he  not  take  it  out  to 


i 


.:«! 


472 


INVERTTGATION    OF    XATIONAL    BANKS. 


INVKSTKJATTON    OK    NATIONAL    UANKS. 


473 


h\ 


invt-si    it  in  real  estate  speculations? — A.   A  large   araonnt  of   this 
biisiiMAss  took  place  aft^r  Ln<*a8\s  death. 

By  the  Chaikman  : 

(}.  With  regard  to  the  other  items,  are  there  any  vases  in  which  you 
can  see  similar  transactions  to  that  upon  the  books  of  the  ba^ik, 
showing  tlmt  about  the  time  they  received  these  large  deposits  from 
John  Bardsley  tljcy  paid  liabilities  to  somebody,  to  other  dei)osit- 
ors?— A.  Yes;  there  are  heavy  charges,  as  I  say,  $.jO(),000  (yes  and 
nearly  $7(K),0()0)  fictitious  charges  made  on  their'books  to  the'  dnebill 
acconnt  to  reduce  its  liability. 

Q.  Yes.— A.  Where  they  really  had  no  money;  and  yet  a  large  pro- 
portion of  this  money  Avas  used  to  pay  loans  among  the  banks  there 
and  to  send  to  New  York  in  Xew  York  exchange,  and  sent  on  to  their 
account  in  Xew  Y^ork  to  keep  u})  their  account. 

Q.  Is  there  any  other?— A.  Then,  of  nmrse,  with  the  fall  came  the 
run. 

Q.  Those  were  used  to  meet  the  demands  of  the  depositors  at  the 
time  of  the  run  in  November,  1891  f— A.  Yes,  sir. 

Q.  Or  181)0?— A.  18!)0,  October  and  November. 

Q.  Have  you  been  able  to  determine  where  first  the  Keystone 
National  Bank  had  among  its  assets  the  stock  of  this  Spring  Lake  and 
Sea  Girt  comi>anies?— A.  1  have  not  been  able  to  determine  any  fui- 
ther  than  what  I  have  seen  here  ujjon  these  reports,  because  there  is 
nothing  on  the  books  of  the  bank,  either  of  the  minutes  of  the  directors 
or  stockholders.  There  is  nothing  to  show  any  dealing  in  any  of  the 
Spring  Lake  or  Sea  Girt  business  whatever. 

Q.  Not  until,  then,  the  Lucas  settlement  ?— A.  Until  the  Lucas  set- 
tlement. 

Q.  Now,  there  is  another  item  that  turns  u])  in  there— Baltimore 
Traction  Company  stock,  i.^an  you  tell  us  the  history  of  that,  how 
that  came  into  the  bank!  A.  That,  if  1  understood,  came  into  the 
bank  through— no,  I  am  not  familiar  with  that. 

Q.  That  has  been  one  of  the  questions,  as  to  whether  the  bank  owned 
that,  has  it  not? — A.  It  has  been  a  question.  Those  bonds  were  hy 
pothecated  by  the  bank  and  are  in  the  hands  of  the  clearinghouse  at 
present  J  and  there  is  a  fight  on  hand  now  as  between  the  estate  of 
John  Bardsley  and  the  bank  and  the  clearing  house  as  to  the  possession 
and  proper  ownership  of  those  bonds. 

Q.  Had  not  you  been  called  upon  to  investigate  thai?— A.  No,  sir; 
I  have  not,  because  the  receiver  has  made  a  piettv  complete  investiga- 
tion. He  has  that  in  his  hands.  That  was  a  matter  tiiat  he  had  al- 
ready decided  upon  in  his  own  mind,  so  Miat  I  had  not  gone  into  the 
investigation  of  that. 

Q.  There  is  nothing  more  you  know  of  in  regard  to  these  duebills 
that  you  desire  to  say  ?— A.  Nothing  at  all. 

Q.  Will  you  tell  us,  Mr.  Barrett,  what  became  (as  far  as  you  can  as- 
certain it)  of  the  money  of  this  bank  f  Who  got  it,  and  where  and  how 
was  it  obtained  f— A.  I  have  a  list  here  that  1  have  made  up  very  care- 
fully Avhich  1  can  show  ycm.  [Examining  pa])er.J  This  list  shows  that 
$895,000  had  been  taken  out  of  that  bank  in  overdrafts,  in  the  first 
place,  by  individuals  who  were  allowed  to  overdraAv;  and  those  over- 
drafts are  unsettled  in  many  instances;  the  accounts  are  partially  or 
entirely  obliterated  from  the  books  by  being  tf)rn  out,  so  that  we  ha^•e 
to  go  to  the  books  of  the  original  entry,  thedailytransacti(ms  of  checks 
and  deposits  and  discounts  and  collections,  to  build  these  accounts  up 


from  the  first  transactions,  making  them  up  as  though  this  man  came 
in  and  we  had  taken  every  day's  work,  and,  as  it  were,  opened  a  ledger 
for  him  to  see  what  his  condition  was. 

Q.  Start  with  that  list.  Give  it  to  us  and  let  us  know  what  it  is?— 
A.  We  find  H.  H.  Yard,  overdraft  $278,000.60. 

Q.  Was  there  anvthing  of  that  on  the  books  at  all?— A.  Nothing. 

Q.  The  account  had  been  torn  (mt,  had  it  not?— A.  The  account  had 
been  torn  out  since  1887. 

By  Mr.  Dickerson  : 

C^.  How  did  you  find  it?— A.  His  account  on  the  ledger  shows  (all 
through  1880  and  1887)  and  at  the  close  of  the  year  1887  he  closes  up 
with  an  overdraft  of  $499.  The  next  year,  opening  the  ledger  for  1888, 
the  beginning  of  1888,  it  does  not  appear  on  the  record  in  any  shape  or 
form,  nor  was  there  anything  to  show  that  this  $499  overdraft  had  ever 
been  settled.    That  closes  December  31,  1887. 

Q.  That  is  lust  $499,  isn't  it?— A.  And  a  half,  yes;  and  they  opened 
a  new  ledger  the  first  day  of  the  year.  In  carefully  examining  the  led- 
ger, where  it  should  have  been  in  alphabetical  order,  I  found  ten  pages 
t()rn  out.  There  were  the  other  accounts  of  the  Y^s  previous  to  it  in 
the  same  order  that  they  were  in  in  the  other  ledger  and  the  Y's  after 
it  in  the  same  order ;  but  that  space  there  excited  my  curiosity,  and  I  set 
my  young  men  at  work  to  start  in  at  this  point  with  this  overdraft  of  $499 
aiid  take  every  day  and  work  right  up  to  the  close  of  the  bank,  and 
this  is  the  result,  $278,000  overdraft. 

Q.  What  is  the  next  ( me,  please!— A.  Certificates  of  deposit  issued 
to  H.  H.  Y^ird,  for  which  the  bank  received  no  money,  $85,900.  These 
certificates  of  dei)osit  show  the  issue  in  the  certificate  of  deposit 
account  on  the  ledger,  as  charged  to  certificate  of  deposit  account 
when  paid;  but  there  is  no  corresponding  credit  to  that  account  for 
these  when  issued.  They  stand  there  open  on  the  face  of  the  certificate 
of  deposit  account  <m  the  debit  side,  but  there  is  no  corresponding 
credit.     Then  a  check 

(^  Mow  much?  What  period  does  that  cover  ther<»?— A.  That 
<*ertilicate  of  deposit? 

(^.  Yes.— A.  18S9,  1890— yes,  back  into  1888,  into  the  fall  of  1888; 
but  UKKSt  of  thfMn,  ISS9,  and*  1890;  $(jr),900  of  them,  1889  and  1890. 

The  check  of  11.  H.  Yard  of  $1(^,000  for  which  he  received— it  was 
a  portion  of  $25,000  that  he  brought  int<>  th<^  bank  in  this  way.  He 
recei\ed  a  dnebill  from  the  bank  for  $25,000.  It  was  in  1890.  He 
brcmght  in  a  dei)Osit  ticket.  lT])i»ii  this  de])Osit  ticket  were  several 
items  of  checks,  most  of  them  checks  on  New  eTersey  and  New  York 
banks.  Among  these  is  noted  on  this  ticket  a  check  on  the  Keystone, 
$10,000. 

Now,  Mr.  Yard,  personally,  at  that  time,  had  no  account  m  the 
Kevstone  National  P>ank  at  all.  He  had  an  account  in  the  Keystone 
National  Bank  as  manager.  This  deposit  ticket  is  credited  to  his  iic- 
count  as  manager,  the  whole  $25,000.  It  is  immediately  charged  back 
on  what  they  called  in  that  bank  the  '^  star  entry  system;"  that  is, 
without  there  being  any  check  given,  and  a  duebill  was  issued  to  him 
in  place  of  the  deposit,  in  plact^  of  being  credited  to  this  account,  the 
duebill  for  the  full  $25,000.  The  $10,000-check  of  his,  however,  was 
not  charged  in  that  account  nor  in  any  account,  but  it  was  hid  by 
being  charged  in  duebill  account,  and  we  found  the  check  among  the 
general  ledger  charge  tickets.  It  is  marked  across  tlu^  face  by  Marsh, 
'*  Charged   to   bills   disc(mnted.     G.  AY.   M."     Yard  took  a   $25,000 


Li 


414 


INVESTIGATION   OF    NATIONAL    BiNKS. 


INVESTIGATION    OF    NATIONAL    HANKS. 


475 


diiebill  and  wvui  to  one  of  tlu'  trust  fonipanies,  1  think  it  was  th^ 
ritizt^us' Trust  (^ompany,  and  (lepositcd  that  there.  Thev  deposited 
it  with  their  <;ash  dei)osits  at  the  Cliestnnt  Street  National  Bank- 
and  from  the  (Miestnut  Street  National  IJank  it  came  back  from  tht' 
clearino  house  to  the  Keystone,  and  the  Keystone  paid  out  the  whole 
$25,(M)0.  So  this  cheek  was  carried  in  amonji  the  memoranda  and  never 
was  char^iHl  to  Mr.  Yard  or  anybody  else.  Then  I  found  $35,84{K;32  of 
various  other  certificates  of  deposit,  in  false  issue,  no  crcMlits  when  issued, 
nothing  to  show  that  the  cash  had  ever  come  into  the  bank:  but  thev  are 
paid  and  charged  to  <*ertihcate  of  deposit  accounts. 

(}.  Do  you  remember  who  those  individuals  were  f— A.   I   have  the 
list  in  my  office. 

Q.  You  haven't  them  here?— A.  No,  sir. 

Q.  Are    they   large   in   amount?— A.  No,  they  are  not  verv  large 
Some  of  them  are  small;  one  of  them  as  high  as'$!»,(UK). 

Q.  1  wish  you  would  send  us  that  list.— A.  Yes,  I  will.  (}  B 
Haines.  This  account  I  had  to  build  up,  *l>4,38r>.29.  (1.  B.  Haines  ^Vc 
Co.,  old  account,  $3(vS3ri.I8  (?);  William  Trenholm,  $(», 784.1)4;  (i.  VV 
Marsh,  |9r>,7(»3.(>2;  Lucas  ^:  (V.,  $r>r>,08<;.r,0;  Samuel  Lucas,  .'!<G,;J2S.89 ! 
William  i.ucas,  $29,r,86.22;  Mrs.  J.  {\  Lucas,  .t;U,r)70.32;  John  Field, 
assignee,  #11,372.19,  ami  then  a  very  long  amount  of  little  overdrafts 
that  had  been  created  years  back,  away  back  into  1880,  and  thev 
allowed  them  to  remain  on  these  ledgers;  never  brought  them  forward 
never  made,  evidently,  any  ettbrt  to  collect  them;  never  had  tigured 
them  in  at  all,  but  they  had  just  l)een  allowed  to  remain.     In  openin- 

!i?Jf  ^  ^^^^**'^'  ^'*^'-^'  "*'^^^^  brought  them  forward,  and  those  amounted  to 
f  10,914.66.  ^ow,  the  estate  of  John  O.  Lucas,  for  which  they  settled,  the 
hgures  ot  which  1  ha\e  here  in  another  matter,  they  tigured  on  as  their 
loss,  $562,(MM),  for  which  they  received  this  Sea  (iirt  and  Spring  Lake 
matter  and  the  bank  building,  .is225,000,  which  thev  sold  for  $17.">,000 
Notes  of  Samuel  Lucas,  Lucas  Bros.,  and  Edward  L-win,  who  was  a 
salesman  for  Lucas  Bros.,  amounting  to  |I40,17(»,  were  given  up  volun- 
tarily by  Mr.  Marsh  to  Samuel  Lmnis  withcmt  anv  credit— just  simplv 
handed  to  him,  and  he  took  them  out  of  the  bank.'  He  testified  to  that 
himself  at  the  hearing  against  Marsh.  In  1887  and  1888  they  went  into 
wool  speculation  and  lost $16,000  in  that. 

Q.  AVho  went  inf  Whom  do  you  meanf— A.  The  bank  went  into 
wool  speculation.  They  went  into  it  in  this  way:  There  was  a  man 
tiiere  by  th(»  name  of  Frank  A,  Primrose.  They  would  discount  Prim- 
rose's paper,  but  Primrose  was  simply  an  outside  agent  for  the  bauk. 
It  appeared  on  the  books  as  Primrose,  lie  was  getting  ilisconnts.  It 
vds  putting  money  in  Primrt)sc\s  hamls.  H(^  speculated  in  wool  for 
the  bank,  and  they  dropped  .'i!«l(;,0(K).  Thev  never  charged  that  on  the 
I  I'otit  and  loss  account. 

Q.  On  margin f— A.  On  hank  speculation. 

Q.  On  margins,  or  did  they  actuallv  buy  the  woolf— A.  I  guess  thev 
actually  bought  the  wool,  fnmi  the  size  of  the  discounts,  for  the  dis- 
(iounts  were  for  ten  and  fifteen  thousand  blocks. 

Q.  As  it  stands  on  the  hook  it  is  a  bad  debt  against  Primrose?— A. 
It  appears  as  though  it  was  Primrose's  paper,  and  Primrose  is  not 
worth 

m^^'  Piimrose  is  a  mere  figurehead?— A.  That  is  the  wav  it  looks. 
Then  there  are  a  number  of  small  accounts,  or  notes,  ranging  from 
$2,200.  1  can  give  you  the  names  if  you  wish,  sir.  For  instance,  a 
note  of  W.  H.  AVatson,  .1<2,200;  note  of  John  Kenaud,  jr.,  $4,000; 
another  of  W.  H.  Watson,  $1,300;  another  of  W.  H.  Watson,  $2,500; 
another  one  of  the  same  gentleman,  $500;   another  one  from  John 


Renaud  for  $4,921.67;  a  demand  not(»  o\'  John  C.  Lucus,  due  February 
1*5,  1887,  for  $1,800,  which  has  a  iiistory;  note  of  Samuel  B.  <lrif1ith, 
due  1882,  for  $7,278;  a  demand  note  of  Win.  Armstrong  (I  think  he 
<lied  a  long  time  ago),  $8,136;  note  of  John  C.  Lucas,  demand  note, 
issued  February  21,  1888,  $12,500,  and  another  one  for  $12,500.  Those 
notes  were  assumed  after  Mr.  Lucas'  dvi\t\i  by  the  estate  <>f  ;lolni  C. 
Lucas,  and  they  gave  the  bank  a  note  to  c()v<'r  those  of  $57,635.(J7. 
They  afterwards  paid  cash,  $7,635.67  and  gave  their  note  for  $50,000. 
That  $50,000 note  is  still  unpaid  and  in  the  clearing  house  now. 

().  Is  the  Lucas  estate  supposed  to  be  good  for  anything  ? — A.  Well, 
that  is  a  matter  of  litigation.     The  receiver  is  trying  to  find  out  now 

whether  it  is  or  not. 

Q.  1  )id  you  give ? — A.  They  paid  dividends  during  the  years  1889 

au<l  1890,  which  1  have  traced  up,  as  it  were,  and  1  found  out  how^  they 
made  the  appearance  of  profits  on  their  daily  ledger.  How  they  made 
it  up  (the  $60,000)  for  which  they  had  no  i)rofit  at  all. 

<^.  For  what? — A.  For  which  they  had  no  ])rofits. 

Q.  Show  how  they  make  the  appearance,  so  that  the  profit  and  loss 
accounts  show  that  they  apparently  had  fifteen  or  twenty  thousand 
dollars.  How  could  they  declare  dividends  of  $15,000  and  have  $5,000 
suriJlus  ? — A.  They  did  it  by  charging  exi)ense  items,  salaries,  etc.— in- 
stead of  charging  those  to  expense  accounts — into  the  bills  discounted. 
Bills  discounted  was  a  general  pool  for  coveHug  u])  almost  anything. 
The  duebill  account  w^as  another  i)Ool.  Those  tw  o  accounts  were  pools 
they  charged  things  in.  Then  they  paid  interest  to  John  IJardsley, 
whidi  is  simply  charged  to  duebill  account  and  never  Avent  to  interest 
account,  and  was  hid  in  that  way,  for  $77,276.81.  Now,  the  receiver 
has  in  his  hands  in  worthless  notes  and  accounts,  not  considered  in  here, 
$153,912.91.  This  now  makes  a  total  of  $1,751,743.60,  against  which 
they  are  given  credit  for  the  sale  of  the  bank  building,  $175,000,  which 
leaves  a  net  loss  of  $1,576,743.60. 

Q.  That  statein(^nt  as  you  have  given  it  now  shows,  at  any  rate,  Avhat 
became  of  a  portion  of  tliie  money,  not  only  the  caiutal  (►f  the  bank,  but 
money  which  they  received  from  Bardsley  and  others  and  have  not 
paid? — A.  Yes,  sir.  Now,  1  also  have  this,  Mr.  <  'hairman.  Here  are  tw  o 
(►ther  itt^ms  which  I  considered.  They  are  two  items  that  represent 
cash;  that  is,  they  represent  that  the  bank  paid  out  <'ash  for  them 
and  ha  ve  never  rec(3i  ved  cash  for  them.  They  are  in  the  shape  of  assets, 
but  >ou  can  very  easily  see  that  the  bank  was  out  of  currency,  out  of 
the  money.  For  instance,  doubtful  notes  and  accounts  in  receiver's 
hands,  not  C(msidered  in  the  above,  $437,189.17;  and  notes  and  ac- 
counts considered  good,  but  still  uncollecte<l,  in  tlie  receiver's  hands, 
$370,60().02. 

Q.  What  do  you  mean  by  that — ^^good,  but  not  collectable  f— A. 
Not  collected;  not  yet  collected.  There  are  items  amounting  to  $807,- 
795.19  which  represent  also  cash  that  that  bank  had  paid  out  which  it 
never  had  received  currency  for.  It  had  ]>aptH-,  and  in  some  instances 
accounts,  but  the  cash  ha<l  gone.  That  would  make  altogether  of  cash 
gone  out  of  the  bank,  $2,383,000,  although  $1,576,0(M)  is  the  actual  loss. 

(}.  Did  vou  examine  the  account  which  is  rt^ported  in  the  statements 
of  condition  furnished  by  the  bank  to  the  Comptroller  as  due  other 
banks* — A.  In  a  great  many  instances  I  did. 

Q.  Did  you  look  into  it  particularly?— A.  Yes.  sir;  by  sending  notices 

to  these  banks  and  getting  statements  from  them. 

Q.  As  to  the  accuracy  of  the  condition?— A.  Y^es,  sir;  and  comparing 
their  reports.  I  would  send  a  notice  to  these  banks  to  send  me  the  con- 
dition, the  balance  as  shown  on  their  books  at  a  certain  period,  and 


I 


it 


;I 


476 


INVERTIGATIOX   OF    XATIOXAT.    r.ANKS. 


INVESTIGATION    OF    NATIONAL    BANK!^. 


477 


give  7u<'  the  transactions  for  three  or  foni-  days  prjf)r  to  and  sncceedin^^ 
tliatdate. 

Q.  Will  you  please  state  how  you  found'  Miat  account  t<>  be,  how 
nearly  accurate f— A.  I  founda  <;ood  many  alterations  for  a  long  period 
about  October  10  and  July  li  in  those  accounts.  That  was  the  way  in 
which  I  proved  up  that  $48,(K)0  in  the  Tradesmen's  Bank,  and  as'bi' 
tween  the  Union  National  Bank  of  Lewisburg.  Tlie  Tuion  Xational 
Bank  sent  me  their  account,  showing  that  the  Keystone  National  Bank 
was  indebted  to  them  to  the  extent  of  some  forty-odd  thousand  doHars, 
when  they  had  manipulated  the  account— dropped  the  a<;count  out! 
There  was  nothing  there;  they  completely  wi])ed  it  out. 

Mr.  Payson  (to  the  chairman).  How  was  that  done,  Mr.  Chairman? 

The  Chairman.  Charging  the  baidc  as  though  it  had  made  a  remit 
tance  to  the  country  bank. 

The  Witness.  1  will  show  you;  they  used  two  sheets;  the  bank 
examiner  came  in  there  October  10,  which  was  the  middle  T)f  the  week; 
they  used  general  ledger  sheets,  which  are  unbound.  In  making  up 
the  new  sheet  the  beginning  of  the  week  they  droi)ped  out  the  ^3^48,000 
of  the  Lewisburg  Bank  and  started  in  with'.^r>00  and  some  odd  and 
soon  dropped  that  out;  made  the  alteration  of  the  .t4S,000  of  the  bank 
named  above. 

By  Mr.  Diokerson. 

Q.  They  had  that  much  more  money  with  the  Tradesmen's  Bank  ? 

A.  Keduced  both  banks.  They  continu<'d  that  during  the  time  the 
bank  examiner  was  there,  and  doctored  that  afterwards.  I  hai)i)ened 
to  have  both  sheets. 

Q.  Were  there  any  transactions  between  Examiner  Drew  and  the 
Keystone  National  Bank  which  were  disclosed  by  the  books  at  any 
point?— A.  1  found  one  transaction  on  January  31,^  188!^.     It  shows  oil 
the  discount  book  that  Mr.  Drew  got  a  discount  from  that  bank  of 
$1,800.    The  discount  book  shows  it— No.  21875,  dated  January  31,  for 
six  months,  due  August  3, 1889,  .1<1,S00.  The<late  August  3,  however,  is 
altered  inlead pencil  afterwardsow  thecnditbook  by  the  nanu'  **<lemand'' 
being  written  over  it.     The  notedoes  not  appear  undertint  head  (jfAu- 
gust3, 1882,  anddoes  not  appear  againat  all  until  Fcl  nuarv20, 1887.  There 
it  appears  on  the  "tickler"  as  V\  .  1'.  Drew,  witliout  any  number.    'K3air' 
(that  means  demand)  Ji<l,S00.    In  trying  to  trace,  U)  tind  out  how  that 
was  paid,  Mr.  Drew  had  no  account  in  (he  bank.     Ih-  had  a  little 
account,  but  nothing  to  amount  to  anything,  so  that  he  had  no  check  of 
his  on  the  bank;  no  check  that  1  can   llnd  anywhere  for  this;  and  the 
only  transaction  that  I  can  tind  that  would  appear  to  take  that  n\\  was 
a  check  of  John  C.  Lucas  for  $1,800,  given  that  day.     This  note  of 
$1,800  of  John  C.  Lucas,  a  demand  note,  under  the  same  date,  api)eared 
—1  have  learned  from  other  parties,  for  it  has  been  talked  abcmt  in 
town  there— that  Mr.   Lucas  protected  that  note  for   Mr.    Drew.     V 
heard  it  outside.     He  protected  Mr.  Drew's  indebtedness;  and  putting 
this  and  that  together,  this  demand  note  of  Mr.  Lucas  an<l  the  check 
which  appears  among  the  (checks  there  as  charged  to  Mr.  Lucas's  ac- 
count, leaving  $100  as  against  this  note  of  Mr.  Drew's  which  became 
due  that  date,  it  simply  put  that  appearance  on  it. 

Q.  Nothing  shows  that  Drew  ever  paid  the  note?— A.  Xothing 
to  show  tor  it.  The  note  for  $1,800  is  in  the  hands  of  the  receiver 
now. 

-    By  the  Chairman  : 
Q.  The  interpretation  of  what  you  found  there,  as  T  understand  it, 


amounts  to  this,  that  John  C.  Lucas  by  check  paid  the  Drew  note?— 
A.  And  got  the  uioney  from  the  bank  on  his  demand  note. 

*(^>.  Yes,  wait  a  minute;  in  February  1887? — A.  Yes,  sir. 

(i.  And  at  the  same  date  he  borrowed  $1,800  on  his  own  note  of  the 
Keystone  National  Bank  ? — A.  Yes. 

(}.  Which  remains  unpaid  to  this  date?— A.  What  remains  in  the 
liands  of  the  receiver  1  think  is  still  unpaid.  W>11,  hold  on;  I  ought 
to  ipialify  that.  That  ruite  was  one  of  the  list  of  notes  that  was  in  this 
lot  that  the  estate  of  John  C.  liucas  assumed  when  they  gave  the  bank 
t  his  $r)7,635  of  notes,  but  the  note  was  never  taken  up.  The  note  itself 
was  in  the  hands  of  the  receiver,  and  1  looked  at  it  only  two  or  three 

days  ago. 

Q.  It  is  simi>ly  ])aid  in  the  ])ro<;ess  of  the  settlement  to  which  you 
have  testitled,  upon  acccmnt  of  which  there  is  yet  $50,000  unpaid? — A. 
Yes,  that  is  right.  * 

Q.  Have  vou  any  statement  of  the  overissue  of  stock? — A.  1  tind 
that  at  the  close  of  the  bank  the  stock  account  showed  outstanding 
12,726  shares,  an  overissue  of  2,720  shares. 

Q.  Was  that  before  or  after  the  stock  held  by  Mr.  Wanamaker  for 
operations  with  Mr.  Lucas  had  been  surrendered? — A.  I  think  this  in- 
cludes that.  I  have  the  index  here  by  which  I  can  show  you  the 
transactions  of  Mr.  Wanamaker  with  all  that  stock  [referring  to  book]. 
Here  [indicating]  are  Mr.  Wanamaker's  transactions: 

John  Wanamaker,  for  instance,  No.  380,  it  will  be  found  here  [indi- 
cating]. I  think  you  can  begin  on  this.  This  is  simply  at  the  close  of 
the  bank.  That  was  all  wound  up.  But  here  is  the  history  of  the 
AVanamaker  stock  [examining  books  and  papers].  There  [indicating] 
is  the  first  of  that  issue.  No.  380,  July  11,  1883— John  Wanamaker,  COO 

shares. 

Now,  No.  445,  we  will  find  again  200  shares.  By  subsequent  certifi- 
cate. No.  450,  this  was  canceled  there.  Then,  No.  450,  this  was  the 
old  issue,  and  then  this  became  No.  907.  No.  907  appears  in  the  name 
of  Cyrene  (?)  P.  Dunham ;  another  party,  same  certificate,  but  the  name 
is  transferred  to  Cyrene  P.  Dunham.  Then,  comes  Nos.  445,  46, 47,  49, 
oO— a  whole  string  of  them  here.  You  see  45,  200  shares;  40,  10(» 
shares;  47,  200  shares. 

Q.  What  are  those  amounts ?—Tliose  are  canceled  and  <hanged  into 

these  other  names — 50,  51,  52,  7yoy  and  54. 

Q.  Those  are  canceled? — A.  Yes,  those  are  canceled  entirely,  hav- 
ing been  transferred.    Now,  you  find  a  number  (JOS. 

Q.  But  I  do  not  understand  that.— A.  No.  (iOS  is  the  025  shares. 
You  see  they  all  are  lumped  into  that  from  (>10;  and  you  will  find  that 
Nos.  450,  51,  52,  53  and  54  become  afterwards  008,  025  shares. 

Q.  Now,  45  becomes  50,  51,  52,  Ty^  and  4;  that  is  1,(MH)  shares?— 
A.  Yes 

Q.  50,  51,  52,  53,  and  54.  Then  that  is  1,000  shares,  and  (>08  is  only 
for  625  shares ?^ — A.  (i25  shares. 

Q.  Where  is  the  rest  of  it?— A.  The  balance  are  canceled;  taken  up. 

(,).  They  do  not  account  for  this  Lucas  matter;  that  is  what  1  wanted 
t4)  find?— A.  There  is  a  history  to  that  Lucas  matter.  It  can  be  traced 
up  by  this  index.  There  is  the  stock.  A  great  deal  of  that  Lucas 
stock  was  taken  from  a  new  certificate  book  that  we  found  in  the 
vault— a  certificate  of  stock  book  from  which  14  certificates  had  been 
abstracted. 

And  thereupon  the  committee,  at  4;35  p.  in.,  adjourned,  subject  to 
the  call  of  the  chairman. 


li 


478 


INVESTIGATION    OF    NATIONAL    HANKS. 


Washington,  I).  ('., 

Fr'uluy,  June  JO,  1,S9;J, 

Tilt'  committee  uwt  at  10  u.  in.,  Hon.  lltMiry  liacon  in  tlic  cliMir. 
rreseiit:   Messrs.   Kendall,  Dickeison,  Speiiy,  AY  ike,  Walker,  Hen- 
derson of  Illinois,  and  ('ate. 


TESTIMONY  OF  A.  R.  BARRETT— Resumed. 

By  the  <'ii  airman: 

Q.  Vou  were  asked  at  ll»e  last  lieariiii;  wliellier  there  was  any  reeord 
of  the  notes  jiiven  for  the  real  estate  held  by  the  Keystone  National 
Bank  when  it  ranu'  into  the  latioiial  hank  system,  and  whether  any- 
thin  ;>•  of  that  kind  appeared  ninni  its  hooks.  *lJave  yon  made  a  further 
seareh  to  see  whether  any  sncdi  reeord  can  be  found  t — A.  Ves,  sir.  I  went 
throu«;h  the  dis4'onnted  notes  and  made  a  careful  examination  of  the 
books  of  the  bank  to  see  if  1  could  hn<l  the  notes  of  the  parties  whose 
names  I  found  on  the  minute  book  as  bein^-  in  that  transaction. 

Q.  Is  this  a  copy  of  the  resolution  which  you  saw? — A.  Yes,  sir.  It 
is  just  as  it  apju'ars  on  the  minute  book. 

The  paper  was  read  in  evidence  and  marked  No.  1,  of  this  date. 

KXHIIUT  1. 

Cojfi/  of  resolution  f'ntind  on  thr  miniittH  of  the  hfiff<loite  \atiotfal  Hank  of  Vhiladelphia, 
Pa.,  undrr  dahnf  .faiiKori/  'J-'>,  /S7(J,  relalive  to  the  Hnhatitutlon  of  notes  of  the  diiectois 
of  aaiiX  honk  for  i-eal  exfutt . 

Tlif  coimuitttT  of  KichiiMUHl  pioinTty  wonld  irspiM-t fully  rejMirt  "Tluit  iliMiiiinj; 
thr  sale  of  tilt"  in-opi  rty  at  tin-  pnscnt  iiupnssibh*  withcmt  ;;n*at  loss,  n'r<»iim!«'ii<l 
that  it  Ix'  caniril  as  follows: 

"That  whj'rcas  tlu'  Kcystoiu"  National  Hank'  is  tin-  owiinof  a  lot  ol«;romnl,  ahont 
7^  ancs.  sitiiah'  oti  KMchnioiHl  stnM't,  hetwcrn  Ghtii  Lane  and  Lewis  stnet,  Twenty- 
fifth  ward,  whieh  lot  is  valne«l  at  $20,000  on  tin*  hooks  of  the  hank; 

'■An<l  whenas  it  is  <lesired  hy  the  hoard  of  <lir«<tors  to  ii'inove  said  real  estate  from 
the  assets  of  the  l)ank  and  8ul»stitnte  therefor  l»ills  reeeivahle: 

"Now  this  ajirecinenl  witinssi'th  that  the  nnd(M-si;;iied  directors  of  said  hank  do 
a^rw  to  furnish  and  have  this  day  plaeetl  in  the  hank  the  notes  set  opposite  caeh 
name. 

*•  Thomas  All. man.         C.  Wm.i.iams. 
"Thomas  Lkw  is.  W.  AwMsTHoxri. 


11.     1.    ClJlMl'. 


(J.  Ji.  Mainks. 


"Tin-  sai<l  notes  to  hr  reinwrd  from  tim<'  to  time  without  inteiest  as  they  mature 
until  said  lot  of  yroimd  shall  have  Iummi  sold  hy  sai«l  hank,  then  the  said  noti's  to  he 
returiH'd  to  the  respe<tivt^  parti<'s  lu'rein  named,  their  In-irs  oi'  assi;:;uN. 

"It  is  hcrehy  understood  hy  the  respective  parties  to  the  ahove  ao;reenient  that  in 
no  ease  shall  tho  said  notes  l>c  protested,  nor  the  drawers  and  indorsers  of  said  notes 
(held  hy  the  hank  <mly)  )»e  responsihlr  for  the  payment  of  the  sauu',  as  they  were 
jjjiven  <Mily  for  the  object  and  purpose  herein  nanu'd. 


"►Signed  as  follows: 


"Thomas  Allman.  Pt. 
"Thomas  Ali.man. 
"Thomas  Li: wis. 
"II.  I.  CniMj'. 


r.  Williams. 
W.   Ai{MsTi:ox<i. 
(L  I  J.  Ha  INKS." 


When,  (Ml  motion  the  re|)ort  of  the  K'ichmond  jjropcrty  committee  l»e  r<*ceived  and 
entered  upon  the  minutes  and  that  Mr.  Armdd,  th«'  soli<'itor  of  the  hank,  he  in- 
structed thatdei'd  for  the  said  Uithmond  j>ropcrty,  at  the  value  of. $20,000,  on  the 
books  of  th<'  bank  he  made  to  Mr.  Thomas  Allman  in  trust  and  held  by  the  bank; 
which  was  unanimously  adopted. 

•  «•#•** 

.1.  B,  WisWKLL,  ('af(hia\ 


INVESTIGATION    OF    NATIONAL   BANKS. 


471) 


By  Mr.  VV'ike  : 
Q.  I)o(\s  that  show  that  the  notes  Avere  not  to  be  presented  for  pay- 
ment?— A.  Yes,  sir. 

By  the  CilAimiAN: 

Q.  Will  you  phrase  state  what  this  paper  is  |handin-  pai)er  to  wit- 
„ess|?— A.  This  is  a  sehedule  of  the  eertiticates  of  deposit  whieh  were 
paid  by  the  Keystone  National  liank  between  the  dates  of  Aprd  li.S, 
ISS.%  and  the  close  of  the  bank. 

Q.  Anil  to  whieh  yim  have  referred  in  your  former  testimony  .—A. 

Ves,  sir.  .   ,     i       i       i  4- 

<^.  So  that  the  etieet  of  the  entries  on  the  books  ot  the  bank  relatmii- 
to  these  eertitieates  is  to  show  that  these  were  issued  and  jjaid  withcmt 
any  value  received  for  them?— A.  That   is  the  way  it  appears  on  the 

books. 
Q.  That  amounts  to  .ii^ll-M.74n.;;L^'— A.  Y^es,  sir. 

The  paper  was  marked  to  be  inserted  in  the  record  as  Exhibit  13 

of  this  date. 

Exhibit  2, 

Schedule  of  cerfijicates  of  deposit  paid  and  charged  to  certijicalc  of  deposit  account  for 

uhich  no  rrcdits  can  he  found. 


Date  of 
issue. 


Name. 


Nuni- 
iM-r. 


Datr  of 
payiiu'iit. 


'  Xame  uii1<mowii  :  ««rtitiij«tc  and  stabs  iiiissinjr 

18S0. 
Mav     JO     K.  W.  ShufWt 

f887. 
Mav        0     Jauu's  Selfridjiv 

18K8. 

FeU'v  21 
Mav"  18 
.Inly 


Sepk 


ri 

") 
.'» 
1 
1 

15 


1888. 

Aug.  :jo 


Nicola  Manoia 

Mrs.  .Icnnic   Unlloek 

W.  J.  IJvan 

C.  H.  Kitlt-r 

<lo 

do 

do 

do 

do 

I'liknown 

do 


'.YM 
!n»6 

1182 

\U-2 

17-H) 

I8i!:! 

1825 
1857 
1858 
185!» 
18«)(» 
18(51 
1862 


A  pi 
Mcli. 


2;{.  85 
:{.  HG 


U.  H.  Yard.. 


17  I  Sani'l  Thorn  (tnd.  11.  II.  Vard> 

:K)  I  H.  Thonia.s  (end.  II.  II.  Yard) 


21  !  AV.  S.  .lack.son  (end.  II.  II.  Yard) 
1889       I 
Mcli.      5  I  W.  S.  daitkwMi  (eml.  11.  11.  Yard) 
188(J.     ! 

Dw.      15      Miss  K.  M.  Clianil»erlain 

i  I'nknown 

1889. 
Au*;.    JO      K)ank  AVilmnnd<r 


20115 
2(I0U 
201(1 
2(11 1 

2tl5S 
1 :{(»() 


May    28,  "80 

May    11.  "87 

danv  14. '89 
Jnne  5.  "88 
Jnlv  11. '88 
Auji.   10.  "88 

. do 

A»i<r.  25.  "88 

.  . .  .do 

Sept.  14. '88 

.  .    .d«. 

Ort.  10. '88 
Oct.     :m."88 

Si'i»t.  24.  '88 

S<'pt.  19.  "88 

S«'i»t.  18,  "88 

Sept.  19,  "88 

Mrh.     9,89 


•Inno 
Mav 


5.  '80 
4.  89 


2181         IhHi.     14/89 


Cliargeil  on  s<r:it«li.r  to  ««MtiHeat«iof  d«'po.sit  rV.  l»"t  on  (J     ^opt.  Jfi,  89 

i      ItMlf-er  to  Central  Savinu  Finul \    J  J|j-      _••  .^^ 


Nov 


\iv 


16     H.  H.  Yaiil 

16  ! do 

...do.    .. 
....<lo  .... 

do 

...-do  .... 


16 

1« 
4 
4 


1890. 
Jany     4 


Apl.  23 

-Vpl.  28 

Apl.  28 

.\pl.  28 

July  a 


2-21»4 

2295 
2:«(>1 
2!02 
2:us 
2;n9 

2:}52 


Nov.    19.  89 
....do    

...do    

do 

Dcr.       5.  "89 
...do 


Sarah  Ann  I'arlow 

Chftd.  on  srratiiur  torert.  of  d.-p  .  !mt   on  l!'d'j:»r  to  S 
Central  Savinji  Fund.  i 

C.  n .  Fithr 

H.  n.  Yard 

do.... 

do 

du 

*Stul>  dated  April  2;);  ciitituatedaU'd  May  a. 


2.551 

2558 
25»;2 

25i;:j 

2017 


.lanv  31.  "90 
I'Vliv.  18, '90 
.\])\'.  11. '90 
.lunc  2.'iK» 
Apl.  :m». '90 
Mav  l.'iM) 
Mav      1.90 


Julv 


!W 


Amount. 


.t('»00.  00 
432. 95 

300. 00 

275. 00 

404.  95 
125.00 
500. 00 
500. 00 
.500.  00 
.500.  IK» 
.500.  00 
475.  00 
500.  (HI 

504. 9:; 

125. 00 

5.  000.  (K) 
5,  000. 00 
5,  000.  00 
5. 000. 00 

2. 000. 00 

200.  (K» 
109. 00 

225.  00 
2.  447.  .50 
5. 000.  00 
5.  000.  00 
5.  (K»;t.(K) 
5.  0(.(i.  (  0 
),00(t.  0(» 
1.000.00 
2.ltO(».  «»0 

1 .  201).  00 

200.  (Ht 
99.  88 

2.  (KM>.(»0 
2.377.43 
(i.  (HK).  00 
8.000.00 
7.000.00 
9,  000.  0(1 


1 


j^ 


I 


»„ ;  I 


,L 


480 


INVESTIGATION   OF    NATIONAL   BANKS. 

Svhednhof  ciriijieatts  of  depoxHy  «/<;.— Continued. 


Date  of 

issue. 


1890. 
July       .{ 
July       li 
July      3 


Sept.  22 
S<-pt.  22 
Nov.     18 


1891. 
Jauy.  13 


Nuuio. 


H-  H-Vatd 

I 

no 

(;iiar«;»'«l  «o  (N'utnil  Saviuy;  Fund  on  i«(lj;»r  .....!...! 
H.  Askin 


Cliaiycil  on  l«>il«;rrlo  CrnJral  .Savin;;  Fund 

II.  Askin 

do 


Num- 
ber. 


7>aft>  of 
l»ayiueut. 


■i- 


2lilS 
2tf2« 
2U:{5 


l^M 


Pooloy  HroH 

W.  S.  .larksou  (v\u\.  H,  H.  Yanl).. 
"VV.  S.  Ja«k.son  (<ihI.  H.  H.  Yard).. 
Unknown 


Cr. 


r>y  tt'lkr  »  cash  ovns  <i'«dit('d  t«>  <»rl.  of  dcp.  account.. 


2670 
2fi7I 
2717 
2742 
2743 


Julv 

July 

Jub- 

S«jtt. 

.Srpl. 

S«'pt. 

S.,,1. 

.S«';»1 . 

S«pt. 

Nov. 

Janv. 

I)e<' 

Janv. 


8,     m 

1."),  "90 
2s,  JKI 

23,  'm 

10.  '!MI 
17,  IMI 
17.  •«)  I 
2.'.,  "JM)  ! 

24.  m  i 
IS, -(xt  I 

3,  SM   1 

:n/9u  ! 

22,  91 


Aniouut. 


*7(M>.  (H) 

4.  000.  00 

5,  (KK).  (M) 
2.  (NNI.  (H) 
1.  ."HK).  00 
:i.  000. 00 

1 .  GiHJ.  t)S 
1,.'>00.  OO 
1,(KX).00 

2,  OOO.  00 
2,  .KK).  )N» 
•i,  .'>00. 00 
1,000.00 

12:},  449. 32 

1,  700. 00 

121,749.32 


Ihe  extiviiu'  carelessness  .sh»\vn  in  tiie  k.-eping  of  this  account  has  necssitated 
!JVL^T''"""",'"*^'  cloK.'ly  all  the  al)(»ve  itcms^vitli  the  result  of  ehan«Mnj>  the  sum  by 
$400  Ironi  Avhat  was  previously  report<'<l.  A  number  that  are  char«re(l  to  eert  of 
«lep.  acct.  have  no  number  on  the  leil^ov,  and  we  have  failed  to  tin<l  who  they  were 
given  to.  and  have nunked  them  ''unknown."  A  nunil)er  are  i-harged  on  the scr'atcher 
as  ''eertihcate  of  deposit."  or  ''cert,  uf  dep..*'  or  -(«.  I).,"  but  an-  post.Ml  on  the 
ledger  to  the  debit  ot  the  acct.  ot  the  Central  Trust  and  Saving  Fund  Co. 

A.    li.    iJ.VlJKKiT. 

By  the  Chairman  : 

Q.  What  are  the  dates  g:iven  ou  this  paper  ?— A.  They  are  dated  at 
the  time  of  payment. 

Q.  So  that  an  examination  of  that  a<'eonnt  and  the  dates  shown  as 
the  date  of  i)aynient  on  this  exhibit  would  have  enabled  any  person  to 
discover  that  these  certificates  had  not  been  paid  for  and  were  without 
any  correspond  in  ji  credit?— A.  Ves,  sir;  but  there  are  some  few  ex - 
phmations  to  be  made  of  that.  There  are  several  items  as  1  have  noted 
here  at  the  bottom  which  arc  charged  as  certificates  of  deposit  and 
were  so  written  ii])  in  the  scratcher.  In  tracing  in  the  ledger  thev  were 
found  chari^ved  against  the  account  of  the  Central  Trust  Company'whicli 
was  run  m  connection  with  this  bank.  They  were  writt<m  ui»  by  one 
clerk  in  full  in  some  instances  and  in  .some  instances  abbreviated  and 

!?^  ^^]}^^'  ''^''^^  1^^^^^^  ^^'^'"^  '"  ^''^  ^*^^^^'«'-  ^  "ii^<^<*  that  notation  at 
the  bott(mi  of  the  Kxliibit  U  because  I  took  the  ground  that  tliese  were 
entered  up  m  their  full  name  on  tliese  scratchcr.s,  and  why  thev  should 
S?.^n.w.^*^"  P""***^^^  "'  ^^'^^  "^''y  ^  ^^«  "«^  k"«w.    I  think  it  is  about 

Q.  You  have  read  over  this  testimony  ?— A.  Yes,  sir. 

Q.  Are  there  any  corrections  which  you  desire  to  mak<'  other  than 
the  clerical  ones  you  have  already  made?— A.  I  think  not 

Q.  When  we  scparat(^  tiie  other  day  you  were  looking  at  this  stock 
account.  Can  you  turn  to  it  now?— A.  That  is  the  final  list  as  the 
8to<*k  stood  at  the  close  of  business. 

Q.  There  are  some  particular  stock  transactions  that  I  want  to  ask 
you  about;  for  instance,  the  Lucas  stock.  I  want  to  inquire  how  much 
pt  that  was  issued  and  what  became  of  it,  as  far  as  you  know*— A  In 
trmang  these  cerfificates  it  is  extremely  difficult  to  find  out  the  pur- 
pose lor  which  many  of  these  certificates  have  been  used.  We  found 
that  on  the  certili<ate  of  stock  books  a  (!Oiiii>aratively  careful  record 
had  been  kept  up  to  July  27, 1880  (during  tlie  administration  of  .Mr, 


INVESTIGATION    OF    NATIONAL    BANKS. 


481' 


Wiswell);  but  after  Mr.  Mar.sh  came  in  (which  was  in  1880,  I  tliink) 
very  few  entries  of  transfers  were  made  on  the  stubs  of  the  books;  and 
while  a  feeble  attempt  had  been  made  to  keep  the  transfer  book,  only 
seven  or  eight  entries  had  been  made,  so  that  it  was  virtually  useless. 
After  that  period,  or  the  period  of  the  summer  of  1880,  up  to  about 
January  1,  1890,  there  was  an  almost  absolute  neglect  in  entering  the 
transfers,  and  thereby  making  the  tracing  of  transfers  of  this  stock 
almost  an  impossibility.  We  simply  did  the  best  we  could.  We  could 
not  trace  all  of  them.  We  put  them  down,  but  we  could  not  make 
them  up — on  those  lists  which  (contained  most  of  the  Lucas  stock. 

:Mr.  Walker.  Is  there  anything  upon  the  books  to  show  or  exidain 
this  neglect,  or  the  probable  reason  for  it?— A.  I  should  judge  from 
what  I  saw  that  they  were  overissuing  for  the  purpose  of  raising  money, 
for  the  purpose  often  of  putting  up  certificates  as  collaterals;  I  judge 
upon  what  I  learned  outside,  as  well  as  in,  that  they  were  utterly  reck- 
less in  issuing  certificates.  I  learned  from  a  responsible  party  (a  party 
who  had  dealt  largely  in  stocks  and  bonds,  and  who  gave  me  the  op- 
portunity of  looking  over  his  books  for  the  purpose  of  learning  from 
them  what  sales  and  transfers  he  had  made  of  this  stock),  that  it  was 
a  frequent  occurrence  when  sales  of  the  stock  of  this  bank  had  been 
made  by  him  to  send  a  clerk  up  to  have  the  proper  transfer  made,  and 
that  Marsh  would  take  the  certificates,  look  at  them,  rumple  them  up, 
and  stick  them  into  his  pocket.  He  would  then  fill  out  another  cer- 
tificate and  hand  it  to  the  clerk.  The  old  one  he  cmmpled  up  and  put 
it  into  his  pocket.  That  seemed  to  correspond  with  the  way  we  found 
the  business. 

By  Mr.  Dickerson  : 

Q.  You  did  not  find  any  of  the  canceled  stock  at  all!— A.  We  found 
a  great  many  certificates  that  had  been  pasted  back  in  the  certificate 
book,  but  no  entries  on  the  book.  There  was  nothing  by  which  to 
trace  it;  no  entries  or  assignment  at  all  on  many  of  them. 

Q.  Was  nothing  at  all  on  the  book?— A.  In  some  instances  there 
was.  Some  parties  brought  them  up  and  had  the  entries  niade.  In  a 
great  many  instances  there  was  no  assignment,  and  nothing  to  show 
to  whom  the  stock  had  been  sold,  who  htwl  bought  it,  or  who  had  made 

the  transfer. 

Q.  You  could  not  take  the  books  and  maintain  an  action  against 
the  stockholders!— A.  That  was  the  difficulty  with  the  receiver.  AVe 
found  one  certificate  of  stock  book.  It  was  the  certificate  beginning  with 
Ko.  900.  It  began  regularly,  and  was  running  through  the  numbers  up 
to  1000.  but  that  was  not  used  up.  But  we  also  found  a  new  book  be- 
ginning with  '<'  1001."  Forty  eight  certificates  had  been  completely  cutout. 
Fourteen  were  entirely  gone.  The  certificates  lay  in  the  book,  and 
some  of  them  lay  loose.  We  have  since  come  across  a  small  list  in  Mr. 
Marsh's  desk,  which  I  think  gives  a  little  history  as  to  what  had  bei'ome 
of  some  of  those  fourteen  certificates.  What  we  found  was  simply  a  slip 
of  paper,  about  as  long  as  my  hand  and  about  as  wide,  on  which  he  put 
down  certain  numbers,  which  correspond  with  the  numbers  of  those 
missing  fourteen  certificates.  It  contains  the  number  and  name  and  a 
figure  which  would  probably  represent  a  certain  number  of  shares,  but 
there  were  no  entries  on  it  which  Avould  explain  it.  The  name  of  H.  H. 
Yard  a])pears  with  no  number  of  shares  to  two  of  the  certificates  on 
this  list,  but  I  could  not  state  what  that  represented. 

By  Mr.  Walker  : 
Q.  I  would  like  to  ask  the  witness  the  custom  of  banks  as  to  the  issue 

3792 31 


il 


t 


I" ,» 


482 


INVESTIGATION   OF    NATIONAL    BANKS 


uiitl  preservation  of  certificates  returned.  T  want  to  know  what  tlie 
custom  of  well-regulated  banks  is  as  to  making  a  record  on  the  stubs 
of  certificates  issued. — A.  The  custom  in  all  well-regulated  banks  is  to 
make  a  complete  entry  on  the  stubs,  not  only  of  the  name,  number,  and 
amount  of  the  shares  of  original  issue,  but  also  of  the  name  of  the 
l^arty,  the  number  issued  or  transferred,  and  when  the  transier  is  made. 
That  is  done  particularly  where  no  transfer  book  is  kept,  as  is  the  case 
with  sonu'  banks,  but  a  well-regulated  bank  will  keep  a  carefully  kept 
transfer  book,  or  note  carefully  all  transfers. 

By  the  (  -hairman  : 

Q.  Before  you  go  any  further  with  that  stock  matter,  I  will  ask  you 
if  you  know  that  certain  certificates  were  returned  by  the  represeuta 
tives  of  the  Lu(;as  estate  and  canceled  ? — A.  Yes,  there  were  about  2,516 
shares  so  returned. 

Q.  Are  any  portion  of  those  represented  by  certificates  issued  to  John 
C.  Lucas,  or  are  they  shares  issued  to  other  people  and  signed  in  blank  ! — 
A.  I  do  not  exactly  catch  your  meaning. 

Q.  Vou  know  there  were  a  number  of  shares  issued  to  John  ( \  Lucas. 
Did  those  canceled  shares  include  the  shares  issued  to  Lucas?  Were 
those  issued  to  Lucas  or  any  part  of  them  returned? — A.  I  will  see. 
Here  is  a  list  of  the  stock  as  we  found  it.  There  seems  to  be  standing 
in  the  name  of  John  O.  iiucas  925  shares. 

Q.  Are  those  a  part  of  the  2,3()0  that  were  surrendered? — A.  We 
have  2,726  overissue,  and  that  2,516  shares  is  a  [)ortion  of  this. 

Q.  It  is  only  for  the  purj)ose  of  making  your  testimony  clear.  I 
woidd  like  to  have  a  history  of  Mr.  Lucas's  o])erations  in  the  stock  of 
that  company,  with  the  dates  of  the  transfer,  an<l  the  turning  over  of 
the  stock  that  seems  to  have  been  issued  to  him. — A.  I  will  see  what  \ 
can  do  in  that  respect.     1  have  got  his  name  and  the  number  of  shares. 

Q.  Does  your  memorandum  give  the  dates? — A.  My  memorandum 
gives  the  dates  exactly. 

i).  Take  the  first  one  and  iaU  us  what  are  the  number  of  shares  and 
what  became  of  them. — A.  John  C  Lucas  first  became  a  stockholder  of 
25  shares  of  stock  on  the  26th  of  May,  1876,  by  certificate  No.  91. 

By  Mr.  DiCKEBSON : 

Q.  Was  that  the  date  that  the  bank  organized  as  a  national  bank? — 
A.  It  was  after  its  organization. 

By  the  Chairman  : 

Q.  W^hat  became  of  that  ct^tificate  ? — A .  Tha  t  certificat4»  waschanged 
in  the  number  255  of  the  State  bank.  On  the  26th  of  February,  1879, 
there  was  sold  to  Mr.  Charles  D.  Norton  25  shares,  and  the  old  cer- 
tificate was  canceled.    That  is  still  outstanding. 

Q  Take  the  next  one. — A.  The  next  was  January  28, 1879,  certificate 
187  for  100  shares. 

Q.  What  became  of  that? — A.  That  was  transfeiTed  on  February  11, 
1879,  to  W.  H.  Haines. 

Q.  And  that  terminated  Mr.  Lucas's  connection  with  that  matter? — 
A.  Yes,  sir. 

(The  witness  here  produced  pai)er  and  states  that  thepai)er iontains 
a  list  showing  the  names  of  the  stockholders,  the  number  of  shares 
held  by  each,  and  the  numbers  of  the  certificates  representing  such 
shares  at  the  date  of  the  closing  of  the  bank.  The  i)aper  was  read  in 
evidence  and  marked  Exhibit  .3  of  this  date.) 


» 


INVESTIGATION   OF   NATIONAL   BANKS. 

Exhibit  3. 


483 


stock  ouMandipg  at  the  closino  of  the  Keystone  National  Bank,  Philadelphia,  Pa.,  March 

^0,  lolfl J 


Date  of 

lasuc 

). 

2,  24, 

'79 

12,  1, 

'90 

9,  25, 

'89 

2,  11. 

'91 

2,  4. 

'86 

2,  11, 

'91 

2,  11, 

•91 

6,  27, 

'90 

10,  23. 

90 

5,  6, 

'86 

11,  5, 

'87 

2,  11, 

•88 

11,  19, 

'88 

1,  29, 

•91 

5,  6. 

'86 

Hobert  ArMiiir 

Fannie  R.  Artliur 

Mrs  M.P.Allan 

John  W.  Anderson  . .  - 

Krwiu  A  jrnew 

A?no.H  N.  Audtsraon. . . 
.  John  W.  Ander.son,  jr 

W.J.BaiT 

Howard  Bell  &  Co  ... 

('.  E.  Baincs 

do 

H.S.  Ba.stian 

......  OO  -.-•----•--•"-■ 

do 

W.B.Bradley 

3,  is!  '79  \  C.  l'iint»inj;hoffer.... 

Ill     1.  "87  i do 

5,    6,  '8«     M.  A.  Beatty 

5,    6.  '86  I  W.  A.IJemier 


.....•-•  ..••-^•••--•' 


do. 

B.  C.  Burn.H 

"W.  H.  Brool<s 

D.  \X.  IJodine 

.John  A.  8.  Brown 

.....  do  ,..-.----•.----' 

(reorjue  Brown 

do 

^^    ^ do 

l'    7^  '91     Augustus  M .  Bucher  - 

l"    9'  '91  ' do 

1,  15,  -91    do 

1,  20,    91  ' do 

1    29    •7.'^  ■  B.  F.  Brenneuian 

5,     e!  '86  i do 

11.    1.  '87    do  .... 


11,     5,    87 

9,  30,  '75 

11,  24.  '90 

11,  22.  '90 
1,  16,  '88 

12,  24,  '88 
1,  16.  '88 

1,  21.  '88 

2.  1,  '88 


2,    5. 


5,     i,  '»«    <}o 

11      1,  '86  i do 

4  12    "39     Ilev.  R.  R.  Bmlianan . . 
2,    l\  '91  1 do 

5  6,  '86  ;  Letitia  Cunuuig 

11'     I,  '87  ' do 

2   11,  '88     John  H.  Ca'sady 

9',  27.  '88  ; do 

12,     3,  '88  : do 

8,  15,  '89    do 

12,  30,  '85     John  Crump 

2    10.  '91     (leorge  R.  Crump 

4',    8.  '78  i  H.J.  Crump 

do 

do ■ 

Sarah  C.  Chapin 

do 

'3'  20,  '79  i  Mrs.  D.  E.  Cooper  .  - . 

5,    6,  '86  !  W.  P.  Cox 

No  date ... ' do 

11,     1,  '87 

11,  1,  '87 

2,  1,  '90 
7,     1,  '90 

3,  30,  '89 
2,  12,  '91 
7,  12,  '87 

12,  18.  ^88 
1,  29,  90 
1,     9,  '89 


'91 
2;  10,  '91 
3,    %  '79 
11,     1,    87 


5,  '86 


do. 


Mrs.  Marv  J.  Chambers 

Richard  1\  Cadbury 

do 

Lavinia  M .  Cann 

Joseph  F.  Cummings  . .  - 

Mary  Ann  Davis 

do 

do ■- 

(reorge  K.  Diihis 

A.  D.  Downs. 
Emma  Down.-^ 


5, 

11,     1,  'S?  , 

11    19,  '90     Serin";  V.  Dunham 

11,  19,  '90  1 do 


No.  of  I  Num-     Total, 


certili- !  ber  of 
cate.   !  shares. 


eacbac-    Total, 
count. 


4    14  '82  '  Rachel  A.  Brown j 

1'  29'  '91  '  JobnO.  Bowman •  | 

9'  7'  '91  do : I 

2'  8  '73   Daniel  lUick,  old  certihiate j 

t'       •'  'u«        <ln     - i» 


214 

926 

855 

9G8 

443 

966 

967 

987 

903 

459 

6r.8 

768  I 

808  j 

951  1 

461 

255 

656 

462 

463 

6.59 
35 

913 

912 

7.->:j 

817 

754 

756 

! 
'"937 'I 

943  I 

940 

950 

404 

6.57 

352 

956 

962 

202 

585 

724 

830 

963 

467 

689 

769 

786 

80U 

8.53 

431 

965 

153 

960 

964 

243 

061 

256 

471 

5S3 

614 

666 

879 


10 
21 
10 
20 
.50 
30 
20 
5 
10 

25 

25 

25 

1 

5 

1 

10 
10  i  ( 

2  5 
10 
40 
20 
10  \ 

5  5 


5 

5 
10 
10 

8 
20 

2 

50 
50 
25 
S5 


I 


1 


0  ^ 

5 

10  > 
12  5 

'A 


6 

6 

8 

10 

10 

10 

5 

5 

7 

10 

6 

10 

13 

11 

20 

20 

10 

2 

2 

5 

5 

5 

10 

200 


899 

200 

828 

1 

976 

20 

622 

10 

814 

10 

878 

12 

819 

10 

5.54 

20 

643 

.) 

907 

200 

908 

UX) 

10 
21 
10 
20  i 
50  i 
30 
20 
5 
10 

31 

75 

1 

6 

10 

12 

10 
40 
20 

15 
20 


40 

125 

25 
22 

20 

20 
15 

28 

10 
13 

51 

12 
2 

15 

10 

400 

1 
20 

32 

10 

20 

5 

300 


10 

21 
10 
20 
50 
30 
20 
5 
10 

31 

75 

1 

6 

10 

12 

10 
40 
20 

15 
20 


40 

125 

25 
22 

20 

20 
15 

28 

10 
13 

51 

12 
2 

15 

10 

400 

1 
20 

32 

10 

20 

5 

800 


i«o  certificate  found  for  10  shares. 


!» 


484  INVESTIGATION   OF   NATIONAL   BANKS. 

Stock  oHisfaiidinq  at  the  clomig  of  the  Keystone  National  Bank,  «<c.-— Continued. 


9,  2(»,  '75 

11,     1,  '87 

H.  2i>.  '89 

9.  22,  '75 

5,     «;,  '86 

5,     6,  '86 

5,     6,  '86 

1,     1.  '87 

10,     2,  '88 

1,  8,  '91 

4,  26,  '90 

2.  IH,  '%:\ 

5,  6,  '8li 
1,  '88 

6,  m 

1,  '87 

1.  '87 


ExcelHior  Div.  No.  20,">,  S.  of  T 

.do. 
Spencor  Krvin 
(;eor;tf«'  T.  Ki.lcls. 

(Jeoiiiie  T.  (Jahell.  Jr 

Mary  Ann  ( iotortli 

Mth.  Sarah  T.  (traliani. 

do 

E.  M.tJans 

do 


5, 
11 

n, 


.Toliii  (Irecnwcll 

\Valtfr(Janrtt 

J  oMt>i»li  I  i  re;nson 

do 


5,  16.  '89 


2.  W,  '91 

5,  6,  '86 

1.  l;!,  "90 

1,  13,  '90 

1,  KJ,  "90 

1,  :iO.  '88 
11.  10,  '90 

2;  26,  79 

fi,  6,  '86 

11,  1,  '87 

9,  22,  '75 

11,  1,  '87 

7.  9,  '86 

11,  1,  '87 
5,  6,  '86 

2,  8.  '76 

1,  28,  "79 

2,  11,  '79 

12,  15,  '80 
:i,  14.  '81 

11,  12,  '83 

12,  17,  '83 

3,  14,  '84 

4,  9,  '84 
4,  9,  '84 
4,  9,  '84 
4,  9,  '84 
4,  9,  '84 

4.  9,  '84 
11,  10,  84 
11,  15,  "89 
No  date... 

Do 

>  Do 

Do 

2,  25,  '79 

5,  6.  '86 
11,     1,  '87  , 

5,     6,  '80  ! 

11,  1,  '87  I 
5,  6,  'S6  ; 
1,  22.  '89  ; 
9,  - ,  87  ' 
9,  -4  '87 
1.  4*  '77 
5,     6.  '86 

11.  1,  '87 
5,  21,  '90 
5,     6,  '86 

11,  1,  '87 
No  date.. 

12,  12,  '89 
7,  5,  '87 
7,    5,  '87 


William  (Iiavi's 

Williaiii  (Irav»'»,  jr 

Brookfi(Id(;able 

do 

A  India  (Jibl)»  (from  certf.). 

do 

do 

do 

\Vm.  K.  (Jockler 

Anna  M.  HaincH 

( 'lias.  ( '.  llaint-s 

do 

do 

From  r»H-tf.613 

J«>s«|)]|(.ue  ('.  Hannnn 

llachel  A.  Haiucs  

11.  M.  II«dbrook 

do 

Jaincs  W.  Howard 

do 

Mrs.  8ii8aii  Y.  Ilihbard 

do 

Edward  Hopkins 

Granvillo  13.  Haines 

^ 


..do. 
..do. 
..do. 

-do. 
..do. 

.do. 
do. 

.do. 

.do. 

.d«. 

-do. 


do. 

do. 

do. 

do. 

do. 

do. 

do. 

Jolin  (). 


Holbrook 


•  A- 


do 

D.  .1.  H«M>j>o.s 

do 

Hrnry  A.  Homirkel... 

(;has.  S.  Hiiicliinan 

Edw.  Irwin 

do 

Henry  Jolinson 

do 

Jo.sliua  K.  Jones 

J.  T.  Jackson 

do 

Beii.j.  F.  Jarret 

Henry  Jones 

Howard  Si)en<'er  Jones. 
do 


*  No  certificate  found  for  1  share. 


No.  of 

Num- 

Total 

1 

certitt- 

ber  of 

each  at 

-  TotaL 

cate. 

shares. 

connt. 

10 
669 

10 
3 

\   >=- 

13 

847 

100 

100 

100 

15 

90 

90 

90 

478 

4 

4 

4 

479 

1 

1 

1 

480 
690 

10 
5 

\    '-^ 

15 

787 
940 

3 
5 

\    « 

8 

891 

20 

20 

1     20 

:;69 

50 

50 

1     50 

482 

20 

\\       25 

i 

773 

5 

1     25 

483 

'     30 

.10 

■     .10 

673 

20 

20 

1     20 

735 

8:{7 

8 
12 

1   20 

1 

'     20 

470 

4 

' 

534 

4 

662 

1 

f   ^^ 

*10 

()86 

1 

974 

5 

5 

5 

484 

50 

50 

i     50 

871 

1    100 

1 

872 
873 

100 
100 

[  301 

301 

*1 

762 

40 

40 

40 

906 

14 

14 

!      14 

226 

5 

> 

1 

488 

5 

S   12 

1     ^^ 

679 

2 

s 

16 
644 

20  [ 

5  i 

\    ^ 

25 

567 
675 

30  , 

6  1 

\       36 

36 

493 

5| 

5 

5 

81 

40  1 

188 

19 

197 

45 

:u)i 

100 

:{2o 

10 

383 

10 

384 

17 

385 

5 

394 

20 

395 
:i96 

100 
100 

V2sn 

1291 

397 

100 

398 

100 

390 

100 

404 

25 

864 

100 

865 

100 

866 

1(H) 

867 

100 

868 

100 

217 

5 

) 

487 

5 

[       15 

15 

680 

5 

S 

490 
674 

20 
5 

\    ^ 

25 

491 

5 

5 

5 

821 

200 

200 

200 

628 
629 

241 

200 

1  .« 

441 

104 

50 

) 

4ft5 

50 

i     125 

125 

681 

25 

s 

w 

894 

15 

15 

15 

494 
737 

40 
10 

[   50 

50 

944 

10 

10 

10 

861 

10 

10 

10 

617 
618 

200 
225 

'  425 

425 

( 


INVESTIGATION   OF   NATIONAL   BANKS.  485 

Stock  outstanding  at  the  cloHimj  of  the  Keystme  National  Bank,  e/c— Coutiuued. 


Date  of 

issue. 


3,  30,  '89 

4,  26.  '90 

5,  26,  '88 

11,  1,  '87 

2,  8,  '88 

12,  21,  '71 

11,  1,  '87 

12.  19.  '90  i 
12.  19,  '9«» 
12,  19,  '90  I 
12.  19,  '90 

5,  6,  '86 

11,  1.  '87 

5,  6,  '86 

11,  1,  '87 

5,  6,  '86 

11,  1,  '87 

5,  4,  '86 

3,  31,  '86 

11,  1,  '87 

4,  23,    89 

I,  15.  '91  j. 
1,  29,  '91  *. 

I,  8,  '91 

I,  24,  '91 

6,  22,  "88 

7,  6.  '87 

8,  15,  '87  |. 

I,  1.5,  '85 
7,  9,  '81 

12,  24,  '85 
12,  24,  '85 

11,  26,  '81 

12,  24,  '85  ;. 
.5,  11,  '82 

II,  10,  '84 
12,  24,  '85 

7,  20,  '82 

12,  13,  '82 

12,  24,  '85 

12,  24,  '85 

12,  24,  '85 

1.  19,  '82 
5,  11.  '82 

II,  21,  '82 

II,  21,  '82 
5,  7,  '85 
5,     7,  '85 

No  date  — 

7,  1,  '89 

8,  6,  '91 

9,  21,  '75 

2,  10,  '89 

10,  6,  'W» 
12,     1,  '90 

5,     0,  "86 

II,  1,  '87 
2,  24.  '79 
5,     6.  '86 

No  date. .. 
.5,     6,  '86 

11,  20.  '90 
5,     6,  '86 

11  1,  'K7 

5,  6.  '80 

11,  1,  '87 
5,  6,  '86 

-      1,     6,   '88 

12,  28,  '81 

10,  15,  '75 

12,  24,  '85 

7,  11.  '8:3 

11,  1,  '87 
1,  24.  '88 
5,  6,  '80 

11,     1,  '87 


Barton  (J.  Le.ster 
John  li.  Love. . . 
Justus  A 
Clias.  McFadden 

do 

Adelaide  McFadden 
David  MelJurney  ... 

E.  E.  McHurney 

Clement  McCune 
Daniel  Me  Arthur 

do 

McP.ride  liros 
,Jos.  R.  McFailden 
W'ni.  MeCau.slaiid 

do 

J  as.  E.  M«('lees,  trustee 

do 

Wm.  M<rrillian 

Mrs.  Emily  D.  Meliek 
Wm.  McMuUen 
James  Mor<ian 
ti,  W.  Marsh 
Mary  J.  Marsh 
Cluis.  T.  Matthews 
do 

B.  S.  Mack 

C.  H.Miller  No.  1 
do 


'  ''i 


H 


iji 


*No  certiticat*;  fouud. 


■'J    . 


4sn 


INVKSTIGAIION    OF    NATIONAL    BANKS. 


Storh  outxlandiuit  at  the  chHiny  of  the  Keifntone  National  Hatik,  <f^?.-—Coutiimed. 


I)jit«'  of 
issue. 


2,  i:{,  '89 

5,  6,  '8(5 

1,  8.  '91 

5,  8,  '86 

11,  10,    84 

5,  6,    86 

1,  8,  '91 
5,  21,  '89 
5,  6.  '86 

2,  26,  79 

3,  :«),  '85 
8,  2.  '89 
5,  7.    86 

11,  1.  "87 

2,  28.    7» 

r>,  6.   '86 

11,  1,   '87 

5,  6,  '86 

7,  9,  '86 

11.  5,  '89 

5,  6,  '86 

11,  1,  '88 

11,  1,  "87 

1,  -,  "90 

2,  n.  '90 

r>,     6,  "86 

11,     1.  '89 

2,  26,  79 
5,     6,  "86 

11,  1,  '87 
1,     8.  '91 

12,  17,  '7;{ 

11,  1,  '87 
5,  20.  "87 

No  date . . . 
No  (late... 

1,  26,    91 

12,  :{,  '90 

3,  26,  90 
3,  26,    90 

12,  23,  '8.5 

11,  1,  87 

7,  9,  '86 

2,  12,  '91 
2,  12.  '91 
2,  28.  JM 
5,  6.  '86 
5,  6 

H».  22 

r>.    6 

11,     1 

IS'o  (liitf. . 

NojlitUv. 
2.  12.  91 
5,     6.  '86 

11.  1.   '8':^ 

12,  1."..  '88 
5,  16.  89 
1.  2r>.    IK) 

11,  24.  90 

8,  15,  '87 
11,  1,  '88 

9,  18,  86 
11,  1.  '87 
!(►.  ir,.  79 

r*,     6,   '86 

11,  1,  '87 
9.     4,  '89 

12.  11.  '8!> 
11,  22.  'm 

10,  7.  '75 

11,  1,  '87 
11,  18,  '80 
11,  1,  '87 

1,  10,  '86 

11,     1.  '87 

9.  29,  '88 


StiM-kluklder. 


C.H.  Miller  No.  2 

J.  Miller 

Thomas   Masaey 

(Jeor^o  II.  Meloiiey 

A.  M.  Moore .' , 

Jacob  M«'yer.<4 

John  Mot)r«! 

'  A.  J.  Morri.Hon 

('.  C.  Newton * 

Chas.   I).  Norton 

1).  P.  S.  Xuhola.s 

do 

S.  F.  Nirdiin^er 

do 

.  Sanfonl  Onieusetter 

do 

' do 

i  Davi<l  Over 

■ do 

i dt» 

I  Joseph  S.  Perot 

; do 


!  Mr«.  Carrie  C.  Pepper . 

do 

do 

Kniily  Penrose 

W.  H.  Pennell 

do 

; do 

I  James  (i.  I*eel 

I  Henry  S.  Paul,  old 

do 


,  Providence  LiFe  and  Trust  Company,  balance  of. 

M .  Tlios  \-  Sons,  attorney.-* 

Newton  K .  Ue/iur 

'  Chas.  Hoe.sch 

^lu^H.^v.  lum 

Harriet  A    Ruddinian 

d<. 

A.  C.  Uisljel .;■ 

do 


'89 

86 


John  liobinson 

(J.  L.  Sonenborn 

<lo 

Mrs.  Marv  A.  K.  Smith  . 

Tlieo.  Steel 

Walter  H.  Snutli 

S.  S.  Swart  ley 

Kstlu-r  A.  Sh'ellenbJTaer , 
do "... 


Dr.  ('.  N.  SIiellenl>er<{t 

do ?. 

do 


tJeo.  W.  Shirley 

do ". .   

IlenrietluH.  Smith 

do 

do 

do 

»l .  K.  Sower 

do 

W .  A  .•  Scarboroniih    

do 

K.state  of  Kichard  St«»kes. 

do 

do 

Seidenbach  &•   Knbiir;; 

Kdw«l.  V.  Smith 

do 

Peter  Stanji 

do...   

( Jeorjie  Stang 

do   ....    

A  uielia  Sharp 

do  . 


A.  L.  Sbinglu. 


515 

9:tg 

.513 
403 
519 
942 
842 
521 
227 
409 
624 
556 
616 
233 
523 
700 
625 
568 
649 
.->79 
7*10 
739 
875 
880 
528 
725 
222 
527 
702 
941 
249 
701 
GU4 
979 
1,  003 
949 
929 
88 1 
887 
421 
72« 
5(MS 
971 
972 
977 
536 
537 
857 
5:19 
7D5 
821* 
«23* 
973 
542 
704 
813 
1(35 
877 
»1U 
626 
749 
578 
716 
28<l 
543 
687 
854 
86U 
»11 
40  I 
715 
438 
714 
434 
712  i 
791  I 


100 

2 

20 

3 

30 

50 

2 

10 

10 

25 

20 

100 

40 

10 


100 
2 

20 
3 
30 
50 
2 
10 
10 
25 

120 
50 


Total. 


j 


H 

1 

12 

20  ^ 

20   . 
10 

50 

1  !> 

6 

10^ 
12   . 

10  i'l 

32 

5  } 
1  i 

50  ;i 

6 

50  1) 

50  > 

25  i) 


5 

10 

3 

175 

11 

10 
100 


10  I 


125 

5 
13 

175 

11 

10 
100 

6 

7 
10 


25  I 

50  ! 

*'*  I 
10 

15  I 

10  U 

2  5 


5U 

50 

5 

10 

15 

12 


20 

■n 

6 
20 

t 
10 

^     ? 
2  S 

10  i 

2  J 

10 

20 

2(»  ) 

12 

'U 

10  } 

40  5 

50  \ 

50  > 
6 

1  J 

100 


} 


< 


20 
12 

43 

8 
12 

50 

12 
15 

50 

100 

7 
100 


100 

2 

20 

3 

30 

50 

2 

10 

10 

25 

120 
50 

12 

50 
6 

32 
6 

125 

5 
13 

175 

U 

19 
100 

6 

7 
10 


50 
.50 
5 
10 
15 

12 


20 
12 

43 

8 
12 

50 

12 
15 

50 

100 

7 
100 


I 


INVESTIGATION    OF   NATIONAL    BANKS.  487 

Stsck  oahtandiuy  at  the  vloHinf,  of  the  Keystone  National  Bank,  cfc.-Contmned. 


Date  of 
issue. 


Stockholder. 


11,     1,  '87 

4,  17,  '89 

5,  6,  '86 

11,  1,  '87 
7,  15,  '90 

10,  28,  00 
10,  28,  '90 

12,  1,  '90 
12,  1,  '90 
12,  1,  '90 
12,     1,  '90 

2,  14,  '90  I 
C,  27,  '90 
1,  25,  '90  ; 
9,  11,  '90  ( 
9,  24.  '90 
9,  24,  '90  ! 

3,  7,  '91 
3,  15.  '86  1 

11,     4,  '87 
5,  21,  '89  ; 
7,  n,  '85  : 
5,     6,  '86 


11, 

4, 

'87 

12, 
3, 

1, 
6, 

';» 

4. 

3, 

'90 

4, 

15, 

'90 

10. 

13, 

'75 

11, 

1, 

'87 

2 

12, 

'91 

•>< 

2, 

'74 

11. 

5, 

'87 

a, 

y, 

'91 

», 

14, 

86 

4, 

14, 

'87 

No 

date... 

10, 

26, 

'87 

9, 

22, 

'88 

9, 

22, 

'88 

9, 

'88 

5. 

1, 

'88 

0, 

29, 

'88 

9, 

29, 

'88 

9. 

2&, 

'88 

9. 

29, 

'88 

5, 

16, 

'89 

6, 

11, 

'89 

6, 

11, 

'80 

«, 

11, 

'89 

10. 

22, 

'89 

10, 

22 

'89 

10. 

•w 

'«9 

11. 

12, 

'89 

1, 

12, 

'89 

12, 

10. 

'89 

4, 

17, 

'89 

Wui.  S.  Tow 

do 

Chas.  C.  Tow 

do 

do 

Amelia  L.  Tobia.son 

Abigail  A.  Tobiason 

K.  G.  Twael,  jr 

do 

do 

Howard  U.  Thomas 

do 

A.  R.  Thomas 

do 

do 

do 

Ralph  V'ogel 

Dan'l  Weaver 

do 

Rebecca  Walker 

Wm.  R.  Warner  <fc  Co 

Mrs.  Sallie  H.  Warner 

do 

Geo.  S.  Wilgus 

...... do  ...-.-...--.---.--•• 

Wm.  Whitesides 

do 

Mefflin  Wheeler 

do 

h.  F.Walten 

Mrs.  E.  O.  I>.  Webb  (old), 
.do. 


No.  of 
certifi- 
cate. 


Num-  ;    Total  ' 

l>er  of  each  ac-    Total. 

shares,  count. 


John  B.  Welsh. 

Hettv  Ware 

H.H".  Yard 


.do. 


do... 

do... 

do... 


do. 

do. 

do. 

do. 


.do. 


do 

do 

do 

......  CIO.  ..-•■--••-»•»• 

do 

ilo 

_..«•.  (lO  ..•••»••••-■■•• 
......  410  ■>>>•> .•■>•>••• 

do 

do 

do 

Mrs.A.T.  Binahur.st. 


727 

831  I 

546 

707 

898 

904 

905 

923  i 

924  1 
925 
928  1 
882  '' 
896  I 
876  i 

900  I 

901  1 

902  I 
980  ' 
455  j 
638  t 
840  I 
419  ! 
.549 
640 
927 
982 
889 
890 

47 
708 
975 
305 
650 
978 
577 
601 
728 
730 
783 
784 
785 
792 
796 
797 
798 
799 
830 
844 
845 
846 
8.58 
a59 
863 
869 
870 
930 
832 


755  I 


26 

5  i 


350 


10 


400 


Total  shares 


15 

5 

25 

10 
10  1 


1,253 


50 


755 
26 

5 

350 

10 
400 


25  1 

25 

13  i 

13 

1 
2  1 
00 

2 

100 

«l 

6 

8! 

8 

Ill 

11 

15 

5 

25 

10 
10 


1,253 


50 


12,720 


ft: 
I 


\i\ 


n 


fi 


*Surreudereil. 


¥1 


488 


INVESTIGATIOX    OF    NATIONAL    BANKS. 


^chnlah'  of  certificaica  of  alod  in  Ihv  Knintonv  XaiionaJ  Jiavh,  rJiilatUlphia  I'a  is 
Hued  lo  John  lluHunialur,  with  utdorHemtnt  on  namt,  as  Hhoan  by  the  boohs  aiul  ,h„ 
cvica  vt riilhaivts. 


Bate  of 


1883. 
July  11 

1H86. 


Mar. 
Mar. 
Mar. 
Mar. 
Mar. 
Feb. 
Feb. 
Ft- 1.. 
Feb. 
Feb. 


3 

3 

3 

3 

3 

lU 

10 

10 

10 

10 


!Namo. 


John  Waiianiaker 


May     31 


John  Wananiafcer. 

do 

do 

do 

ilo 

do 

do 

do 

do 

do 


Nuiii 
ber. 


i  ^nini- 
l>er  of 
Hhares.  I 


Jno.  AVanaiueker. 


380 


445 
446 
447 
448 
449 
450 
451 
452 
453 
454 


G08 


Indorsed  in  bLmk. 


1882. 
600  '  Aug.  25     John  Wananniker. 


200    No  indorsement. 


200    

200    

200  ' 

200    

20«»    

20(»    

2(K)    

20(1    

1887. 
625     May   31 


Do. 
Do. 
Do. 
Do. 
Jolin  Wiuiamaker. 
Do. 
Do. 
Do. 
Do. 


Jobn  Wananinker. 


Analysis  of  stock  surrendered  to  the  bank  ejraminer  by  the  attorney  of  the  e^talt- of  John,  C. 

Lucas. 


No. 


Name. 


Shares, 


617  '  Howard  Spencer  Jones  .' 

618, do ! 

628     Edward  Irwin 

«29    do i 

847  j  Spencer  Ervin I 

851      IJarton  G.  Lester ! 


Kemarks. 


876 
879 
899 

900 
901 
902 
923 
924 
925 
928 
340 


A.  R.  Tbonns I 

Richard  T.  Ca-'bury.. 

-  -  .  ■  •  .  CIO  >--..•••••«••., 

A.  R.  Thomas 

do 

do 

E.  G.  Trasel,  jr 

......  UO 

do'. 

do 

John  C.  Lucas , 


Less  regular  issue. 


Apjjarent  overissue. 


200? 
225i 
241,' 
200^ 

100  ; 

200  \ 

100  i 
200  i 
200 

100 
100 
100 
50 
100) 

looS 
looV 

200 


Out  of  certiflcate  No.  608  for  625  -hares  in  name  of  Jolin 

Wauauiaker,  apparent  overisnue. 
Stub  uiarked  in  corner  "J.  W."     This  stock  has  not  been 

traced  fronj  any  prior  certifi«'ate,  apparent  overivtme. 
Out  of  certificate  No.  632  lor  200  shares  in  liis  name,  apparent 

overiiSKue. 
Out  of  Armstrong  stock  bought  by  Lucas,  certilicate  No.  343, 

regtdar  issue. 
From  certificate  No.  410,  J.  C.  Lucas,  apparent  overissue. 
From  certiHt!ate  No.  342,  J.  C.  Lucas.  re,ftdar  ixgife. 
Balance  of  certilicate  No.  608,  J,  Wanaiiiaker,  apparent  oner- 

ihsue. 
From  certificate  No.  364,  J.  C.  Lucas,  apparent  overigsue. 
From  certificate  No.  341,  J.  C.  Lucas,  reyular  «*•*«<'. 

Do. 
From  certificate  No. 341,  Anna  M. Haines, appetrentoic'nitue. 

From  ^certificates  Nos.  632  and  633,  to  Spen<-er  Ervin,  this 
stock  lias  not  been  traced,  tiiotich  an  aypar^nt  overuuue. 

Out  of  Armstrong  stock,  regular  itme. 


2,516 
800 


1,716 


Copy  0/  the  hstjound  m  Mr.  Marsh's  desk  supposed  to  represent  issues  of  certificates  of 
stock  oj  the  heystone  National  Bank  of  I'hiladctphia,  Pa.,  the  stubs  (if  the  rnliluui" 
0/ stock  book  being  blank  and  the  certif  eaten  missiny. 

No.  1001  to  H.  H.  Y 

1002  toH.  H.  Y .' 

1003  N.  K.  Keger n 

1004  M.  I.  Glass -'- - -^^^'.v.^^^^'.^v.".'.v.v.v.v.".v.^v u 

1005  A.  L.  Kalilmiis jn 

lOOtJ  K.    Kodgers ."'.'.."."**.'.!!!!!; -, 

1007  Commouwealth  'J'itle  and  trust  Couipan  v i o 

lOOS  O.  K.  Crump *      ^ ii\' 

1001)  F.  L.  McArdle , 

1010  Almira  (iibbs ,7, 

1011  C.  N.  Sholleiiherjrer....       ./^ 

1012  Don't  kuoNv 

1013  c. N.  «iieiienbeiger v^'^v^'/.v^v^'////.v^\v^v/^v^v//^\[v^  lo 


INVESTIGATION    OF    NATIONAL    BA'NKS. 


489 


i\ 


The  certificates  Nos.  1004, 1006,  1007, 1009, 1011,  ^nd  1013  acco.npan  led  the  1  ist       hey 
ftre  assiirued  in  blank,  and  appear  to  have  been  used,  probably  as  security  loi  loans 
AU  excfpt  No   1013  aie  dated  1888  and  signed  by  John  C.  Lucas,  president;  the  one 
exception  is  dated  in  1889  and  signed  by  G.  B.  Haines,  president. 

Schedule  of  notes  discounted  for  John  fVanamaker  by  t^^^^Keystone  Nation^ 

adelphia,  Pa.,  and  on  hand  during  the  examination,  from  July  3  to  July  16,  ISM. 


Date  of 
discount. 


1890. 
Mar.    22 
Mar.    22 
Mar. 
Mar. 
Mar. 
Apr. 


Nante. 


June 


July 


24 
24 
24 
12 
14 
15 
17 
18 
19 
18 
19 
20 
21 
23 
5 


Jno.  Wananiaker 

, do 

do 

do 


Date  of 
note. 


1890. 
Mar. 
Mar. 
Mar. 
Mar. 
Mar. 


Time. 


Months. 
4 
4 
4 
4 
4 


Amount. 


Jno.  Wanamaker. 

do 

do 

do 

do —  -•• 

do 


June  17 
June  18 
June  19 
June  20 
June  21 
Demand 


4 
4 
4 
4 
4 


$10,000 
10.000 
10.000 
10.  000 
10,000 
10,000 
10,000 
10,000 
10,000 
10, 000 
10,  000 
10,  (K)0 
10, 000 
10,000 
10.000 
10,000 
40,000 


Due 
date. 


1890. 

July  7 

July  8 

July  9 

July  10 

JnlV  11 

0.-t.  1.') 

Oct.  17 

Oct.  1« 

Oct.  20 

Oct.  21 

Oct.  22 

Oct.  20 

Oct.  21 

Oct.  22 

Oct.  23 

Oct.  24 


Number. 


When 
paid . 


200, 000 


0G8G 

6087 

6609 

6700 

6701) 

17136 

17137 

t7138 

17139 

t7140 

t7141 

7617 

7631 

7054 

769« 

7708 


1890. 
*Apr.     22 

Apr. 

Julv 

Julv 

J  ulv 
tJuly 

Oct. 
tJuly 

Au;r. 

Oct. 

Oct. 
1  Oct. 

Oct. 
'  Oct. 
I  Oct. 

Oct. 


6 
10 
11 
31 
17 
31 

8 
21 
22 
20 
21 
22 
23 
24 


;T£esnot"'fdo''!;o?  appear  on  the  discount  book,  but  only  on  the  credit  ledger  and  daily  tickler. 
The  numbers  are  duplicates  of  others. 
X  Rediscounted  July  31. 

I  learn  that  the  $40,000  demand  loan  is  a  renewal  of  a  loan  of  like  amount  of  March 
10  18%  at  which  tin  e  Mr.  Wanamaker  got  a  $50,000  due-bill,  >.o.  131ob,  and  g^ye 
hi;,  note  for  ^0  000  and  his  check  for  $10,000.  I  learn  that  his  bookkeeper  clam-s  this 
MO  OOO  noL  wa^^^^  November  10,  1890.  It  is  evident  that  that  amount  came  in 
that  darinit^t  cin  not  be  told  by  the  books  from  whence  it  came ;  the  books  simply 

show  that  it  came  in  on  account  of  notes.  i?A/r„».^i, .»  ^^a  9i  '^^^^ 

Mr  Wanamaker's  account  appears  credited  with  the  notes  of  March  22  and  24  a  id 
with'those  oTjune  18  to  23  inclusive,  and  appears  charged  wi  h  the  amounts  ot  hese 
notes  on  their  due  dates.  The  $60,000  in  notes  discounted  in  April  I  do  not  hnd 
credHed  to  his  account,  but  upon  their  due  dates  the  amounts  due  appear  to  be 
charged  to  his  account. 

By  the  Chairman  : 

O  Will  vou  furuish  the  committee  a  list  of  the  certificates  surren- 
dered by  the  represeiitatives  of  the  estate  of  John  Lucas  to  the  hank 
in  1891/aivinff  the  names  of  the  persons  to  whom  they  were  issued,  the 
number  of  shares  of  each,  the  number  of  the  certificates  representing 
such  shares,  and  the  date  of  each  ^certificate ?- A    1  nvi  1 

(The  paper  was  read  in  evidence  and  marked  Exhibit  JSo.  i  ol  tUis 

date.) 


•id 


490 


INVESTIOATION    OF    NATIONAL    BANKS. 

Exhibit  4. 


Schcdnh  of  certificate  of  8tock  of  Key  Hone  National  Bank,  Philadelphia,  Pa.,  turned  Jter 
to  the  hank  examiner  March  2ii,  1891,  hy  the  estate  of  John  C.  Lucas,  auppoaed  to  hare 
been  %n  tht  possemon  of  Mr.  John  Wanamaker,  and  relinquished  by  him  to  the  estate. 


Date  of 


1882. 
Jan.    19 

1887. 
July     5 

July    5 
July     6 

July     6 

1^89. 
June  29 

July     1 

189U. 
Jan.  25 


Name. 


John  C.  Lncaa. 


Howard      Spencer 
Jones. 

-  ■  .do 

Edward  Irwin 


Feb. 

July 

Sept. 

Sept. 

Sept. 

Dee. 

Doc. 

Dec. 

Dec. 


1 

18 
11 
24 
24 

1 

1 

1 

2  t 


...do 

Spencer  Ervin 

Uarton  (J.  Lester  . 
A.  R.  Thomas  .... 


'So. 
ofoer 

tifl- 
cate. 


S 

.a 


Ri 
A. 


£. 


chd.T.  Cadbnry 

do .".. 

K.  Tlioma8 

do 

<!.  Fraael.Jr 

do 

do 

do 


340 

617 

618 
628 

629 

847 

851 

876 


879 
899  ! 
90<)  ; 
901 
902  I 
92:J  ' 
924  I 
925 
928  I 


200 

200 

225 
241 

200 

100 


Date  of 
assign- 
ment. 


1883. 
July  2:{ 

1887. 
July    5 

July    5 
No  date. 

1889. 
June  25 

.July     1 


Indorsed  or  as- 
signed by — 


John  C.  Lucas . 


200     July    2 

I       1890. 
100  I  Jan.  25 


•200 

im 

100 
100 
100 
.50 
100 
100 
100 


Feb.  1 
July  18 
Sept.  11 
Sept.  24 
Sept.  24 
Dee.  2 
Dec.  2 
De«;.  2 
Dec.     3 


Howard      Spencer 

JoiU'S. 

d/» 

Edward  Irwin 

Speugftr  Ei-vin 

Bai-ton  G .  Lester  . . 
A.  R.  Tbomas... 


Signature 

guaruntee<l 

by- 


2516 


Richd.  T.  Cadbnry 

A.  R.  Thoiiiaa!!.. 

do , 

do 

E.  G.Frasel,  jr... 

do , 

.-..do .., 

do 


Erviu  &  To- 
land. 

do 

...do 

...do 

.- -do 

...do 


Spei'ial    . 
memoranda 
on  Htubs. 


.do. 
do. 


.do. 

do. 
.do. 
.do. 

do. 
.do. 
.do. 


Date,  Sept., 
1887. 
Do. 

Account  J. 

Do. 

Account  J. 
W.  J.  C. 
Lncan  ctf. 
i-eturned 
No.  410. 


The  folloAvinj;  nienioraiidimi  is  on  the  back  of  each  certificate: 
This  <ertifu;ale  wan  returued  March  28,  1891,  by  attorney  of  estate  of  John  C. 
Lucas  for  cancellation,  and  receipted  for  to  the  attorney  on  that  date. 

W.  P,  Drew, 
National  Hank  Examiner. 

Q.  Was  there  any  stock  at  any  time  standing  upon  tlie  books  of  tlie 
bank  in  tlie  name  of  John  Wanamaker?— A.  There  have  been  a  great 
many  lain  sac  tions  that  were  on  the  books  of  the  bank  in  the  name  of 
John  Wanamaker,  bnt  at  the  close  of  the  bank  there  seems  to  be  noth- 
ing in  his  name. 

Q.  According  to  yonr  understanding,  was  there  any  Stock  in  which 
Mr.  Wanamaker  had  a  beneticial  interest  standing  in  the  name  of  any 
individual*— A.  1  think  tliere  was,  so  lai-  as  1  have  been  able  to  judge. 

Q.  Can  yon  state  the  names  of  the  i)ersons  holding  any  stock  in  that 
wayf— A.  I  f<mnd  certificates  in  the  name  of  Howard  Spencer  Jones, 
who,  1  have  understood,  rei>resentod  John  Wanamaker.  I  have  bcei. 
nifoimed  that  he  was  a  confidential  man  in  Mr.  Wanamaker's  servi(»i'. 

Q.  Do  yon  know  Mr.  Jone^?— A.  I  do  not. 

Q.  Did  that  stock  remain  in  the  nameof  Jones?— A.  Yes,  sir;  it  is  on 
my  list.    There  were  at  least  425  shares. 

Q.  Was  there  any  stock  standing  in  the  name  of  anybody  else's  bene- 
ficial interest  which  belonged  to  Mr.  Wanamaker!— A.  Not  that  1 
have  been  able  to  thoroughly  trace. 

Q.  Or  any  other  that  is  alleged  to  be?— A.  1  can  not  say  because  I 
have  not  traced. 


INVESTIG.\TION    OF   NATIONAL    BANKS. 


491 


O   From  any  sources  of  information  ?-A.  Not  that  1  have  tound. 

Q  wm  you  state  the  date  of  the  surrender  of  the  last  certificate 
be  d  bv  Mr  Wanamaker  in  his  own  name?-A.  I  found  a  certificate 
^i^^d -Jo  JoinTw^^^^^^  May  31, 1887,  No.  ^08  /o^  6^^^^^^  ^,^- 

1  found  transferred  tc>  Howard  Spencer  Jones  of  J^^^ 
TJ..  r.ir.  *>(M)  sliares-  No.  <)17,  I'OO  shares;  and  No.  olH,  ^J.>  snares. 
%   Wh^be 're  of  certificate  No.  G16,  tamsferred  to  Howan  Spen- 
,ei  Jones?-A.  That  was  transferred  to  liichard  F.  Oadbury,  Jiilj  18, 

'*^  Ai.d  stood  ill  tlie  name  of  Mr.  Oadbury  at  the  time  of  the  failure 

•'*'q"  SJT.t  \":  mnamaker's  list  and  tell  us  when  he  re^eiv^ 
then,  and  wh.-n  he  i.arted  with  them  and  where  they  went  to.-A  The 
«,st  certifieate  tliat  appears  in  his  name  was  issued  July  H,  l?«'i.  ^o. 
'io  teHW  shires.  Tl.ere  is  a  ,,uestio«  as  to  what  became  of  ,t  It  is 
canceled.    The  c.-rtiflcate  itself  is  pasted  in  the  book  as  having  been 

'""rYou  did  not  trace  it  any  further?-A.  No,  sir;  we  could  iind 
nothing  as  to  where  any  other  number  took  its  Place. 
Q.  Take  the  next.— A.  The  next  one  was  issued  Marcli  o,  and  is  jno. 

'""ti  What  be^m;  of  that?-A.  That  was  transferred  February  10  to 
himself  and  became  No.  450.  That  No.  450  became  No.  90.  on  No- 
vl^ld^r  1V890  when  it  was  transferre.1  to  Serving  B.  Dunham,  and  is 

(  ■        "  Q  T  notfcf  «m  have  a  .luestion  mark  Ut  some  of  the  Asures  ?-A 

^ ■        Thai  is  because'  we  coul.l  not'  trace  to  a  prior  -  ^/^^^^^Xi' m  n^ 

There  was  nothing  to  indicate,  and  we  simply  P"!*  *  l^f  *'7  ™*f„,;.,o„ 
Q.  No.  440  is  the  next.-  A.  No.446  was^ issued  March. 5,  l.SS.,,fo.  -00 
shares  That  became  on  November  10  of  the  same  year  No.  451.  Tl.ei  e 
irr»eVuliar  ty  of  some  of  those  original  issues,  as  that  one  is  (hied 
March  :d  vet  one  issued  after  that  is  dated  Pebmary  10.  That 
occms  on  the  books  almost  .•ontinually.    We  can  not  go  by  dates  on 

'"%!  W^at^^^orNo.  451  t-A.  No.  451  has  a  question  mark  atev 
it.     The  books  do  not  show. 

Hy  Mr.  DiCKEUSON:  ,     .    .  ^  a- 

Q  That  was  in  his  naine?-A.  Yes,  sir.  The  ceitihcate  is  pastedm 
the  book      It  is  canceled,  but  as  to  what  became  of  it  L  can  not  tell. 

By  the  Chairman: 

O  The  next  is  No.  447.-A.  No.  447  was  issued  March  3, 1880,  and  be- 
came !no  4.Vj  under  date  oi*  l^\4.ruary  10,  for  200  shares.  That  is  in  tlie 
same  situation  as  the  previous  one.  ,  .         .  ^      i,  ;^ 

i).  What  is  the  next!-A.  The  next  is  No.  448,  «"f.;^"*'^.^ 
18S0,  for  L>00  shares,  and  became  453  on   February  10,  tor  J(K)  shaies. 
That  is  in  the  same  situation. 

By  Mr.  Dickerson: 
Q.  Wliatis  the  purpose  of  transferring  his  own  "ametohis  own  naine 
in  another  number!-A.  That  is  what  we  can  not  find  out.    Iheie  is 
nothing  there  to  show. 
ByMr.  Oate: 
Q.  He  does  not  draw  out  any  money !— A.  No,  sir. 


hi 


«! 


I 


^-~  -J  f^^-nr^i|-^ 


402 


INVESTIGATION   01    NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


493 


#1 


B;^ 


By  Mr.  Dickerson: 

Q.  Are  you  able  to  form  iiDy  opinion  as  to  what  his  purpose  was  in 
chan«»in^' these  numbers f — A.  No,  sir. 

By  the  Chairman  : 

Q.  What  is  the  next?— A.  The  next  is  449,  issued  March  ,3,  for  200 
shares.  That  became,  under  date  of  February  10,  No.  454  for  200  shares. 
That  also  has  a  query  as  to  what  became  of  it. 

Q.  Do  these  canceled  certificates  bear  the  signature  of  iiuybody  as 
to  his  power  to  cancel  them f— A.  8ome  bear  the  signature  of  John 
Wanamaker  and  som(*  do  not. 

Q.  Will  you  kindly  examine  the  certificate  book  and  inform  the  com- 
nuttee  whic^h  of  them  bear  the  signature  of  Mr.  Wanamaker  or  his 
power  of  attorney  on  the  back  of  the  stock  and  which  do  notf— A  I 
will. 

Q.  Will  you  state,  i)lease,  wliether  you  are  able  to  find  anywhere 
any  account  of  what  became  of  the  stock  represented  by  the  certificates 
numbered  451  to  454  inclusive  ?— A.  1  have  not  been  able  to  trace  them. 

Q.  Is  there  any  other  scrip  standing  in  Mr.  Wananuiker\s  name  at 
any  time?— A.  No.  008  was  issued  to  him  Mav  ;U,  1887,  for  625  shares. 
W  e  have  a  query  mark  i»laced  oi)posite  that*  because  we  were  unable 
to  learn  whether  that  was  originally  purchased  or  whether  it  was  trans- 
ferred from  some  previous  stock.  That  became  numbers  016,  617, 4md 
618,  as  I  have  already  testified. 

Q.  Is  there  any  stock  standing  in  the  name  of  Mr.  Marsh?— A.  I 
think  there  is.  U.  W.  Marsh,  50  shares,  we  found  standing  on  the  old 
stock  hnlger  in  his  name.  We.  have  not  been  able  to  identify  any  stub 
for  that,  nor  any  transfers,  and  consequently  we  can  put  no  number  on 
it.     We  found  that  he  had  been  drawing  dividends  for  it. 

Q.  Is  that  the  only  stock  that  stood  in  his  name  ?— A.  That  is  the  only 
thing  we  found. 

Q.  Was  there  any  stock  standing  in  the  name  of  any  member  of  John 
Lucas's  family?— A.  Yes;  J.  Hunter  Lucas. 

Q.  Who  was  he?— A.  He  was  the  son  of  John  C.  He  had  four 
shares  at  the  close  of  the  bank,  two  certificates  of  two  shares  each,  one 
issued  oU  the  9th  of  July,  1881,  and  the  other  issued  on  the  24th  of 
December,  1885. 

Q.  Can  you  tell  for  what  they  were  issued?— A.  They  appear  to  have 
been  transferred  from  some  of  Jno.  C.  Lucas'.  It  does  not  appear  as 
though  they  were  transferred  from  any  one  else.  I  think  as  far  as  our 
examinations  went  tlmt  those  came  from  Mr.  Lucas.  No.  426  was 
transferred  from  No.  417,  which  was  a  certificate  of  John  C.  Lucas. 

Q.  Three  hundred  and  twenty-seven  is  the  other  one?— A.  No.  327 
came  from  No.  276,  which  was  a  certificate  of  John  C.  Lucas. 

Q.  W^as  there  any  other  member  of  the  Lucas  familv  who  had 
slmres?-^A.  Yes,  sir;  3Irs.  M.  E.  Lucas. 

Q.  Who  was  she?— A.  His  wife,  as  1  understood.  She  holds  at  pres- 
ent certificate  No.  422,  issued  December  24,  1885,  for  twenty  shares. 

Q.  Where  did  that  come  from?— A.  That  also  came  from  John  C. 
Lucas,  certificate  No.  417.  W^alter  Kay  Lucas,  his  son,  also  holds  four 
shares,  certificates  Nos.  328  and  427. 

By  Mr.  Dickerson  : 

Q.  Are  the  shares  SI 00  f— A.  They  are  $50.  No.  427  was  transferred 
from  41  <,  which  was  John  C.  Lucas's,  and  No.  328  was  transferred  from 
No.  276,  which  was  also  a  certificate  of  John  C.  Lucas.    Then  there 


is  Miss  Florence  Lucas,  who  was  his  daughter.     She  holds  five  shaies, 

n  certificates  Nos.  359  406,  and  423.     No.  350  for  one  sluire  came,  so 

tr  as  we  could  judge,  from  that  stock  originally  held  in  the  name  ot 

Theophilus  W.  Smaltz.    As  to  No.  406  we  have  been  unable  to  learn 

"^  Q:'v(^r^tl^  consideration  for  it?--A.  We  have  been  unable  tx, 

traee  that.  ,  »     a     m        i       ^ 

Q.  What  was  the  number  of  shares?— A.  Two  shares. 

Bv  the  Chairman: 
Q.  Wiiat  is  the  next  ?— A.  No.  433  came  from  No.  417,  which  belonged 

*^a  wiTis^^^^^^^  one?-A.  Miss  Ethel  Lucas.     That  was  No. 

^^Q  No.424isoutstanding!-A.  Yes.  That  is  for  two  shares  Miss, 
Eth^lLucas,  which  eame  from  No.  417.  Mildred  Luca^s,  two  shares, 
fame  from  No.  417,  and  Granville  H.  Lucas,  two  shares,  also  came  from 

%.^Is  that  all  the  Lucas  holdings !-A.  Yes,  sir;  that  is  all  for  his 

family. 

By  Mr.  Dickerson  : 
Q.  Are  those  sons  and  daughters  of  age?«A.  That  I  do  not  know. 
I  have  never  seen  them. 
By  the  Chairman: 
Q    Those  are  all  dated  December  24,  1885  I—A.  Yes,  sir. 
Q.  Was  Granville  B.  Haines  a  stockholder ?— A.  Yes,  sir. 

By  Mr.  Dickerson  : 
Q   Was  he  a  relative  of  Lucas  ?-A.  No,  sir;  he  was  a  very  mtunate 
friend,  and  was  connected  thrcmghout  with  nearly  the  whole  of  the 
bank's  transactions.    He  held  1,291  shares  at  the  time  ot  the  closing 
of  the  bank. 

By  the  Chairman  : 
Q.  Look  and  see  how  much  his  transfers  amount  to,   and   state 
whether  thev  are  outstanding?— A.  His  transfers  amount  to  1,220 
shares;  he  has  1,291  shares  outstanding.  •     ,       a 

Q    (iive  the  date  of  the  first  stock  which  Mr.  Haynes  acquired.— A. 
Februarv  8,  1876,  certificate  No.  81,  for  40  shares. 
.      Q.  That  is  outstanding?-A.  That  came  from  certificate  No.  112  of 

VStt  thet^^^  one.-A.  The  last  one  is  868,  for  100  shares;  no 
<la^*.    We  c^n  not  find  any  date,  and  there  is  a  question  mark  here  as 

to  where  that  came  from.  .      ,        .-^     i.    xr 

O  Haines,  on  the  15th  of  Noyember,  1889,  received  certificate  No. 
864Vfor  100  shares,  and  that  is  still  outstanding'?— A.  Yes,  sir 

(i.  He  received  certificates  Nos.  865,  866,  867,  and  868  for  the  same 
nmouut? — A.  For  the  same  am(mnt. 

Q  Those  certificates  are  all  outstanding,  and  as  Uy  all  ot  them  you 
say  you  are  unable  to  discover  what  consideration  was  paid  tor  the 
stock!— A.  I  am. 

By  Mr.  Dickerson  : 

Q.  You  do  not  know  where  they  came  from?-A.  We  have  a  pencil 
mark  "J.  C  L.,"  supposing  simply  that  he  got  oOO  shares  from  Luc^s; 
but  there  is  no  absolute  data  by  which  we  can  identify  it  positively. 


•I  f 


m 


U 


494 


INVESTIGATION    OF   NATIONAL    BANKS. 


INVESTIGATION    OF    NATIONAL    BANKS. 


495 


By  the  Chairman: 

Q.  Please  turn  to  oertiflcate  No.  102.  That  was  issued  at  what  date  t— 
A.  February  7,  1879,  for  120  shares,  to  Granville  B.  Haines. 

Q.  It  has  been  issued  in  lieu  of  what  1f— A.  Twenty  shares  of  it  became 
No.  394. 

Q.  On  what  date?— A.  On  April  9,  1884,  100  shares  became  No.  395 
of  the  same  (lat<^;  100  shares  became  39(>,  and  100  shares  397;  100 
shares  39S,  and  100  sliares  399,  of  the  same  date.  That  makes  more 
than  enough,  because  combined  with  this  was  also  numbers  340,  361, 
349,  3(J4,  374,  370,  392,  ami  381. 

Q.  Those  weie certificat-es  which  had  been  issued  ? — A.  Yes,  sir.  No. 
392  came  from  Henry  F.  Lamaers.  He  was  either  a  bookke<^per  or 
salesman  of  Haines's. 

Q.  And  the  other  certificates  which  were  can<;eled,  and  for  which 
these  were  issued  were  held  by  Haines  himself? — A.  Yes,  sir. 

Q.  Turn  to  certificate  No.  320.— A.  No.  320  reads  ^^  Issued  June  20, 
1881,  for  OOS  shares  to  G.  B.  Haines.'' 

Q.  What  bc^came  of  that? — A.  That  was  transferred  to  Joseph  G. 
Ditman,  May  13,  1884,  10  shares,  and  the  same  date  to  John  C.  Luctis, 
No.  401,  (m8  shares. 

Q.  Look  at  certificate  No.  634,  please. — A.  No.  634,  September  23, 
1887,  for  00  shares.  ' 

Q.  What  became  of  that? — A.  I  have  not  been  able  to  dis<*over. 
Q.  Is  it  in  the  book?— A.  The  certificate  is  in  the  book  canceled. 
Q.  Please  look  at  No.  384.— A.  No.  384,  December  7,  188^^,  for  17 
shares.     It  is  outstanding. 
Q.  Does  Mr.  Henry  H.  Yard  appear  as  a  stockholder  of  this  bank?— 

A.  He  does,  to  the  amount  of  1,283  shares. 

Q.  Will  you  please  state  when  his  first  purchase  of  stock  was  nmde? 
According  to  this,  it  is  certificate  No.  594. — A.  The  first  purchase  that 
we  find  is  March  29,  1887,  No.  694,  for  225  shares. 

Q.  What  becauie  of  it ?— A.  To  No.  604,  the  Provident  Life  and  Trust 
Company,  May  20,  1887,  for  225  shares. 

Q.  Does  that  end  the  history  of  that  stock? — A.  Twenty-five  shares 
of  it,  March  0,  1891,  for  Ralph  Vogel,  becomes  No.  980;  March  6,  John 

B.  Love,  25  shares  outstanding,  and  the  balanoe,  175  shares,, we  are 
unable  to  account  for. 

Q.  You  are  unable  to  statt^  what  consideration  the  bank  received  for 
certificate  No.  594? — A.  We  are. 

Q.  Look  at  certificate  No.  600.— A.  No.  600  issued  to  H.  H.  Yard,- 
April  14,  1887,  for  125  shares. 

Q.  What  consideration  was  received  for  that?— A.  We  can  find  noth- 
ing, only  a  notation  of  this  date  "error;"  "returned  same  day,  April 
14, 1887.  See  No.  601.'^  No.  601  reads  "  H.  H.  Yard,  issued  April  14, 
tor  150  shares." 

Q.  What  is  the  consideration  for  No.  586?— A.  No.  586  appears  as  a 
certificate  of  John  C.  Lucas  for  300  shares.  We  are  unable  to  find  any 
consideration  paid  the  bank  fin-  it. 

Q.  Is  No.  (JOl  outstanding? — A.  Yes,  sir. 

Q.  Then  you  have  examined  the  books  to  see  whether  the  bank  re- 
ceived anything  for  that  stock?— A.  We  examined  the  cash  book.  On 
it  we  could  find  no  credit  to  the  stock  account. 

By  Mr.  Dickerson: 

Q.  Then  your  answer  is  that  there  was  no  consideration  ever  paid  to 
the  bank? — A.  Yes,  sirj  not  that  we  can  find. 


'vl 


By  the  Chairman  : 
Q.  Certificate  No.  648?-A.  H.  H.  Yard,  issued  October  21, 188.,  for 

^o'Xv  consideration  paid  for  it?-A.  That  appears  to  come  from 
Vnl^i^^Tt  is  the  stock  o^  W.  H.  Kemble.  That  was  issued  Septem- 
ber' 2Ti87^/L^came1rl  No.  79,  which  was  E.D  Van  Horn,  Janu- 
ar^  6  'l87(i,  ^nd  that  came  from  No.  300  of  the  old  State  bank 

V)  No  782?— A.  No.  782  was  issued  to  H.  H.  Yard  tor  seunreen 
sh4s  August  27,  1888,  and  it  appears  to  come  from  No.  nO,  which 
w  r.  issued^^^^  Alcorn  February  20,  1888,  and  was  transterred  to 

Nos.  a3  78^  a^  and  distributed  with  other  sliares  among  ^os. 
783  784,  and  785,  which  are  (mtstandingm  favor  of  Yard. 

Q   Please  take  No.  806.-A.  No.  800  reads,  "September  20,  188b,  H. 

'V'^i^ -n«ion  did  you  discover  i^r  the  issuance  of  that 

^t"^  l^r^^^t^  S  was  transferred  December  3,  1890, 
to  Charles  W.  Keihl  as  100  shares. 

Bv  Mr.  DiCKEKSON :  . 

O   I  want  to  ask  how  much  stock,  denominated  "overissue,' Mr. 
Wananrato  tJ  altogether^-A   The  tot'^  overissue  ^    he  dose  o 
fh..  hank  was  2  72(>  shares.    Two  thousand  hve  bundled  .mu  sixin  ii 
st  ,res  ve^i^tnnu^^^^^^        bank  examiner  by  theestat»of  J.  C.  Lucas. 
O  •  this  we  ftnd  1,710  shares  apparent  overissue  as  per  ^b^"^e 

O    Do  vou  know  whether  he  held  them  all?— A.  1  do  not  Know. 

O  Do  vou  know  of  any  correspoudence  between  hini  and  Mr.  Drew 
in  reference  to  that?-A  No,  sir;  only  by  hearsay.  I  •''in.ply  heard 
ihat  there  was  some  correspondence,  but  what  it  was  I  do  not  know 

O  T)ovouknowanythii!?n.ore  about  the  transa«tiou  between  Mr. 
W^iamaker  a«d  L  bank  about  that  hypothecated  stock  -A.  I  do 
not  Sw  anything  more  about  it.     I  have  notes  lu  relation  to  it,  and  I 

"oXIoTkUfauything  about  his  hypotbecating  stock  that  wa. 
ca^Ml  an  overissue?-!.  No,  sir;  except  what  I  have  read  m  the  papers 
Thaw^rt  been  able  to  trace  it.    I  learned,  as  others  did,  that  the  stock 
was  hvShecated  for  the  purpose  of  raising  money  to  assist  Mr.  Lucas 
hit  Kaetion  or  deal  iu  keading  Railroad,    ^r.  ^.ucas  msteul  of  pu^ 

^-z=Lrh^ss^^'fraMt^^^^ 

-rnof £  dld^rhold'^iri!"!  rnit^lno'^-  I  think  1  may 

caU^  "JoWanaLke  rs^^^^       and  that  was  an  account  that  repre- 
^nted  these  ^.e^ulations'in  which  John  Wanamaker  and  Lucas  were 

*"o''ThaVwffthe'Weculation  in  the  purchase  of  Reading  stock  f-A 
I  do  Tot  know  exaaiy.    I  simply  understood  there  was  an  ^coun* 
re nresented  there,  and  that  account  I  found  was,  April  11,  l^f  8  oyer^ 
drawn  S493  57.'    I  have  heard  that  Mr.  \anamaker  claimwl  tha^^ 
was  not  informed  of  that  overdraft,  and  when  he  T^f^,^"*^^^^  that  this  ac^ 
c^unt  was  overdrawn  he  got  a  loan  trom  the  bank.    I  found  a  heavy 

'T  'C'rSsecm'elhrirn^-dn  WTai  kind  of  paper?-A.  Some 
of?t  was  hi?o.^Vand"ome  was  the  paper  of  Wanamaker  &  Brown,  a 


' 


496 


INVESTIGATION   OF   NATIONAL   BANKS. 


finn  with  which  he  is  connected.  The  notes  -^ven  ranged  from  $4,500 
up  to  $10,000. 

Q,  Do  you  know  whether  any  of  this  overissued  stock  was  hypothe- 
cated as  collateral  in  anyway  for  that  money? — A.  I  do  not  know. 
There  is  nothing  to  tell  us  positively.  There  are  blank  stubs  with 
the  certificates  gone  in  the  certificate  book,  just  prior  to  May,  1888, 
numbered  774,  775,  776,  777,  but  as  to  No.  777,  there  is  a  pencil  notation 
on  the  stub.  There  is  no  date,  but  simply  "J.  O.  Lucas,  125,"  in  i)encil. 
The  certificate  has  never  turned  up. 

Q.  How  long  was  that  before  he  secured  the  loan  to  make  the  over- 
draft good! — A.  This  overdraft  is  shown  under  date  of  April  11,  1888, 
and  the  blank  stubs  showed  date  Just  prior  to  May  18,  1888. 

Q.  A  little  over  a  month  after? — A.  Just  about  a  month.  Of  course, 
I  can  not  state  just  the  time. 

Q.  This  overdraft  he  made  good,  I  understand,  about  April  11? — A. 
Yes,  sir;  it  was  made  good  shortly  after  that.  I  do  not  remember  the 
date. 

Q.  Is  there  any  other  overdraft  after  that  of  Wanamaker  or  Lucas  ? — 
A.  No,  sir;  nothing  appeared  on  that  account  after  that  date. 

Q.  Can  you  trace  from  the  bank  books  how  Lucas  secured  Wana- 
maker for  the  amount  of  money  he  raised  ? — A.  There  is  nothing  to 
show  that.  There  is  nothing  to  show  any  transaction  between  Lucas 
and  Wanamaker.    Their  checks  are  withdrawn. 

By  Mr.  Henderson,  of  Illinois: 

Q.  Was  it  not  supposcMl  that  this  stock  was  an  overissue,  and  was 
transferred  to  Mr.  Wanamaker? — A.  Yes,  sir.  It  had  been  given  him 
by  Lucas  arbitrarily  to  secure  him  for  his  accommodation. 

Q.  You  don't  know  whether  or  not  Mr.  Wanamaker  knew  it  was  an 
overissue? — A.  No,  sir;  I  do  not. 

Q.  I  understood  you  to  say  awhile  ago  that  there  was  nothing  to  show 
consideration  to  the  bank  for  that  stock? — A.  No,  sir;  the  certificates 
are  out.  As  to  what  the  certificates  Avere  for,  or  to  whom  they  are  due, 
I  do  not  know. 

By  the  Chairman: 

Q.  Have  you  specimens  of  the  form  of  duebill,  as  it  is  called? — A. 
Yes,  sir;  I  have  brought  with  me  a  few  of  the  duebills  which  were 
given  to  John  Bardsley  in  payment  of  interest  on  his  account.  Those 
are  duebills  torn  from  the  back  of  the  book  of  which  no  notation  was 
made  on  the  stubs,  nor  on  tlie  work  of  the  bank.  They  were  handed 
to  him.     He  went  to  the  Third  National  Bank  and  got  the  cash. 

Q.  Will  you  please  furnish  to  the  committee  a  form  of  this  blank,  or 
make  a  coi)y  of  these  same  blanks  which  you  produced  ? — A.  I  will.  If 
there  is  anything  else  any  member  desires  I  will  be  glad  to  furnish  it. 


I 


INVESTIGATION   OF   NATIONAL   BANKS. 

Exhibit  5. 


497 


n  *.;^«  «/  //MP  hhU»  ninrn  to  John  Bardsleu  for  interest  and  bonus  and  paid  him  by  th^ 
^T:^:i,i'KauLfZn^,of^hilMP^L:t,^  ean,e  bein,  calked  iy  tU  Third  KaHonal 
Bank  of  Philadelphia.  ^ 


Clearing  House  Due  Bill. 

Keystone  National  Bank, 

Philadelphia^  April  1, 1890. 

Due  by  Keystone  National  Bank. 

To  banks,  four  thousand  eight  hundred  and  thirty-seven  Uo  dollars. 

This  due  bill  is  only  good  when  signed  by  one  and  countersigned  by 
another  authorized  person,  and  is  payable  only  in  the  exchanges  through 
the  clearing  house  the  day  after  isssue. 

G.  W.  Marsh,  Pt. 


$4,837M 


(Indorsed  in  red  ink:)  First  teller.    Received  payment  Apr.  2-21,  through  the 
clearing  house. 


Number 
14024. 


-> 
M  « 

•^  V 


OS 

..  < 

a 
s 

o 


*fiH 


Clearing  House  Due  Bill. 

Keystone  National  Bank, 

Philadelphia,  May  5,  1S90. 

Due  by  Keystone  National  Bank. 

To  banks,  five  thousand  two  hundred  and  forty-five  i^  dollars. 

This  due  bill  is  only  good  when  signed  by  one  and  countersigned  by 
another  authorized  person,  and  is  payable  only  in  the  exchanges  through 
the  clearing  house  the  day  after  issue, 


$5,245i«,n., 


W.  H.  Thomas, 

Teller, 


(Indorsed  in  red  ink;)   First  teller.     Received  payment  May  6-21,  through  the 
clearing  house. 


Number 
13552. 


00 


■A 

^% 

b£)  . 

P 
I" 

o 


Clearing  House  Due  Bill. 

Keystone  National  Bank, 

Pkiladelphia,  June  4,  1890. 

Due  by  Keystone  National  Bank, 

To  banks,  six  thousand hundred  and  sixty-two  ^,"0  dollars. 

This  due  bill  is  onlv  good  when  signed  by  one  and  countersigned  by 
another  authorized  person,  anil  is  payable  only  m  the  exchanges  through 
the  clearing  house  the  day  after  issue. 


$6,062t\"o. 


G.  W.  Marsh,  Pt. 


(Indorsed  in  red  ink:)  First  teller.    Received  payment  June  5-21,  through  the 
clearing  house. 

3792 32 


\ 


11 


498 


INVESTIGATION   OF    NATIONAL    BANKS. 


Copies  of  due  bills  given  io  John  Bardslet/  for  inten'St  and  honuSy  etc. — Continued. 


Nninber 
14012. 


1^  ^ 

a 
o 


Clearing  House  Duk  Bill. 

Keystone  National  Bank, 

Philadelphia,  July  18,  1890. 

Due  bv  Kovstone  National  Bank. 

To  banks,  five  thousand  nine  hun<lre<l  and  eighty  dollars. 

ThiK  <lnc  bill  i«  only  good  when  siguf^d  by  one  and  countersigned  by 
another  authorized  person,  and  is  payable  only  in  the  exchanges  through 
the  clearing  house  the  day  after  issue. 


.$5,080. 


E.  L.  Maguire, 

TvWer. 


(Indorsed  in  red  ink:)  First  teller. 

The  Chairman.  I  think  yon  may  take  the  examiner's  reports,  or 
reports  of  condition  showing  the  overlending  of  funds  to  individuals. 
That  inchides  Haines,  Wanamaker,  and  one  or  two  more,  and  state  if 
you  can  what  those  loans  were,  and  when  they  were  paid,  if  at  all. — 
A.  There  are  some  overloans  of  Wanamaker  in  1888,  1889,  and  1890, 
at  periods  when  the  bank  examiner  was  there,  and  when  reports  to  the 
Comptroller  were  made. 

By  Mr.  Dickerson  : 
Q.  To  what  amount?— A.  From  185,000  up  to  $200,000. 

By  the  Chairman  : 

Q.  I  wish  you  would  make  up  particularly  one  loan  of  $200,000,  as 
there  is  a  pretty  broad  insinuation  that  that  loan  has  never  been  i)aid. — 
A.  1  will  make  a  careful  examination.  The  dates  are  September  18, 
1888,  April  9,  1889,  October  10,  1889,  and  July  3,  1890,  when  the  bank 
examiner  was  there.  The  other  dates  are  the  reports  of  the  condition 
to  the  Comptroller. 

By  Mr.  Dtckerson: 

Q.  That  was  the  account  of  John  Wanamaker? — A.  Yes,  sir.  These 
I  got  more  parricularly  from  what  is  called  the  credit  ledger  where 
they  keep  posted  any  amount  of  discounts  standing  against  each  indi- 
vidual. 

Q.  Did  the  bank  book  show  any  irregularity  in  the  way  of  conceal- 
ing the  extent  of  loans? — A.  Thebillsdiscfmnted  account isabadly mixed 
account  in  this  way:  I  have  reason  to  believe  that  they  made  a  great 
many  loans  which  they  never  entered  up  in  their  ^^bills  discounted" 
book  at  all,  for  on  their  general  cash  book  I  would  often  find  credits 
of  lulls  disccmnted,  $5,000  or$IO,OOOatatime  witliout  notation  as  to  who 
they  were,  what  the  notes  were,  or  who  got  the  benetit  of  them,  and 
charges  to  the  same  accounts,  without  notation  as  to  who  got  the 
money. 

By  ^Ir.  Dickerson  : 

Q.  Can  you  state  how  he  paid  this  hist  loan  of  $200,000? — A.  They 
simply  stand  marked  as  canceled.  As  to  the  manner  in  which  that 
was  paid,  I  liave  not  traced  it  up. 

Q.  Is  there  any  corresponding  credit  to  the  bank  account  as  cash? — 
A.  W^hen  they  were  paid^  it  went  in  as  cash  through  the  daily  tickler. 


INVESTIGATION    OF   NATIONAL    BANKS. 


499 


Q.  Do  you  know  whether  or  not  Mr.  W^anamaker  knew  what  the 
capital  stock  of  that  bank  was?— A.  I  do  not  know  any  reason  why  he 
should  not  have  known  it.  The  capital  stock  was  $500,000  in  1889 
and  1890.      .  # 

Exhibit  6. 

Schedule  of  interest  and  honus  paid  to  John  Bardsley  by  the  Keystone  National  Bank,  of 
Philadelphia,  as  represented  by  due  hiU\  Aos.  13288,  14024,  13552,  14012. 


Description, 

Amoun'i^s. 

Totals. 

Paid  by  due  bill. 

Date. 

Number. 

Amount. 

1890. 
April  2 
2 
2 

Tnt<^rest  5  per  cen*,  on  $325,000  for  March 

Interest  on  account,  regular,  March 

10  per  cent  on  $2.5,000.(bonus) 

10  npr  cpTit  on  $25  000  (honiis) 

!tj,  337. 14 
S,  000. 00 
•.!,.')00.00 

$4, 837. 14 

5,24*  22 
6,062,52 
5.980,00 

13168 
14024 

$4,837.1 

May     1 

1 
1 

1 
1 

1 
1 

2,  500. 00 

1,  000.  00 

156.  89 

20,83 

25.00 

100.00 

1,  355.  00 

87.50 

Interest  1  day  on  $941.:i50,  April,  6  per  cent. .. 
Interest  5  days  on  $25,000,  April,  6  per  cent... 
Interest  6  days  on  **J5,000,  April,  6  per  cent. . . 
Interest  7  days  on  $75,000,  April,  6  per  cent.  . 
Interest  30  days  on  $:]25,000,  April,  5  per  cent. 
Interest  8  days  on  $75,000,  April.  6  per  cent... 

."i-  9iR.  22 

June    4 

4 
4 
4 

10  per  cent  on  $25,000  (bonus)  May 

Tilt Arpfif  t\x\  nppoiiTit,  for  IVf av  ..    ............... 

2,  500. 00 
i     1,000,00 
!     1,400.00 
\    1, 162. 50 

1 

Interest  31  days  on  $325,000,  May,  5  per  cent  .. 
Interest  31  days  on  $225,000,  May,  6  per  cent 

Interest  30  days  on  $225,000,  June,  6  per  cent. 
Tiit^Ti^fit  rtii  M4'<'*niiTit.  for tTn Tift 

13552  ;      6,062.50 

July  18 
18 
18 
18 

1, 125. 00 
1, 000.  00 
1,  355. 00 
2.500.00 

Interest  30  days  on  $325,000,  June,  5  per  cent. 
10  per  cent  on  $25  000  (bonus)  June 

! 
14012  '      .5.980.00 

22, 124. 86 

22.124.66 

The  stubs  of  the  above  due  bills  appear  as  follows: 

Number  \'i'l%^  in  rejiular  place,  but  stub  blank. 

Number  14024  torn  from  the  back  of  the  book  and  stub  blank. 

Number  13552  in  regular  place,  but  stub  blank. 

Number  14012  torn  from  the  back  of  the  book  and  stub  blank. 

At  this  point  the  committee  adjourned. 


I 


January  6,  1893. 

The  Committee  on  Banking  and  Cnrrency  met  this  day,  the  following 
members  being  present: 

Mr.  Bacon  (chairman),  and  Messrs.  Henderson  of  Illinois,  Townsend, 
Cox,  Brosius,  Dickerson,  Cate,  Walker,  and  Cobb. 

TESTIMONY  OF  WILLIAM  P.  DREW. 

William  P.  Drew  was  sworn,  and  testified  as  follows: 

By  the  Chairman  : 

Q.  Mr.  Drew,  yon  were  formerly  bank  examiner  inider  the  Comj)- 
troller  of  the  Currency! — A.  I  was. 

Q.  And  are  you  the  gentleman  referred  to  in  the  testimony  taken 
before  this  committee  as  William  P.  Drew,  national  bank  examiner  !-i- 
A.  I  presume  so.     I  did  not  see  the  testimony. 

Q,  You  took  charge  of  the  Keystone  National  Bank  after  its  failure, 
under  the  order  of  the  Comptroller? — A.  Yes,  sir. 

Q.  You  are  here,  Mr.  Drew,  in  comi>liance  with  your  own  request! — 
A.  Yes,  sir. 

Q.  You  may  proceed  and  nuike  any  statement  yon  desire  to  make. — 
A.  Ever  since  this  trouble  occurred,  which  worked  so  much  to  my  in- 
jury, I  have  endeavored  to  secure  an  intelligent  and  candid  examina 
tion  or  investigation  by  the  Department.  In  that  J  have  been  actively 
supported  by  the  clearing-house  association  of  Philadelphia,  and  up 
to  this  time,  as  that  has  not  been  accorded  to  me,  I  would  like,  if  you 
have  time — for  this  is  the  first  opportunity  for  a  year  and  a  half  that  I 
have  had  to  say  a  word  for  myself  before  a  competent  tribunal — I  would 
like  to  make  a  statement,  narrating  in  brief  the  salient  features  of  the 
difficulty,  and  the  history  of  my  connection  with  the  bank  and  the  bank 
itself;  and  after  I  shall  have  finished,  I  shall  be  very  glad  to  bfe  cross 
questioned  or  examined  in  any  way  upon  any  points  developed  by  my 
statement  or  that  suggest  themselves  to  any  member  of  the  commit- 
tee during  this  examination.  This  may  take  some  little  time,  but,  under 
the  circumstances,  I  think  Avhen  it  is  concluded  you  will  say  that  the 
information  that  will  be  given  by  me  will  be  of  importance  to  this  com- 
mittee, and  will  not  in  any  way  impede  the  legitimate  and  true  ends  of 
this  investigation. 

Q.  Are  you  prepared  at  this  time  to  make  such  a  statement? — A. 

I  am. 

The  Chairman.  I  suppose,  gentlemen,  that  is  the  purpose  for  which 
Mr.  Drew  is  here.  I  see  no  objection  to  it,  unless  there  be  objection 
from  some  member  of  the  committee. 

(No  member  of  the  committee  objecting,  Mr.  Drew  proceeded  as 
follows:) 

Mr.  Drew.  The  Keystone  Bank  was  converted  into  a  national  bank, 

in  1873,  from  a  State  bank  that  had  borne  an  unsavory  reputation.    It 

was  chartered  prior  to  this  examination  by  the  examiner.      After  its 

being  chartered  the  examiner  made  an  examination  or  investigation  oi 

(500^ 


INVESTIGATION   OF    NATIONAL    BANKS. 


501 


the  bank,  and  found  that  one  fourth  of  its  capital  was  impaired  by 
reason  of  $50,000  of  real  estate  mortgages  held  from  the  old  organiza- 
tion The  examiner  recommended  to  the  Comptroller  that  notice  be 
given  to  the  bank  to  convert  the  $50,000  mortgaged  assets  into  cash 
within  the  next  six  months. 

By  Mr.  Dickerson  : 
Q.  Wait  a  moment,  Mr.  Drew.     When  you  say  the  examiner,  do  you 
mean  yourself?— A.  1  do;  I  mean  myself.  ,  ^.    ^ 

The'CHAiKMAN.  Let  me  make  a  suggestion:  Where  you  speak  that 

way,  say  I,  as  examiner.  .^   ,  ^,     r     ^        /•  ^     4.1 

The  Witness.  The  Comptroller  so  notified  the  bank,  and  for  three 
successive  periods  of  six  mouths  each  the  bank  was  suffered  to  con- 
tinue this  irregular  asset.  1  then  recommended  the  Comptroller  to 
close  the  ba  k  unless  within  the  next  six  months  that  asset  should  be 
converted  into  cash.    He  so  notified  the  bank.    Just  before  the  expira- 


bank.  Its  first  president  under  the  national  system,  now  dead,  Wil 
liam  Armstrong,  was  a  city  contractor;  and  the  bank  was  not  only 
reported  by  the  examiner,  but  was  recognized  by  the  clearing-house 
association,  as  being  in  a  very  unsatisfactory  condition,  although 
believed  to  be  practicallv  sound,  and  admission  to  the  clearing-house 
association  for  these  reasons  was  refused  for  some  years.  The  general 
tenor  of  my  reports  of  the  Keystone  National  Bank  exhibit  clearly  a 
dissatisfaction  with  its  condition  on  my  part,  as  well  as  on  the  part  of 
the  clearing  house  committee;  and  the  reports  on  file  in  the  office  of 
the  Comptroller  of  the  Currency,  almost  without  exception,  bear  out 
this  statement.  In  1880,  five  years  before  the  collapse  of  the  bank, 
John  C.  Lucas  commenced  large  real  estate  operations  at  Spring  Lake 
and  Sea  Girt,  N.  J.,  and  soon  after  the  construction  of  a  banking 
building  011  the  old  site  of  the  bank.  He  had  sold  the  bank  building 
prior  to  that  tim?  and  had  repurchased  it  personally  for  $205,000.  It 
was  an  old  building,  practically  worthless,  and  the  value  of  the  prop- 
erty consisted  in  the  lot  directly  opposite  the  mint  and  on  the  corner 
of  the  street,  30  feet  fronting  on  (3hestnut  street  by  240  feet,  running 
to  Sansom  street.  Knowing  these  fjicts,  particular  care  was  taken  to 
ascertain  whether  any  accommodations  were  given  to  Mr.  Lucas  for 
the  purpose  of  these  enterprises,  and  directly  and  indirectly  something 
like  $100,000  was  found  to  be  in  the  bank  for  Mr.  Lucas.  These  facts 
were  all  reported  to  the  Comptroller  of  the  Currency. 

By  Mr.  Walker  : 
Q  Who  was  the  Comptroller  at  this  time?— A.  Mr.  Knox.  During 
this  period  Mr.  Knox  visited  the  bank  himself  at  my  request,  looked 
over  the  accounts  of  the  bank,  and  endeavored  by  advice  and  sugges- 
tion to  prevent  the  bank  from  embarking  to  any  dangerous  extent  in 
any  of  these  operations. 

By  Mr.  Brosius  : 
Q  Is  Mr.  Knox,  who  was  Comptroller  at  that  time,  now  living!— A. 
No  sir  So,  from  year  to  year  the  bank  was  reported  as  in  an  unsatis- 
factory condition,  and  was  not  only  so  regarded  by  the  clearmg-house 
committee,  but  bv  every  bank  in  the  association,  some  of  which  banks 
svstematically  retused  the  bank\s  duebills.  July  3, 1800,  at  a  regular 
examination  made  by  me,  a  loan  of  $2(M),000,  surreptitiously  made  by 


502 


IN^  E<^  rirjATioN  of  national  banks. 


15'    '^ 


the  then  president,  O.  W.  Marsh,  and  not  carried  on  tlie  books  of  the 
bank  nor  communicated  to  tlie  directors  of  the  bank,  was  discovered  by 
me  and  very  severely  <;ommented  ui)on  in  my  report  to  the  Comptroller 
as  well  as  to  the  manager  and  directors  of  the  bank,  and  an  effort  was 
made  by  me  to  so<  ure  an  immediate  return  of  that  money,  inasmuch  as 
the  bank  was  absolutely  flat  cm  its  back  and  needed  every  one  of  its 
legitimate  resources  to  continue  its  life  with  the  clearing  house. 

By  Mr.  Walker: 

Q.  Is  that  a  matter  of  record!— A.  It  is  a  matter  of  record.  That 
was  repented  to  the  Comi)troller  of  the  Currency,  and  there  my  responsi- 
bility ceased. 

Q.  Who  was  then  Comptroller? — A.  Mr.  Lacey. 

By  Mr.  Townsend: 
Q.  When  was  it  re]>orted  ?— A.  On  the  10th  of  July. 

By  Mr.  Walker; 

Q.  Howlon«>  afterwards  wasitthatthebank suspended i — A.  Thebank 
suspended  in  March  foUowing  (1891).  What  action  the  Comi»troller  took 
is  on  record.  A  very  particular  examination  was  made  at  that  time  in 
regard  to  the  liabilities  of  the  bank  as  shown  upon  the  individual 
ledgers,  a  work  involving  protra<ted  labor.  My  assistant,  Mr.  H.  C. 
Jones,  was  put  in  charge  of  that  woik  in  c<M)peration  with  the  book- 
keepers and  cashier.  All  accounts  as  they  stood  on  theb<M>ks  of  thebank, 
some  1,G00  in  number,  were  carefully  and  minutely  added,  both  <lebit 
and  credit,  and  the  resulting  differences  set  down  in  a  list  with  the 
names  of  the  dei)ositors.  In  addition  to  that,  orders  were  given  by  me 
to  the  cashier  of  the  bank  to  have  the  results  thus  obtained  transferred 
into  a  permanent  form  upon  separate  balance  books  answering  to  each 
ledger,  in  order  that  that  date  at  least  might  be  taken  as  a  point  ot 
departure  when  the  accounts  seem  to  be  shown  upon  the  books  faithfully 
and  truly.  To  this  end  the  books  of  Mr.  Jones  containing  these  results 
were  given  to  the  cashier  of  the  bank,  with  the  knowledge  of  the  pres- 
ident and  the  directors,  to  have  the  same  transferred  into  the  books  of 
permanent  record,  referred  to  above.  This  was  never  done,  and  the 
three  lK)oks  containing  these  results  have  disappeared.  At  this  time 
a  difference  against  the  bank  of  $180,000  was  found  to  exist. 

By  Mr.  Cox : 

Q.  Will  you  pardon  me  for  interrupting  youf  When  you  stated 
three  books  and  gave  us  a  description  of  them,  I  want  to  ask  whether 
the  fact  of  their  disappearance  was  ever  communicated  to  the  Comp- 
troller of  the  Currency  before  he  closed  the  bank  I— A.  1  do  not  think  it 
was,  for  I  did  not  know  it  then. 

Q.  At  what  stage  in  the  proceedings  did  you  ask  why  those  books 
had  disappeared  ?— A.  When  1  tried  to  get  them  for  my  evidence  here. 

By  Mr.  Cobb  : 

Q.  Were  those  books  turned  over  to  you  when  you  took  possession 
of  the  bank  f— A.  No,  sir;  1  could  not  find  them. 

By  Mr.  Cox: 

Q.  Did  you  ever  learn  the  fact  that  they  had  not  been  transcribed 
into  the  other  books  for  permanent  use?— A.  No,  sir j  not  fully  until 
we  came  to  examine  the  bank  in  the  next  six  months. 

Q.  Did  you  give  yourself  any  trouble  to  ascertain  the  fact  whether 
or  not  they  had  been  transcribed  into  the  permanent  records?— A.  I 


INVESTIGATION   OF    NATIONAL   BANKS. 


503 


o-^ve  Mr  Jones  direction  of  that,  and  he  is  the  only  one  that  would  be 
v^Im  ons  i>le  for  it   and  probably  he  (tould  answer  that  question  bett^^ 
thri        cafnot'say  ^^^^^^^  I  dicf.    1  was  in  the  bank  very  often.    Now 
have  St  it^^^  a  difference  of  $180,000  was  found  t^^^t  .xppea^^^^^^^^ 

the  fir^t  oroof  of  the  ledgers.     It  was  subsequently  reAluced  by  the  dis- 
ove^v  oTms  and  mistakes  to  $11,0(M);  that  ^H^^OO  ^^.^fterence  was 
directed  to  be  placed  in  a  suspense  account  by  ine,  and  dividends  to  be 
Pld  until  it  was  discovered  or  the  amount  should  be  charged  to  pr(  fit 
d  losl'as  i;;:cove^^^^^^^     I  am  particular  about  th^^^^^^^ 
niiiMP  1  fear  I  have  been  niisrepresented  m  tins  niattei.    .laiinai.v  .">, 
1S91  at  2  oVlock  in  the  atternoon,  1   went  with  my  assistant  to  the 
Kevstone  National  Bank  fort 

tion  The  cash  of  the  bank  was  thoroughly  counted.  I  say  "wi'f  8'''y 
Znte.1  I  neai.  every  dollar  of  it  was  counted ;  no  pm^kages  were 
t  en  as  possessing  moVy,  aud  that  has  been  my  «"rf«™  P^j^^^'^^,,,^* 
wiis  found  to  a<>ree  with  the  general  ledger  cash.  I  then  leK  t  e  pauE, 
Xr  nothig  from  the  general  ledger  what  the  assets  and  liabilities  o) 
tie  la  ,k  Zght  to  be  on  close  of  business  that  night,  mtending  to  verify 
tlM-ni  in  detail  the  next  morning.  In  the  evening  ot  that  day  Mr. 
C  arles  McFadden,  a  director,  owning  700  f  aie«  of  stock  a  wealtl^ 
railroad  contractor,  came  to  me  at  the  Coutmental  Hotel  and  t«ld  me 
that  President  Marsh  had  been  to  his  house  after  I  had  lett  the  DaiiK 
that  afteriiwn  and  had  said  that  there  was  a  suppressed  mdebtedness 
,f  thelate  Presllent  Lucas  of  some  1600,000,  stating  to  Mr.McFadde 
tl,;}  the  examiner  was  at  the  bank  and  he  woald  not  conceal  it  any 
onL^  MmmedLtelv,  to  the  best  of  my  memory,  that  evening  noti- 
fied the  Comptroller  of  the  Currency.    The  next  morning 

ByMr.  Beosius: 
Q   By  what  means  did  you  notify  him!-A.  By  a  letter.    The  next 
mmning  1  went  to  the  bank  and  pursued  the  usual  exaiu.uat  on     The 
rSs  were  present,  and  shortly  aftei-the  precise  day  1  can  not 
"Ive-l  intbrmed  the  clearinghouse  <!ommittee  of  these  taets. 

By  Mr. Walker:  ,  ..       .      ^-^ 

O  Have  vou  taken  any  pains  to  learn  whether  that  letter  of  notifi- 
caUon  ^8^17^^^  He  says  he  has 
never  received  it. 

By  Mr.  Brosius: 
Q.  Did  you  keep  a  copy  of  that  letter  ?-A.  Ko,  sir ;  I  did  not,  and  if 
t  would  not  have  been  proof  that  he  received  it. 

By  Mr.  Dickerson:  «     a    xr       •     t 

Q.  You  did  not  wire  him  in  reference  to  that  at  aln— A.  JNo,  sir;  i 
did  not  wire  him. 

ByMr.  Brosius  :  .    . 

O  May  I  inquire,  in  that  connection,  whether  or  not  i^^B  your  habit, 
at  leaf t  was  it  your'  habit,  during  the  time  that  you  held  the  office  of 
7J!onAti}.lx'Mmuev,  to  keep  copies  of  your  correspondence  ?-A. 

"^O^'Tn  relation  to  banks,  with  the  Comptroller  of  the  Currency  f—A. 
No^sir     My^^^^^^^^^^  Comptroller's  office  had  been  so  long 

and  so  intimate  that  I  never  conceived  that  the  occasion  ^vouM^^^^^^^ 
when  I  could  not  have  access  to  my  own  papers  m  the  <^omptiollei  s 
Office,  and  ihat  is  one  reason  why  I  did  not  keep  copies^  ,tt\'4ir^^^^^^^^ 
son  is  it  would  have  required  an  expense  which  I  could  not  tn  ell  meet, 
and  I  did  n^^^^  see  any  necessity  for  it.    I  regret  it  now,  of  course. 


[^ 


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If 


004 


INVESTIGATION   OF   NATIONAL    BANKS. 


I 

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By  Mr.  Walker  : 

Q.  Were  you  denied  access  to  the  papers  you  had  sent  there? — A.  I 
was  to  my  reports.  I  wanted  to  be  somewhat  armed  against  the  at- 
tacks made  on  me  by  the  committee  of  the  city  council  of  Philadelphia. 

By  the  Chairman  : 

Q.  Your  reports? — A.  My  reports  and 

By  Mr.  Cox : 

Q.  What  reason  was  assigned  that  they  were  not  furnished? — A. 
They  were  confidential.  I  made  the  request  when  I  was  bank  exam- 
iner. The  answer  was  that  they  were  confidential.  Of  course  they 
were  confidential. 

Q.  When  was  the  clearing-house  committee  made  aware  of  the  in- 
debtedness of  the  Lucas  estate f— A.  Early  in  January,  1891.  At  my 
interview  with  them  they  concluded  that  the  Lucas  estate  was  proba- 
bly good  for  $000,000,  and  that  therefore  the  bank  should  not  close 
and  an  effort  would  be  made  to  rehabilitate  it.  The  Lucas  estate  con- 
sisted then  of  this  large  bank  building 

By  Mr.  Henderson  : 

Q.  Mr.  Drew,  who  suggested  that  effort  to  rehabilitate  the  bank?— 
A.  1  went  to  the  clearing-house  committee  and  made  my  statement, 
and  said,  "Gentlemen,  1^11  close  that  bank  in  twenty  minutes  if  you  say 

By  Mr.  Walker  : 

Q.  It  was  a  clearing-house  committee,  then,  that  proposed  to  rehabil 
itate  the  bank? — A.  We  all  agreed  it  was  a  good  thing  to  attempt.  I 
was  about  to  say  why.  As  appearances  then  indicated  the  Lucas 
estate  seemed  to  be  wortli  $600,000.  The  equity  in  the  bank  building 
was  $225,000.  The  building  has  since  been  sold  for  $400,000.  There 
was  one  tract  of  land  at  Sea  Girt,  350  acres— the  old  Commo<iore 
Stockton  farm;  an  offer  had  been  made  for  it  a  year  before  of  $350,0(KK 
In  addition  to  that  there  was  a  tract  of  47  acres  adjoining  the  station 
at  Sea  Girt  probably  worth,  prospectively,  $10,000,  a  low  value;  a  trac^t 
directly  on  the  seashore,  with  full  vegetation  iiinning  from  the  beach 
house  at  Sea  Girt  more  than  a  quarter  of  a  mile  and  116  rods  wide, 
which,  speculatively  at  least,  would  be  worth  a  considerable  sum.  In 
addition  to  that,  a  tract  just  below  had  then  been  sold  to  the  State  of 
:New  Jersey  for  $60,000. 

Q.  How*  many  acres?— A.  1  don't  know,  sirj  I  think  100;  $60,000 
for  a  State  camp  ground,  and  the  money  for  that  was  to  come  to  the 
bank.  In  addition  to  that,  other  Sea  Girt  and  Spring  Lake  property 
comprised  nearly  1,000  honse  lots,  the  prices  running  from  $200  to 
$1,200  apiece.  This  whole  statement  as  I  have  given  it  to  you,  together 
with  the  maps  of  the  property  and  the  surveyors'  marks,  was  sent  for 
his  information  to  the  Comptroller  of  the  Cuirency.  The  committee, 
knowing  of  this  property,  advise<l  that  the  bank  be  not  closed. 

By  Mr.  Dickerson  : 

Q.  Let  me  interrupt  you.    Was  the  offer  of  $300,000 

The  Witness.  $350,000. 

Mr.  DiOKERSON  (continuing).  Bona  tide  or  not?— A.  It  was  an  offer 
made,  as  I  understood  from  him,  by  the  late  Charles  J.  Hanah. 

Q.  You  regarded  it  then  as  bona  fide!— A.  I  did.  It  was  also 
advised  by  the  c^pariiig-house  committee,  and  concurred  in  by  myself 
and  reported  to  the  Comptroller  of  the  Currency,  that  the  trouble  at  the 


INVESTIGATION    OF    NAT^TOXAL    BANKS. 


50r 


KeystoneBankbenotnn.depul>li<-     W^^ 

run  upon  f-^^%^%^J^''r^^^  ap- 

from  the  shadow  of  the  ^^^^J"^^  P^'"' *  ^.^^        „iven  t^  the  public  m 
prehended  that  any  ^^^P^^^^^^,^  .^^^^  upon  other 

^!!rdir^rs:^^e^^ 

Taf^^^lC^on  ^^^J^tS^^^  Lucas's  debt 
There  were  produced  by  Mr.  ^^ish  a^  evm^"^^  $600,000, 

certain  memorandum  ^^^!^^/^  J^™^\^^^^  turned 

and  an  effort  was  immediately  ^f^f  .^^J^^^^^^^^^  keeping  the  mat- 

over  to  the  bank  for  that  debt,    ^^^^^'^^/f^f  Lucas  cheeks  as  true 

?er  qniet  was  ff-X^to^^^^^^^^^^^^  t^'stat™^^^^^ 

evidences  of  debt  in  law,  t^JSewi^  w^i."  i'  property  over, 

senting  the  Lucas  estate,  who  ^"^. '''^  "« .^Ja  flght  the  bank  with 
that  if  the  matter  ^as  made  public  tie>woum^^^  keeping  the 

%"he  examination  of  the  bauk  was  :^--nly^^„^^^^^^^^ 

to  avoid  publicity,  and  n?'^' jfc^'if  «;^^>  or  va  UUty,  and  had  to  be 

under  the  gravest  s'^^P^f'""  "^,*^,5f  Kl!'tlCe^  I'is  assist- 

independently  examined  fd  proved  b>  t'^^  «^^"^j,.^  statement  of  the 
ants!    Thus  some  tAvo  weeks  had  pi^^^wm  examiner,  was 

actual  condition  of  tbe  l)auk,  which  wo  Id  satis^^^^^^ 
made.    On  the  25th  <'t  January,  IbOl,  it  beiug  bunuay,  ^^  j^^ 

ohtained  al>oj^"ld'<^«*[d  I  made  ^^^^^^  f./thlletter  of  transmit- 

;:rSnaSs  Cs^^f  of  ^a  SS  "Of  the  condition  of  the  bank. 

n.i8sion,at  n.y  request  visited  the  bank  on  teon^^^^^  ^^^^.^ 

statement  ot  the  »ank,  mcludu  g  t  e  ^^^™  f^^^^^uary  I  forwarded 
away  a  memorandum  of  it.  '^S'"'  ' ''";"' \„u8e  loan ;  again,  on  the  26th 
him  a  full  report,  containing  *''«  ^l;;*y"f:!^°'^,^tv^^^^^^^  loan, 

of  Febrnary  another  «««?P^,^^f,  ;^P°\'-i^^^t*r^'^^  foct Tat  hi  praetically 
1  thiuk  I  have  a  right  t^/Jf '""'/*.  .^:^*,",,o.nission  ..f  an  item  in  a 
.lischarged  me  on  July  f  *"[ ^''^^nse  Tn^  •<  t   neither  intended  nor 

different  times  in  the  interim. 

Q.  Y^j/mea?tre  matter  which  you  were  charged  with  -f  »gt_ 
A.  t.M»k  it  off  a  statement  wl.u-h  I  '";^'  ^jfj^l'^.S  dW  it  cm- 
Strict  ^::lf^^t^^^'^^^^  -  -  ^-  - 

ollection. 

mv  best  recollection.    I    ave  not  s/^^"  ^"*^  intpnded  t^.  showf— A.  The 


iJI^^ 


/) 


50fi 


INVESTIGATION    OF    NATIONAL    BANKS. 


i4. 


f>.?'  *'«"l<\ifc  result  m  anythino-  tbat  is  wortli  mg^estiug  unless 

there  was  some  hint  as  tx)  the  total  assets  and  total  liabilities f_A 
Well,  It  didn't  amount  to  much,  except  it  showed  that  the  clearing 
house  were  aware  of  the  condition  of  affairs,  and  we  were  trying-  to  Jt 

!i^s  ab?)ut''all  oflf  ""''"^  ^^^  *^^  "'''''^^^  ^^"""^  ^^^  ^^''"^'  ^'^^*^  ^^'^^ 
I  did  not  know  that  the  clearing-house  loan  was  not  on  the  sheet 
or  hve  months.  Some  banks  do  not  carry  that  item  on  their  genera 
ledger  sheets,  but  keep  books  of  it.  It  was  a  purely  accidental  oniKssion 
1  was  not  aware  of  it  for  five  months.  I  'supposed  it  w^t^oTthZ'. 
btill,  it  did  not  affect  the  case  at  allj  he  would  not  likely  have  closed 
the  bank  on  a  preliminary  statement  of  the  bank  examiner,  against  the 
express  wishes  of  the  clearing-house  associaton.  '  ^ 

By  the  Chairman  : 

Q.  Dicl  you  suppose  all  those  securities,  which  you  say  would  have 
Sf^'^A  *  i^^  ^learing^liouse  loan,  were  included  in  the  preliminarv  re- 
poit?--A.  No,  sir;  or  I  would  have  been  minus  on  mv  statement   ' 

(^.  Your  account  would  not  have  balanced,  then,  {f  you  had  put  on 

By  Mr.  Walkee  : 

Q.  Did  this  rough  statement  that  you  say  did  not  deserve  the  state- 
ment of  a  i-.'^Port  show  practically  what  the  final  report  showed,  or  ap- 
proximate it  t-A  Oh,  no,  because  it  did  not  show  the  dearing.liouie 
loan  nor  the  liability  of  the  Lucas  estate,  which  was  then  under  ne«^ 
tiation.    We  had  not  gotten  it.  ^ 

By  Mr.  Beosius  : 

Q.  Mr  Drew,  niay  I  ask  you  to  make  one  matter  a  little  clearer 
Yon  say  that  the  fiiilure  to  put  that  item  in  that  preliminary  statement 
was  a  mere  omission.  Was  it  an  intentional  or  an  unintentional  mn  s 
™<{"7:  •  ^^  '•"^  unintentional.  I  did  not  know  it  till  attention  was 
ffii  on'iitWngT?"    '  *^*"''^*'d«-    What  possibleobject could  1  have 

By  Mr.  Diokerson  : 

Q.  Comptroller  Lacey  told  you  he  did  not  receive  one  of  the  let- 
ters?— A.  No,  sir. 

nmn^T'^l  *^^*  letter  ever  returned  to  you?  Is  it  in  the  Dead  Letter 
(ithce?— A.  No,  not  that  one. 

^.%^'^^J^  ^}'f'^^i^yo^;^ite  th^t  letterf-A.  The  first  letter  from 
the  Continental  Hotel,  and  the  others  in  the  bank 

of^i.P^hilT  T'V^J'T  ^^^?/^^  J  ^'^  y^^  ^'''^^  a°y  ^^  ^^^  officials 
ot  the  bank?— A.  I  did  myself,  and  marked  them  *^ private ^Und  did 

iw,r  T^-""  /"  '^'^  official  envelope;  did  not  want  the  clerks  to  get 
them  This  cleiiring-house  loan  was  made  originally  in  December  one 
month  before,  $730,000,  and  communicated  immediately  and  fuHy  to 

^t'^oSS  f'  i''  f  '^"  ?''^""^-  "  ^^  '^'^  "^  °^onth  ago  you  had 
$^30,000  in  the  clearing  house,  now  you  have  not  anv  in  the  clearing 
house-how  does  that  happen,''  he  would  see  something  wrong.    Manf 

int'  ^-^^f  ^  ^?.^  ?^"*'  ^^  ^'^  "^^"^«^'  ^M^-  ^^e/a  li«t  of  banks 
that  reciuired  particular  care  on  the  part  of  the  Department,  and  the 
Keystone  Bank  headed  the  list.  ' 

By  Mr.  Henderson  : 
Q.  There  is  no  doubt  of  that,  Mr.  Drew;  but  why  was  it  that  vou 
usked  so  many  times  for  delay  in  taking  action  in  regard  to  the  K^y! 


INVESTIGATION   OF    NATIONAL   BANKS. 


507 


r.' 


Tft  r?i rrehabilftate  the  bank.  subs<rii>tious  for  new  sto.k,  in  amount 
wci^  rece-ved  by  me  ^n  agreeme  it  s^g  le  •  .'^^,^„,,g^  ,^.,,  ,,,^ 
^r  ved  V  me,  and  Vv^tnieT V  some  capitalists  w-;«ade,  in  .ho 

tion  and  cogni/.ance  of  all  those  interested  m  tlie  bank,  as  will  .i>  ti.e 

that  lie  expeciea  tnat  security  a  lien  upon  the  Lucas  assets, 

nittee  as  well  as  to  the  examiner.     So  far  was  this  seriously  eniei 

BaSr-Tri^tion  bonds'worth  nearly  par    That  7"  f jake  J9  W- 

V  ^e^d'b'vS oiS  Zr^h:Sr"l25WS  to"be tfd  i^eSow. 
So^*£&rdebMn  order  to  make  the  tWng  perfec^y  good 
must  be  worth  $9(K),000;  ^25,000  for  the  building  left  $675,000  for  the 
nro^rtvlt  Sea  Girt  anA  Spring  Lake.  Whether  that  could  be  worked 
KnaHv  bv  fuSus  managlment,  of  course,  was  a  question;  but 
thL  t  wouW  havTbeen  infinitely  better  for  the  bank  stockholders^ 
and  depSrs  consenting  thereto  to  make  the  attempt  than  to  go  mt« 
a  receiver's  hands  events  have  fully  settled. 


DAMAGED  PAGE(S) 


m 


508    . 


IXVKSTKJATION    OF    yATIONAL    BANKS. 


m 


A  meeting  was  held,  i>re.sided  over  by  Ool.  H   W  Gi-iv  At  wi.ir.i.   r^i.. 

«I.OO, 000.  AUei;  the  bank  closed-aftcr  it  went  into  a  receiver's  liaiids 

without  controversy,  and  on  which  a  dividend  of  10  per  cent  has  hepn 
paid     It  goes  without  saying  that  if  anybody  connerted  w?th  the  bank 

presentniff  itself  only  after  the  bank  had  come  into  the  1  ai.ds  of  a  re 
By  Mr.  Walker: 

ft9-ii ;  J*/!i"  ';r'"rf  y""''  deposit  debt  by  false  entries  ai<l  charges 
f2o0  000  and  alter  the  summary  of  your  ledgers  to  correspond  »nTif 
all  this  still  agrees  with  the  general  account  of  depositors  and  th  s  is 
bv  «^0  OmMi '.h  rt*"*'  ''"*r '  '}''y  ^y  ^'^y  ""^  hour  by  hour  al  wrong 
st'Ltetel  ts  of  tl^  hJnrfiJi'r  '^''^'''  «^*««";t-and  published  in  thf 
statements  ot  the  bank  hve  times  a  year,  and  nut  upon  the  cards  and 
advertisements  of  the  bank  showiiijr  that  vou  owe  «"^0  nlw»  ilvi  f f 
you  do;  then,  on  the  other  side,  as  Mr   mS  did,  go  t,?^    iTen   or 

r*-'lH  oH^f  *"^«*'*  *'!?''■  ^''"""^  '■•"•■'"^  °f  bills  refeivab"e  mi  write 
o*«vr;f.'  t  *^"''*«  nof*'"*  «"d  pit  them  in  the  bank-how  can  youdev  se 
asystemofexamiuation  which  will  call  to  account  every  note  u  th| 
bank  the  genuineness  of  the  names  upon  them  and  every  check  that 
nh  Iw'f  '"  *^^  ^"'^"tcher  and  charged  against  the  account  as  be  ?^ 
absolutely  genuine,  not  aecurate,  but  absolutely  gentiine  which  would 

^v^reSioi?i:!.r^"""  ^"^^  --  -  '-^  ^^^"^ 

est  men  who  may  be  unskilled,  but  of  no  value  or  priu-ticallv  none' 
where  rascals  have  control  of  the  bank?— A  Yes •  «.,T in  tM.  ' 
please  remember  that  it  was  not  the  te  er  or  ihe  cashier  but  ft  Z! 
irra."'  the  bank,  it  was  the  manager  o^he  bantlnd  S  Jc'cr'e^ 

By  Mr.  Broshts: 

Q.  In  connection  with  this  question  whether,  under  existing  laws 

^"'intf  •;'"  aHonarb'x.'.r*'""''  ""^^  ''1'  *"  '^'^  matter  for  aKuy 
sSccessful  V  as  to  e  "^^^^  to  $1,000,000,  to  be  concealed  so 

oftlntba  k»  A  vl  "'**  vi*fi  ance  of  an  alert  and  capable  examiner 
ot  that  bank  ?-A.  Yes,  sn-;  nothing  short  of  omniscience  would  detectiX 

By  Mr.  DiOKERsoN: 
A.^Every  kem.°"'^  *"  tliscovered  by  testing  the  validity  of  the  paper  t- 
Mr.  Walkek.  I  will  ask  you  one  thing  further 

teif ofp!i'if„„rrbi";ur^i^^^^^  ''-  "'^^-^  ^'  ^  --  «^«- 

The  W  iTNESs.  I  think,  sir,  and  I  say  it  with  all  modestv  I  have  l,;,d 
longer  experience  in  bank  examining  than  Jy  ma.?who  eveiS     1 


INVESTIGATION    OF    NATIONAI.   BANKS. 


509 


have  ou  file  in  the  oflBice  of  the  Department  nearly  3,00()  reports.  This 
l>reliininary  statement  is  the  first  one  of  all  that  number  on  account  of 
which  any  fault  has  been  found  with  me.  I  have  some  notions  whereby 
I  think  the  system  could  be  greatly  improved.  I  do  not  aim  at  impossi- 
bilities, but  1  think,  in  the  first  place,  the  examinations  are  not  frequent 
enough  and  they  are  not  thorough  enough.  The  liabilities  of  the  bank 
are  not,  as  a  rule,  tested  in  country  banks. 

By  Mr.  Walker: 

Q.  Is  it  a  practical  thing  once  in  twelve  months,  at  such  date  as  the 
examiner  may  himself  determine,  not  at  fixed  intervals,  to  take  every 
liability  of  a  bank  requiring  the  address  to  be  given  upon  a  printed 
blank  and  ask  whether  it  is  genuine  or  not 5  is  that  i)ractical? — A.  It 
would  not  be  practical;  it. has  been  tried.  I  have  sent  recommenda- 
tions to  the  Comptroller  from  time  to  time,  one  of  my  first  recommen- 
dations being  that  all  foreign  balances  of  banks  be  corresponded  about 
independently  of  the  books  of  the  bank.  It  rose  from  the  trouble  with 
the  Mechanics'  National  Bank  of  Newark,  where  the  examiner  had  been 
deceived  by  nearly  $500,000  as  to  its  balance  in  the  Mechanics'  National 
Bank  of  New  York.  The  examiner  wrote  from  the  Park  Hotel  to  the 
president  of  the  Mechanics'  Bank  of  New  York  to  give  the  balance  that 
he  held,  if  any,  in  favor  of  the  Mechanics'  Natonal  Bank  of  Newark.  The 
cashier  knew  that  that  was  going  to  be  done.  He  steps  over  to  New 
York  and  sees  the  president,  "I  have  got  an  examiner  over  there  in  my 
bank  to-day."  Yes,  he  says;  "I  can't  think  of  his  name  at  present. 
I  know  him  well.  I  just  had  a  letter  from  him.  He  was  asking  me 
about  your  account.  I  have  just  answered  it."  "  Oh,  have  you,"  he 
says.  "Yes."  Well,  I  am  going  right  there;  I  will  take  it."  "Very 
well."  He  takes  it  and  passes  out;  goes  to  his  dinner  in  New  York, 
writes  a  letter  stating  the  balance  due  his  bank  to  be  $500,000  signed 
by  the  president,  puts  it  in  the  mail  in  New  York.  Mr.  Examiner  re- 
ceives it  and  says  it  is  all  right. 

Q.  But  that  would  not  happen  one  time  in  one  hundred  t — A.  That 
was  the  starting  point  of  this  new  regulation  lecoinmended  by  me  to 
the  Comptroller,  that  banks  carrying  large  accounts  in  other  banks 
when  examined  be  corresponded  with  directly. 

Q.  Is  that  the  rule  now? — A.  Y^es,  sir;  that  is  the  rnle  now.  Wliat- 
ever  efficiency  the  system  of  bank  examination  in  the  large  cities  pos- 
sesses is  owing  mainly  to  the  banks  and  the  clearing-house  organiza- 
tions of  those  cities.  Boston  has  a  peculiar  system.  The  Boston  ex- 
aminer, as  I  understand,  is  obliged  to  write  to  every  depositor.  If  the 
bank  has  5,000  depositors  every  depositor  receives  a  letter,  for  which 
the  bank  pays  the  postage,  and  it  is  quite  an  item  sometimes;  but  they 
are  so  organized,  or  were,  that  they  passed  this  resolution  unanimously, 
and  any  bank,  I  am  informed,  that  failed  to  do  it  would  sacrifice  it« 
place  in  the  clearing  house.  I  recommended  that  in  Philadelphia,  and 
we  tried  it  for  a  short  time  under  Mr.  Cannon,  but  it  made  such  a 
"hurrah  boys"  with  the  depositors,  who  came  mnning  in  drawing  their 
accounts  right  and  left  out  of  the  bank — ^they  thought  it  was  a  new 
thing,  something  extraordinary — and  I  could  not  get  them  to  put  their 
accounts  back.  Now,  the  double  examination,  the  semiannual  exam- 
ination of  the  national  banks  of  the  city  of  Philadelphia,  as  well  as  in 
other  cities,  were  inaugurated  by  the  request  of  the  banks  themselves, 
the  clearing  house,  through  their  clearing-house  committee. 

If  I  was  going  to  advise,  I  would  say  examine  every  bank  in  the 
United  States  twice  a  year,    A  bank  examiner  coming  to  a  bank  only 


DAMAGED  PAGE(S) 


510 


I' '  • 


INVESTIGATION   OF   NATIONAL   BANKS. 


I   ^ 


ouce  a  year  strikes  but  one  dividend  period.  He  may  see  some  tbines 
m  an  honorably  managed  bank  that  ouglit  to  be  charged  off  before  the 
next  Oividend.  He  will  make  a  recommendation  to  that  effect  He 
may  write  to  the  Comptroller.  Another  thing,  some  bank  examiners 
liave  too  many  banks.  There  are  bank  examinerswho  have  150  banks- 
that  18  a  bank  once  in  two  days  the  year  around;  and  I  would  have 
smaller  districts  and  more  examiners,  and  I  would  have  an  order  that 
1  ?!i^^^*^"^"'^*'^  "'  contiguous  districts  agree  to  go  together.  But  a 
skillful  rogue  can  alter  his  assets.  You  can  not  prevent  forgery  and 
you  can  not  prevent  lying  and  you  cannot  prevent  being  mistaken  as 
to  a  man's  reputation. 

By  Mr.  Brosius: 

Q.  It  is  hard  to  circumvent  criminals,  is  not  it?— A.  Well,  nobody 
had  any  idea  Mr.  Lucas  would  do  this  thing.  How  many  more  since  he 
has  died  have  been  leaning  in  the  same  Uneon  his  name,  I  do  not  know; 
It  IS  impossible  to  tell.  Another  point  about  this  examination  I  would 
bke  to  have  noted.  Shortly  after  the  death  of  Mr.  Lucas,  in  1888,  Mr. 
Marsh,  then  the  cashier  of  the  bank,  communicated  to  some  of  the  di- 
rectors the  fact  that  Mr.  Lucas  had  a  suppressed  indebtedness  of  some- 
thing over  a  half  a  million  of  money.  This  fact  was  not  communicated 
to  the  board ;  it  was  not  entered  upon  the  books  of  the  bank.  It  was  not 
included  in  the  report  of  the  bank  to  the  Comptroller.  It  was  not  re- 
ported to  the  bank  examiner.  It  was  nowhere  in  sight,  on  deck  or  be- 
low, m  that  bank;  after  the  bank  got  into  difficulty,  but  before  it  was 
absolutely  in  the  hands  of  a  receiver,  this  fact  was  communicated  to  me 
and  repoi  ted  t<>  the  Comptroller.  If  that  fact  at  that  time  had  been 
known  Mr.  Charles  McFadden,  of  the  board,  as  he  said  when  he  heard 
it,  would  Iiaye  advanced  all  the  money  necessary  to  make  good  the  de- 
hcit,  would  have  had  the  bank  instantly  placed  in  safe  hands,  and  there 
would  have  beei-  no  connection  of  Treasurer  Bardslev  with  that  bank, 
because  his  term  of  office  began  snbsequently  to  that  transaction.     That 


intention  that  they  kept  this  taet  away  from  the  kVo7led^^^^ 
ciates,  but  it  was  a  very  grave  mistake. 

Q.  I  would  like  to  inquire  just  there,  how  many  of  the  officers  of 
that  bank  must  have  knowuof  this  indebtedness!— A.  Well,  Mr  Marsh 
was  then  the  cashier  and  the  i>resident  was  dead.  Mr.  Haynes  suc- 
cetHled  him  as  president  the  first  year.  1  do  not  like  to  say  who  knew 
It,  but  I  believe  two  or  three  of  the  leading  diretors  knew  it. 

Q.  And  the  cashier  must  have  known  it?— A.  He  told  them  he  had 
been  caiTying  it  for  Mr.  Lucas,  and  he  told  these  directors  and  it  is 
greatly  to  be  regretted,  because  John  Bardsley  came  in,  then  a  good 
deal  happened ;  who  is  responsible  nobody  knows.  This  $935,000  which 
has  beeji  admitted  by  the  courts  and  on  which  a  dividend  was  to  be 
paid,  which  was  not  made  against  the  bank  until  after  the  anest  of  Mr. 
Bardsley  and  the  flight  of  Mr.  Marsh,  in  my  Judgment,  ought  to  have 
been  more  carefully  and  thoroughly  analyzed  before  it  was  a^lmitted. 
The  theory  that  for  the  duebills  given  by  the  bank  to  Mr.  Bardslev 
the  money  thus  derived  was  used  for  the  payment  of  the  depositors  of 
the  bank  m  a^  legitimate  way  is  untenable;  for  the  fourteen  months 
during  whicn  these  duebills  in  greater  or  less  amount  were  outstand- 
ing against  the  bank,  but  not  in  sight,  the  deposit  debt  of  that  bank  was 
not  so  materially  reduced.    It  is  a  theory  well  deserving  examination 


INVESTIGATION   OF   NATIONAL    BANKS. 


511 


whether  this  vast  amount  of  money  instead  of  going  to  the  legitimate 
depositors  was  not  mainly  loaned  to  outside  parties  who  to-day  are 
lustly  indebted  to  the  bank  therefor.  1  think  an  investigation  of  my 
connection  with  the  Keystone  and  Spring  Garden  National  banks  ouglit 
to  have  been  accorded  me  early  in  the  trouble.  It  was  promised  me  by 
the  Comptroller's  letter  io  me,  and  by  his  pubUc  letter  through  the  Sec- 
retary to  the  mavor  of  Philadelphia.  It  was  earnestly  requested  by  the 
Cleanng- House  Association  of  Philadelphia,  the  chairman  of  the  com- 
mittee which  volunteered  to  act  as  a  member  of  the  examining  commit- 
tee I  had  designed  that  a  bank  examiner  acquainted  with  city  busi- 
ness possibly  one  not  known  to  me,  and  an  expert  from  the  Treasury 
Department,  a  thorough  accountant,  not  a  bookkeeper  merely,  and  that 
a  representative  of  the  Clearing- House  Association,  who  stood  by  me  m 
all  t&is  trouble,  should  constitute  that  committee.  Instead  ot  that  an 
employe  of  the  secret  service  department  has  been  the  only  investiga- 
tor of  the  bank,  and  I  am  still  without  what  I  conceive  to  be  a  tair  op- 
portunity to  vindicate,  if  possible,  my  connection  with  the  bank.  I 
have  more  letters  here.    (Witness  produces  papers.) 

By  the  Chairman: 

Q  I  do  not  think  we  can  take  the  letters.  Anything  relating  to  the 
baiiis:  we  can  take,  but  anything  given  you  since  your  removal  we  have 
nothing  to  do  with. 

The  Witness.  I  see;  but  I  would  like  to  show  you  one. 

(The  chairman  of  the  committee  stated  that  he  directed  to  be  sent  t<» 
Mr  Drew  from  time  to  time  copies  of  testimony  taken  before  the  com- 
mittee on  this  investigation  to  his  address  in  Philadelphia— the  Con- 
tinental Hotel :  and  that  he  (the  chairman)  was  informed  that  such 
testimony  had  been  forwarded  to  said  address.  This  statement  was 
made  in  response  to  the  statement  of  witness  that  he  bas  not  iweivet^ 
printed  copies  of  the  testimony.  The  chairman  of  the  committee  lur 
ther  tendered  to  Mr.  Drew  at  this  time  copies  of  the  testimony  and  ad- 
iourned,  with  the  consent  of  the  committee,  a  farther  meeti  ng  of  the 
committee  for  Mr.  Drew,  if  he  so  desired,  until  to  morrow  morning  at 
half  past  10,  or,  if  that  were  inconvenient,  until  such  latter  time  as 
would  suit  the  convenience  of  the  \\itness.)  ^  ,    ,,.       ^  .^ 

The  Witness.  I  will  see  the  committee  to-morrow  at  halt  past  10. 

(At  this  point  the  committee  adjourned  till  half  past  10  o'clock  to- 
morrow.) 


Washington,  D.  C,  January  7,  1893. 
The  Committee  on  Banking  ancl/Ourrency  m<t  this  day  at  10;30 
oV4ock  a.  m.    Present:  Messrs.  Bij/tn  (chairman)  and  Walker. 

TESTIMONY  OF /(f .  P.  DREW--Resumed. 

Mr.  W.  P.  Drew  was  present  as  a  witness. 
By  the  Chairman  ; 

Q.  Mr.  Drew,  did  you  receive  printed  copies  of  testimony  taken  be- 
fore this  committee  ?— A.  I  did  last  night. 

Q.  You  received  them  in  this  committee  room  yesterday  and  lett 
them  here,  did  you  not?— A.  Yes,  sir. 


DAMAGED  PAGE(S) 


i 


II- 


» 


&12 


INVESTIGATION    UF    NATIONAL    BANKS. 


Q.  They  were  sent  to  you  by  meisseuger  later,  and  you  received  them 
again  last  night? — A.  Yes;  yesterday  1  received  them. 

Q.  You  may  proceed  aiul  make  any  further  statement  you  desire. — 
A.  I  have  a  letter  here  I  would  like  to  have  go  in.  It  is  a  letter  from 
Secretary  Foster  to  the  chairman  of  the  clearing  house  committee. 

Q.  What  is  the  date  of  it!— A.  March  30,  1892. 

(The  following  letters  were  introduced  as  evidence) : 

Treasury  Department, 
Washington  March  SO,  1892. 
Mr.  W.  P.  Drew, 

Ph  i ladelphia.  Pa. : 

My  Dear  Sir:  I  inclose  herewith  a  letter  to  Mr.  Philler,  which  explains  uiy  atti- 
tude towards  yourself. 
Very  truly,  yours, 

Chari.es  Foster. 


Treasury  Department, 
JVafthington,  March  29,  1892. 
My  Deak  Sir:  Under  cover  of  a  letter  from  Mr.  W.  P.  Drew,  late  bank  examiner, 
of  Philadelphia,  1  have  your  favor  of  March  24.  There  has  never  been  any  disposi- 
tion to  discj-edit  the  intejcrity  of  Mr.  Drew.  The  facts  are,  so  far  as  the  Couii)trol- 
ler's  office  is  concerned,  tliat  while  Mr.  Drew  discovered  the  defalcation  in  the  Key- 
stone bank,  on  the  .5th  of  January,  Mr.  Drew  said  in  my  presence  that  he  thon^^ht 
he  had  promptly  notitied  Mr.  Lacey  that  he  had  no  knowledge  of  any  communica- 
tion to  that  effect.  He  testified  before  some  committee  in  Philadelphia  that  he  had 
notitied  Mr.  Lacey  of  that  defalcation.  It  is  clear  to  my  mind  that  tlie  notification 
as  made  never  reached  this  office.  I  have  no  criticism  as  to  the  course  pursued  by 
Mr.  Drew,  the  Comptroller,  and  the  committee  of  the  clearing  house,  in  trying  to 
rehabilitate  the  Keystone  Bank.  I  do  not  feel  as  kindly  to  Mr.  Drew  as  \  might. 
Uv»d  he  \  .  jv'.Ied  Mr.  Lacey  in  a  communication  published  last  fall.  PrexiiMis  to 
t^iie  pnbiix'ii..bn  of  that  communication  1  met  Mr.  Drew  in  the  Continental  Hotel  at 
Philatlelphia'.  At  this  meeting  he  asked  if  he  might  address  a  communication  to 
nie  in  the  nature  of  defending  himself.  I  said  certainly.  In  his  public  interview 
be  says  he  writes  the  letter  at  my  re()uest.  I  repeat,  we  have  no  disposition  to  dis- 
credit Mr.  I  )rew,  furtlun*  than  is  stated  here. 
Very  truly,  yours, 

Charles  Foster. 
Mr.  George  Philler, 

President  First  National  Bank,  Philadelj^hia,  Pa, 


Treasury  Department, 
OFriCK  OF  THE  Comptroller  of  the  Cur  ;ency, 

Washington,  D.  C,  Septernci:- 1,  1892^ 
Dear  Sir:  I  have  given  the  8|»ring  Garden  and  Keystone  National  Bank  matters 
pretty  full  and  thorough  investigation,  as  well  as  your  relations  with  the  same.  I 
have  no  doubt  of  your  personal  integrity  and  have' found  nothing  to  convince  me  of 
any  financial  irregularity  upon  youi  piy t  in  your  personal  relations  to  said  institu- 
tions.    Your  letter  is  placed  on  file  and ViU  be  given  due  consideration. 


Very  respectfully. 


Mr.  William  P.  Drew, 

^hiladelphiaf  Pa, 


\ 


A.  P.  Hepburn, 

Comj^troller, 


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